In addition to the great benefits of Salary Packaging, the ATO allows eligible employees to package the cost of dine-in meals and accommodation in the entertainment benefits cap to extend your tax savings even further.
Meal and Entertainment benefits are a great way to go out, spend a weekend away or eat at your favourite restaurant without having to worry about the big bill at the end. While you enjoy some well-deserved R&R time, you are saving tax dollars. The ATO has specific regulations around the type of meal and entertainment benefits that can be claimed, most notably that you must dine at a restaurant (non-fast food, takeaway or delivery) in order to claim the benefit and remain compliant.
During the height of Covid-19, most restaurant establishments were closed and thus making it very difficult for those Salary Packaging to claim Meal and Entertainment benefits. In response to this, the ATO permitted takeaway meals and home-delivered meals to be included under the benefit for that current FBT year (2020-21, 2021-2022). Further to this, the ATO decided not to audit any expense claimed during the period when venues were closed by emergency restrictions.
This change made it easier for you to support local businesses by continuing to buy takeaway meals from your favourite restaurants and cafes. Now that we’re slowly coming out of lockdowns and restrictions are easing the ATO has decided to reverse this ruling for the new FBT year (2022-23).
What does this mean for me?
This means it’s time to get out of the house and enjoy a night out, or even maybe a weekend away!
The rules have been re-instated so as a quick reference guide here is what the ATO allows to claim as Meal and Entertainment (Click to expand):
There’s a lot that falls under Meal and Entertainment Benefits, and as an added benefit to Salary Packaging, it’s a no-brainer! If you’re worried about keeping receipts or you’re not too sure if a certain expense is allowed, then we suggest grabbing an Eziway Entertainment Benefits Card (EB Card).
Why get an EB Card?
An EB Card is the most convenient way to claim Capped EB. The card is ATO compliant, and funds are pre-approved for spending at eligible facilities. If you already have an Eziway Salary Packaging Card for your Capped Living Expenses Benefit, an EB account can be linked to the same card. Funds accumulate on the card until they are spent.
The EB account can only be used where the merchant ID identifies the vendor as a dining or accommodation facility. If the merchant type is not a suitable dining/accommodation facility, then the card will simply decline or be charged to your living expenses benefit account if you have one. So, if you’re not too sure if an expense can be claimed the EB card will keep you compliant!
With the rules going back to normal it’s time to get out and about again and support local businesses. If you have any further questions regarding Meal and Entertainment Benefits, we have included links to some further reading below, alternatively, you can contact your dedicated customer service officer on 1800 932 394 or email us at admin@eziway.net .au
Entertainment Benefit Card Factsheet
What are Entertainment Benefits FAQs
Can I claim a catered function on private premises? FAQ
The Eziway Team
1800 932 394 | admin@eziway.net.au