ASPIA Supports Budget Cap on Expenses

20 May 2015

The Australian Salary Packaging Industry Association (ASPIA) has welcomed the Federal Government's move to provide certainty around arrangements regarding salary sacrificed meal, entertainment and entertainment facility lease expenses.

Chairman of ASPIA, Leigh Penberthy, said that the Association has long been an advocate for introducing a cap:

"We have been seeking the introduction of an annual cap for some time now, and have raised it several times in submissions and discussions with various Ministers and Treasury official over the years, so it was pleasing to see a cap being proposed.

"We have some concerns however with the value of the cap that has been announced, as it appears it will have a significant impact on the take-home-pay for employees who can least afford it".

For example, under the proposed measures, the average person working in Public Health or in a Not for Profit or a Charity who is earning the average Australian income of $76,767.60* and packaging these benefits through an ASPIA member will have their take annual home pay effectively reduced by $1729.83.

                                                                  Net Cash

              With current caps                         60,021.36

              With proposed caps                      58,291.53

              Net Loss                                     $1,729.83

Mr Penberthy said that there are some other changes proposed that will have an impact on people working in the health and NFP sectors:

"It is proposed that any entertainment benefits exceeding the new cap are to be counted towards the existing general cap. Further, all entertainment benefits are proposed to be included as reportable fringe benefits. These measures would affect people working in areas that both the government and opposition agree are so vital to the health and vitality of our economy".

The proposed measures are intended to be effective from 1 April 2016 and will be subject to final outline of the proposed legislation.

ASPIA will work with the Federal Government and their agencies over the coming weeks to ensure that the final draft legislation is consistent with the Government's aim and intent and remains fair and equitable.

* Source: http://www.abs.gov.au/ausstats/[email protected]/mf/6302.0

                                                     

To download the Media Release please click here.







 


News Archive

AAA Media Release - 8 October 2015

AAA Media Release 22 May 2015

Media Release - 20 May 2015

ACSA Media Release 12 May 2015

Media Release 6 November 2013

Media release 9 September 2013

Media Release 5 September 2013

Second Media Release 5 September 2013

Media Release 3 September 2013

Second Media Release 3 September 2013

Media Release 30 August 2013

Media Release 20 August 2013

Media Release 15 August 2013

Media Release 7 August 2013

Media Release 6 August 2013

Media Release 1 August 2013