Who's got a Salary Packaging Dining Card?

[vetrade]

Actually, if I were to believe this site (Remunerator News | Federal Budget effects on Salary Packaging Meal Entertainment and Holiday Accommodation Benefits) it means that all money on the card should be spent before April 1,2016.

Gee that would be harsh considering that contributions can still be made up to 31st March, 2016.
"Any unspent amounts rolled over for the 2016/17 year will be a part of the cap applicable from 1 April 2016." I guess that means you can still spend the accumulated balance after 1st April but if you do it means you can't claim any of the (reduced) allowance from then onwards.

 

[Pablo]

Others asked if you have both cards can you use it for a cruise. Apparently not. A lot of the acceptable uses are set by the employer.

Both my wife and I can do meal entertainment. My wife has a card and can also submit receipts if the card doesn't work, and I don't have a card, but just submit receipts for approval.

Anyway, what we can both claim is radically different - I think because there are so many different interpretations. I can claim all accommodation, and cruises (close colleagues just claimed a $19,000 cruise) and I claimed our wedding anniversary years ago when I got married!! We've also been told we can claim flights to a cruise as long as it's all on the same bill - ie, pay a package price for a cruise which includes flights and you can claim it all, as long as flights aren't itemized.

So very different rules.

Will be sad to lose the unlimited M&E claims come 1 April.

 

[medhead]

The last budget introduced a cap on Meal&Entertainment and Accommodation&Venue hire to 5K grossed up amount (approx 2.5K) to start from April 2016. I wonder if there will be a limit in time to spend the money already on the M&E card? If not I might put my whole salary on the card until April.

This is why now is the time to load up the card. At least in my case the balance at the end of the year is rolled over to the following year. Already sacrificed, so won't count towards the $2500 cap. $50 a week is pathetic.

Previously had a westpac card, employer policy was not to use overseas. Have since moved to new provider who uses ANZ, new policy is card usable overseas, plus we can submit separate receipts if not using the card. Supposed to be able to use the card for taxis to the meal but tried and it doesn't work - I should be able to submit that as a separate claim I suppose.

Pretty sure I have to be eating out, not at home - supermarkets would be out. Alcohol is definitely allowed. Old policy used to be having to get 2 main meals and drinks. Now provider says one meal is fine but have pulled me about buying substantial meals. I think that was triggered by buying pub grub and/or drinks and bar snacks at a hotel lobby bar.

 

[vetrade]

This is why now is the time to load up the card. At least in my case the balance at the end of the year is rolled over to the following year. Already sacrificed, so won't count towards the $2500 cap.

Don't want to spoil your night medhead but this is from the link defurax posted:
"Any unspent amounts rolled over for the 2016/17 year will be a part of the cap applicable from 1 April 2016."

 

[Cynicor]

I don't have the M & E card, as we hardly ever eat out, but I'd certainly get it if we could use it to buy food at the supermarket (which of course we can't, as you've mentioned in your recent post). There was a big furore in WA a few years ago over this card, as a number of people (doctors in particular, apparently) were going out to dinner, photocopying the receipt for the group and then several of them were claiming the total amount for the same meal ... and of course, they got caught - Perth isn't THAT big a place, so it's only a matter of time before SmartSalary cottoned on to what was happening!! Just because these idiots wanted to be greedy, it nearly ruined it for everyone else who uses the card, as the whole scheme was almost canned. As it is, a cap has now been applied rather than it being unlimited.

Actually, it was a bunch of nurses on a ward. Everyone would put any receipts in a bag and all photocopy it. Crazy stuff. The doctors were claiming big ticket items such as wedding catering etc.

Joondalup Health Campus did well out of the deal because the state government had to have someone take a hit. They chose a couple of final year trainers who gamed the system in a big way and kicked them out of the public system, knowing that they were practically Fellows anyway. We got them in roles that would normally be for service registrars.

And Jurahn- it's not meal and entertainment. It's "meal entertainment," large difference. A lot of people in WA seem to call it the same as you but it's not for other entertainment at all, it's for meals where you entertain, which is why there is a minimum requirement of 2 diners.

 

[Jurahn]

I just tend to use the "and" as it seems to be the common terminology people seem to use when referring to the card, but yes, you are quite right, it is actually meals-entertainment.

 

[medhead]

Don't want to spoil your night medhead but this is from the link defurax posted:
"Any unspent amounts rolled over for the 2016/17 year will be a part of the cap applicable from 1 April 2016."

I'll wait to see the legislation or whatever for final judgement. But that doesn't really make sense. They plan to cap the FBT -exempt amount that can be sacrificed in the FBT year. In principle, it hard to see how an amount sacrificed this year, towards under this year's FBT cap can then be considered to be sacrificed in the following FBT year. Taxation is determined by the time of the transaction. Income still in my bank account on 30 June doesn't get taxed again on 1 July. This sounds like a double FBT taxation proposal, subject to seeing the actual rules once introduced.

I'd also note that the balance on my meal card from last year, that rolled over on 1 April, did not count towards my FBT-exempt cap for this year. I think renumerator either run their system differently, or someone has had a bit of a brain explosion.

which is why there is a minimum requirement of 2 diners.

My current provider does not have the 2 diner requirement. Their reasoning is that I could eat by myself before meeting a group for the entertainment bit. or something like that. There is also the going dutch option. But I am restricted from using it for work related things, like lunches.

 

[albatross710]

Mrs Albatross has a card from her NFP. The card regularly gets declined but the receipts can be manually processed through their payroll dept. Things I know:

a) Can't be used for alcohol
b) Has to be @sit-down@ meals
c) Merchants are often confused by the various denialcodes that get returned.
d) Have successfully used the ANZ card for overseas dining.

If we know we will be travelling and dining out extensively we will increase the contributions in the few pays prior to departure.

 

[Cynicor]

I'll wait to see the legislation or whatever for final judgement. But that doesn't really make sense. They plan to cap the FBT -exempt amount that can be sacrificed in the FBT year. In principle, it hard to see how an amount sacrificed this year, towards under this year's FBT cap can then be considered to be sacrificed in the following FBT year. Taxation is determined by the time of the transaction. Income still in my bank account on 30 June doesn't get taxed again on 1 July. This sounds like a double FBT taxation proposal, subject to seeing the actual rules once introduced.

I'd also note that the balance on my meal card from last year, that rolled over on 1 April, did not count towards my FBT-exempt cap for this year. I think renumerator either run their system differently, or someone has had a bit of a brain explosion.



My current provider does not have the 2 diner requirement. Their reasoning is that I could eat by myself before meeting a group for the entertainment bit. or something like that. There is also the going dutch option. But I am restricted from using it for work related things, like lunches.

Interesting.

Some huge variation between how and what the various cards can be used for. WA I would imagine to be most consistent with only 2 providers and relatively strict rules.

 

[medhead]

Interesting.

Some huge variation between how and what the various cards can be used for. WA I would imagine to be most consistent with only 2 providers and relatively strict rules.

I'd say the rules are roughly the same. My previous card provider, same employer just they changed the contract, had the 2 people restriction. Things like that seem to come down to the interpretation of the provider, who will be the ones doing the auditing.

Another variation is that my employer gets to keep half of my nominal tax savings. for example someone on the 30% tax rate will save $300 per $1000 put onto the card. The employer keeps $150 of that amount. I don't know how the ATO signed off on that arrangement but it is widespread in NSW.

 

[medhead]

Just logged into my meal card area and noticed the following:

[TABLE="class: HandbookTables, width: 100%"]
[TR]
[TD="width: 50%, bgcolor: #8271a7"]Acceptable as meal entertainment[/TD]
[TD="bgcolor: #8271a7"]Not acceptable as meal entertainment[/TD]
[/TR]
[TR]
[TD="width: 508, bgcolor: #ffffff"]

• Dining at a restaurant or café, with your spouse or children
• Dining at a club or pub with colleagues
• Dining at a fast food restaurant with friends
• Room service meals
• Hiring professional caterers to prepare and serve food and drink for a wedding, engagement or birthday party
• Attending a ball, gala event or charity dinner
• Pre-purchased vouchers for meals only e.g. Cudo, Spreets etc
• Dessert associated with a meal (can be consumed at different places)
• Parking, transportation expenses incurred associated with attending above listed meals*

[/TD]
[TD="bgcolor: #ffffff"]

• Takeaway, home delivery or drive through meals
• Food consumed in-flight
• Grocery and supermarket bills
• Coffees, cakes, sweets and other snack or party foods (unless included as part of a larger bill for a qualifying meal)
• Food and drink consumed at the theatre, movies, sporting or other entertainment events
• Drinks that are not purchased in conjunction with a meal
• Food or drinks purchased for entertaining at home, a picnic or some other public place
• Meals purchased by someone other than yourself or your spouse

[/TD]
[/TR]
[/TABLE]

 

[andye]

A fair bit of variation even in NSW health system. I often claim food and drink from supermarkets for parties at home or social events at other people's houses/parks etc-this seems allowed with my scheme. Didn't know parking was a possibility but have claimed taxis to restaurants. Vouchers also a new one on me.

I'll lose out when the cap hits next year as I would have exceeded it on a recent European holiday.

I never use an ME card as I want the points-I claim with receipts

I understand that SA hospital employees can claim holiday accommodation-that would have been great if it was uncapped

 

[andye]

The ball/gala dinner/charity event is also interesting. Will have to test it out

 

[medhead]

A fair bit of variation even in NSW health system. I often claim food and drink from supermarkets for parties at home or social events at other people's houses/parks etc-this seems allowed with my scheme. Didn't know parking was a possibility but have claimed taxis to restaurants. Vouchers also a new one on me.

I'll lose out when the cap hits next year as I would have exceeded it on a recent European holiday.

I never use an ME card as I want the points-I claim with receipts

I understand that SA hospital employees can claim holiday accommodation-that would have been great if it was uncapped

I can also do manual claims with receipts, but must have an ME card for those to be approved. I logged in to check that point when I came across the table.

 

[defurax]

This is why now is the time to load up the card. At least in my case the balance at the end of the year is rolled over to the following year. Already sacrificed, so won't count towards the $2500 cap. $50 a week is pathetic.

So it seems that with the Salary packaging provider at work the balance on my M&E card will need to be $0 by 1 April 2016 to be able to package $2,550 in the 2016-2017 FBT year. Good thing I didn't load too much money on the card...wonder what would happen with a balance of more than 2.5K on 1st of April? The person would be liable to pay FBT on the balance over 2.5K?

"Smartsalary will make sure that you meet the new benefit rules and all Meal Card deductions will be automatically amended from 1 April 2016 to ensure that your deductions do not exceed the $2550 Entertainment Cap amount.

Example

If your balance is reduced to $0 on the 1st April 2016, you will be able to package the full $2550 Entertainment Cap. This means your deductions and payments to your Meal Card will be approximately $100 each fortnight.

If your balance is $1000 on the 1st April 2016, this amount will roll over and you will be able to package $1550 of the Entertainment Cap. In this example your deductions are approximately $60 each fortnight.


To ensure that you have enough time to spend your balance, we recommend that you keep up-to-date with your card balance.


For those who have a pay day that falls on or near the 31st March 2016, there will be no deductions and payments to Meal Cards on these paydates. Why? Because we want to make sure you have enough time to spend those funds."

 

[Jurahn]

[TABLE="class: htmlDetailElementTable"]
[TR]
[TD]Yes, appears to be exactly the same with Smartsalary here in WA as well. Their website also states (on the "Community" page):

If you’ve had a Meal Card in previous years, you’ll have noticed that nothing really happens to your card balance when one FBT Year ends and another begins – it just carries over and runs as normal.
With the changes to rules and the cap limit of $2,550 for the Entertainment Benefits being introduced, we will be adding some additional card management steps for you along the way.
One thing to remember is that if you have a balance that rolls over to the new FBT Year, it will count towards the $2,550 you have available to claim in that year.

And also:

Please note: Manual claim forms will no longer be accepted after the 1st April 2016 for all Entertainment Benefits for many of our employers and these expenses will need to be purchased via the Meal Card.[/TD]
[/TR]
[/TABLE]

 

[andye]

Will be a shame when the cap hits. I've made good use over the holidays as a last hurrah

 

[defurax]

Will be a shame when the cap hits. I've made good use over the holidays as a last hurrah

I've heard that we can still package unlimited prepaid holiday accommodation for stays up to 31 December 2016 as long as the amounts are deducted before 1 April 2016. I couldn't find this mentioned on SmartSalary website, anyone can corroborate this? If true I will prepay all my hotel stays until end of December.

 

[coles525]

Also wondering about hotel pre payments....

 

[PLANT]

Yes it's true..... Bloody gravey train coming to an abrupt halt..... Grrrr.... Life on the line daily and they pay pennies...... Then take this..... NOT HAPPY JAN!