The Government will tighten the fringe benefits tax (FBT) exemption that applies to the private use of business property on an employer’s premises by excluding meals under a salary sacrifice arrangement, with effect from 7.30 pm (AEST) on 13 May 2008. The measure reduces the FBT concession and tax expenditure associated with property provided on the employer’s business premises. Existing balances on meal cards as at 7.30 pm (AEST) on 13 May 2008 will remain eligible for the FBT exemption, provided they are used by 31 March 2009. Any supplementation of existing balances after 7.30 pm (AEST) on 13 May 2008 will be subject to FBT.
For a copy of the Treasurer's press release, No 2008/48, 13 May 2008, go here