Cap introduced on meal benefits

Benefits including meals, alcohol, holidays and weddings will be capped under changes to salary sacrifice measures provided to health sector workers.

Benefits including meals, alcohol, holidays and weddings will be capped under changes to salary sacrifice measures provided to not-for-profit and public health sector workers.

Such benefits can currently be salary packaged without attracting fringe benefits tax from a workers' employer, and do not need to be reported.

The federal government will introduce a $5,000 cap on salary sacrificed meal and entertainment benefits from April 1, 2016, the start of the next fringe benefits tax year.

"This measure will improve the integrity of the tax system," the budget papers said.

Source AAP

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