The new legislation excludes food or drink provided to an employee, which has caused a reduction in the employee's salary or wages either by way of a formal salary packaging arrangement or where it would be reasonable to conclude that the employees salary or wages are lower because of the employees receipt of the food or drink. If there is an existing balance of an entitlement at 13th May 2008, this will remain exempt provided it is used by 31st March 2009. Any additional entitlement after 13th May 2008 will be subject to FBT. The measure does not affect subsidised canteens which are provided to all staff and are not part of a salary sacrifice arrangement. In other words, preferential treatment to some groups of employees - e.g. will not pass the new test.
17th-September-2008 | 