Let’s cut to the chase with your salary benefits: Your salary package includes your base salary, superannuation, and fringe benefits. By ‘sacrificing’ part of your salary for fringe benefits or extra super contributions, you can lower your taxable income and keep more of your money in your pocket.
So, what can you claim?
If you work for a public hospital or ambulance service, you may be eligible to salary package non-cash benefits without attracting Fringe Benefits Tax (FBT). These benefits can include:
- Everyday living expenses – up to $9,009 of general living expenses, such as mortgage repayments, rent, credit card payments or school fees.
- Exempt benefits – like work-related laptops or mobile phones.
Additional savings through meal entertainment.
Meal Entertainment is an additional benefit that allows eligible employees to claim up to $2,650 per annum on certain food and drink expenses. Best of all, this sits outside your $9,009 cap and does not appear on your payment summary.
Eligible expenses include:
- Dining out at cafes or restaurants with family and friends.
- Meals and drinks enjoyed while travelling, including overseas.
- Catering for private functions (think weddings, birthdays, anniversaries).
However, there are a few things to keep in mind — you can’t claim:
- Alcohol without a meal
- Takeaway or meals consumed at home or work.
- Meals where you’re dining alone.
- Events where food isn’t the primary purpose.
- Claims under $15 (generally not accepted).
Using a meal entertainment card
You can use a dedicated Meal Entertainment Benefit Card, which works much like a Visa debit card — but specifically for eligible expenses.
A few things to note:
- Any unused funds are refunded (minus PAYG tax).
- Receipts should be kept in case of audit.
- Misuse may lead to the cancellation of the card.
Ready to start saving?
Maximising your salary benefits can put more money in your pocket, but it needs to be done right! Speak with our team today about your salary packaging options and start saving.
Megan is a Partner in Cutcher & Neale’s Specialist Medical Services Division and has over 20 years of industry experience.
Megan is an expert in the taxation field, with a niche specialisation in advising medical professionals.
