The Eastern Health Entertainment Benefit Card gives you instant access to your own pre-tax dollars to pay for your dining out, taxi charges and holiday expenses. An entertainment benefit card is an unrestricted card that can be used within Australia or Overseas. It’s as simple as using a credit card, just swipe.
How does it work?
- Nominate: Choose how much you would like allocated each fortnight from your pre-tax salary to your Entertainment Benefit Card.
- Allocate: Each fortnight, we will transfer your nominated amount straight onto your Entertainment Benefit Card. Deposited onto your card the following business day after your pay date.
- Spend! All you have to do is present the card for payment for dining, accommodation, taxi’s and holiday expenses.
You can use your Meals and Entertainment Card / Entertainment Benefit Card when dining in at places such as restaurants, cafés, pubs, bistros or hotels. You can also use it at many businesses offering accommodation, transportation and travel agency services. (Please note that booking flights may be done through a travel agent but not direct through the airline itself.) You cannot use it for sustenance or refreshment. The ATO guidelines make this distinction.
Some quick tips for using your Meals and Entertainment Card
You can only use your Meals and Entertainment card when dining in. This means take away meals, coffee and snacks, as well as food and drink purchased at the movies, concerts, sporting events and theatres are not included as they are deemed by the ATO to be sustenance and refreshment.
Whether or not you can use your Meals and Entertainment Card / Entertainment Benefit Card will depend on the merchant classification a particular outlet has used. For example, you may not be able to use your card at a café located in a retail shop, if the cafe is classified as a furniture shop
Your Meals and Entertainment Card / Entertainment Benefit Card cannot be used for BPAY.
Reportable fringe benefits amounts
Packaging towards the tax-free entertainment cap will result in a Reportable Fringe Benefit Amount (RFBA) on your annual PAYG summary.
RFBAs do not affect your income tax liability but the ATO will take them into account when determining certain other obligations and entitlements. For more information in this regard please visit the ATO website.
RFBAs and your HECS/HELP Loan
Your HECS/HELP repayments are based upon your ‘HELP Repayment Income’, which includes any Reportable Fringe Benefit Amount.
How will my RFBA affect my HECS/HELP repayments?
Eastern Health Payroll department does not take RFBAs into account when calculating your periodic HECS/HELP deductions throughout the income tax year. This means that if you lodge an annual tax return containing an RFBA you could be faced with an additional lump-sum HECS/HELP payment requirement when you receive your ATO notice of assessment for the relevant year.
To avoid this, you can ask Eastern Health Payroll department to withhold additional HELP contributions.