What The Australian Federal Budget 2015-2016 Means for Not-For-Profits

For certain not for profit organisations the government is closing a major salary packaging opportunity. Those affected will include some charities and hospitals that allowed their employees to enjoy tax free spending on ‘meal entertainment’ benefits included; cruises, weddings, holidays and meals and alcohol in restaurants.

 

The change limits the access to benefits and places a $5,000 limit grossed-up cap per person. Any additional meal entertainment exceeding this grossed up cap can be counted as part of the employee’s existing FBT exemption or FBT rebate cap. The measures will apply from the 1st of April 2016. For more information please click here.

 

Find out more about the Charity Regulator and the Budget Approval.