Our SPA Card is a living expenses card which allows employees to easily pay for various items under their applicable Fringe Benefits Tax cap. This is used similarly to a normal debit card but using pre-tax dollars! This is a simple and easy way for employees to pay for their salary packaged items.

Living expenses are everyday expenses that are incurred by you or your family such as electricity and phone bills, council rates, groceries, household expenses, clothing and shoes, and private travel (domestic and overseas).

You can use your card with Tap & go, or insert the chip and pay using your PIN. You can also use it when paying third parties and to do so, simply use your 16 digit card number to make the transaction.

NB: No other funds can be transferred to your salary packaging cards, other than those predetermined and agreed upon by your Salary Packaging Administrator and your payroll officers.

It is recommended that you have zero balance at the end of the FBT year (March 31). This means that you are eligible to salary package the full benefit amount in the following year. Please contact SPA for further details. We can also assist you in spending remaining funds on your card.

You can access your general living expenses by accessing internet banking.

The card can be used at any grocery store, restaurant, electronics store, florist, you name it! As long as the expenses remain within the allocated amount, spend away!

Yes! You can use it for online purchases in any capacity.

No. You can use the card for as little or as much as you want. The card will be subject to EFTPOS minimums if enforced at particular stores or restaurants.

From the date of your termination, you will have a certain period of days to spend the funds on your card.

Meal and entertainment cards are available to employers that qualify as not-for-profit (an entity set up for the benefit of members, e.g. a Government Health Department) or a Public Benevolent Institution (charity for tax purposes, e.g. Royal flying doctor service).

In actual dollar terms, the employee can package $2650 per annum. This can be spent on meals, accommodation and function hire using pre-tax dollars. Any employee of a qualified employer can access the meal and entertainment card.

Yes. There are rules around how much can be used, who qualifies to use the card and most importantly rigid ATO reporting requirements, but if your employer’s status qualifies for this approved tax benefit then the employees can access the tax savings.

Being able to provide $2650 of an employee’s salary in a tax-free method means the employee is financially better off. At a 30% tax rate, the tax saving is $795. Salary Packaging Australia can provide this benefit to employers at no cost.

The card can be used for:

• Venue hire
  • Events such as 21^st birthdays or engagements fall within the definition.
• Holiday accommodation
  • From a five-star resort to a caravan park, almost anything satisfies the accommodation rule
  • That ship cruise you always wanted to go on.
• Meals
  • Café, restaurant or hotel satisfy the criteria
• Food and Beverages
  • Consumed at special occasions such as weddings and birthdays also satisfies the criteria.
• Family and Friends
  • They can be included in the above expenditure

But as we know with any tax legislation the rules must be followed, therefore you cannot include:

• Takeaway food or bottle shop purchases
• Regular groceries
• Hiring outside of meal and venue hire e.g. an Elvis impersonator
• Movies or musicals
• Flights to and from your five-star resort.

Yes, your annual holiday can be paid in tax-free dollars. You can use the benefit overseas but be mindful of any additional costs due to currency exchange.

The meal and entertainment benefit accrues to employers that either have a not for profit status or qualify as a charitable organisation. Due to these classifications, the tax system allows the employer to add value and incentive to their employee’s wages. This adding value is achieved by using the Fringe Benefits Tax legislation. The reality is that the tax system allows it and therefore the employee is within their rights to exercise the benefit.

The $2650 benefit is reportable. This means that a reportable fringe benefit will appear on your group certificate in the amount of $5000. You will not pay tax on this $5000 but it will increase your assessable income. This may impact on your repayment of the debt. We suggest you contact your financial advisor for advice where required.