Currently public hospitals, ambulance services, health promotion charities and other public benevolent institutions can provide unlimited FBT exempt meal entertainment and similar benefits to their employees. In light of concerns that this concession is being abused, with benefits including holidays, cruises and weddings, the government is proposing to cap the benefit at $5,000 (on a grossed up basis). This is anticipated to produce additional revenue of $295 million over the next four years.

On the more positive side, for small business, the government will extend the FBT exemption for work-related portable electronic devices such as smart phones, laptop computers and tablets so that it applies to more than one device.