We have designed a new Entertainment (All) workpaper which combines the old Entertainment (Actual) and the old Meal Entertainment workpapers. This new workpaper was required due to the fact that as from the 2017 FBT year any salary sacrificed Meals/EFLE entertainment benefits must be valued under the Actual method (as they can’t be concessionally valued anymore) and these salary sacrificed Meals/EFLE entertainment benefits must now be included as reportable fringe benefit amounts (RFBs) for inclusion on your employee’s payment summaries where the total of all RFBs for the employee exceeds the $2,000 taxable value cap.
Note: If you are an FBT Taxable or FBT Rebatable Income Tax Exempt Body employer then you will use the Income Tax Exempt Body Entertainment (All) workpaper as per prior years which works in a similar way to this new workpaper for making your entertainment valuation elections.
The new Entertainment (All) workpaper also now allows for a more efficient means of ensuring that you can elect the cheapest valuation method for your non-salary sacrificed Meals and EFLE fringe benefits.
This workpaper simply requires that you now categorise your entertainment into either Meals, EFLE or Recreation types using the new Entertainment Type column.
The information for each entertainment type is then categorised into separate Gross Taxable Value and Taxable Value columns for each eligible entertainment valuation type and the total of the Taxable Values are then used to determine the cheapest of the available entertainment valuation methods.
Note: All other entertainment benefits that can’t be treated concessionally (ie all Recreation and salary sacrificed Meals and salary sacrificed EFLE benefits) can and will only be valued using the Actual method in this workpaper.
Making your Entertainment Valuation Method Election for Meals and EFLE
The Entertainment (All) workpaper uses the Actual method for all non-salary sacrificed Meals and EFLE Entertainment, by default, but if you want to elect to use either the 12 Week or 50/50 Split method for Meals or the 50/50 Split method for EFLE then you can make an election in easyFBT for this.
To make these elections you use the Elected Entertainment Valuation Method drop-down selectors that are available within the Entertainment tab located within the Workflow Manager > Setup > Properties and Settings feature.
Making these elections will then recalculate your Entertainment (All) workpaper to use your elected entertainment valuation methods.
Treatment of the new $5,000 Rebatable GUTV Meal Entertainment Cap on Salary Sacrificed Meals/EFLE Entertainment for FBT Rebatable employers
FBT Rebatable employers now have a new $5,000 Rebatable GUTV Meal Entertainment cap for salary sacrificed Meals and EFLE entertainment benefits. This is automatically calculated within the Aggregate Non-Rebatable Amount, Amount of Rebate and the FBT Payable calculations on the ATO Fringe Benefits Tax Return and also within the Aggregate Non-Rebatable Amount FBT Reconciliation reports.
If you have any questions, need any help or want to provide your feedback on the new Entertainment (All) workpaper or the new Rebatable GUTV Meal Entertainment cap please contact us via either the Help link on our website or email us at firstname.lastname@example.org.