End of FBT Year FAQs
End of FBT Year FAQs
The end of Fringe Benefits Tax year (also referred to as end of FBT year or EOFBTY) is an important time for the salary packaging world. It’s our equivalent to the end of financial year.
To help your EOFBTY run smoothly and ensure your salary packaging is in order, we’ve compiled a list of our most frequently asked questions from SA Government employees.
What happens if I reach my Salary Packaging or Meal Entertainment limit early?
Maxxia will keep track of your salary packaging account throughout the year and will notify you if you reach your cap limit for any benefit earlier than expected.
If this happens, we will cease your deduction and postpone any further payments on those benefits until the new FBT year, which begins on 1 April 2024. This won't affect payments to benefits which fall outside the cap limit that you may be eligible for, such as additional superannuation, laptops and work-related expenses. (For those customers eligible to salary package these items).
The most common reason why you may reach your limit early is due to salary packaging expenses that include GST, such as retail purchases. If you allocate your full cap to Mortgage, Rent, Loan or the Maxxia Wallet, you’ll need to ensure you salary package the full cap each year and avoid unexpectedly reaching your cap early.
Is there anything I cannot buy with my Meal Entertainment funds?
Meal Entertainment cannot be used for purchasing the following items:
- Meals or drinks from venues on-site (at your workplace)
- Alcohol, unless it is consumed when dining out with friends or family
- Groceries
- Takeaway and home delivered meals, including Uber Eats or other delivery apps
What if I don’t use my full Salary Packaging or Meal Entertainment limit within the FBT year?
If you don't use your full salary packaging limit before midnight 31 March 2024, you will not lose this money.
The balance will stay on your account for you to use in the new FBT year, which begins on Monday 1 April 2024. However, your cap limit resets each FBT year. Any funds left in your account from the previous FBT year will form part of your new cap, which means you may lose the potential tax savings on the cap limit you have not used from the previous FBT year.
For example, if you work in the Health sector and have $100 unspent from the 2023/24 FBT year, the maximum new deductions for capped benefits for the 24/25 FBT year will be $8,910, rather than $9,010.
So, make sure that you maximise your capped benefits and aim to spend your remaining funds before the EOFBTY!
Which expenses can I salary packaging on top of the cap limits?
Depending on your employer, there may be benefits you could salary package that don’t impact the Living Expenses or Meal Entertainment caps.
These could include:
- Disability / income protection insurance premiums
- One laptop computer, iPad (or similar tablet) and mobile phone per FBT year.*
- Professional memberships
- Self-education expenses
- A novated lease and more!
*One item claimable per FBT year as long as the items claimed are primarily used for work during the FBT year (1 April to 31 March). Benefit not available to South Australian Police (SAPOL) employees.
It's worth finding out if there are other benefits you could salary package in case you're missing out on more potential savings. You should speak with your employer to learn more about what benefits you are eligible for.
When will I have my final Maxxia Wallet card payment?
Remember that payments to the Maxxia Wallet card stop one pay early each FBT year.
To provide you with extra time to spend your remaining balance before the end of the FBT year, the Maxxia Wallet card annual budget is spread over one less pay each FBT year, so no Maxxia Wallet payment will be made from your last pay in March.
A 'Your Benefit Summary' email will be sent to you to confirm when your deduction has stopped for the FBT year.
Your cap limit does not change - it's the same annual budget, just over one less pay.
When do I need to spend my Maxxia Wallet card balance?
Sunday 31 March 2024 is the final date for spending funds on your Maxxia Wallet card, so please spend your balance before then. Some vendors and financial institutions may take a few days to process transactions, so make sure you spend your balance before Sunday 31 March 2024. Maxxia is not responsible for any delays in processing by vendors or financial institutions.
If you have any unspent funds remaining on your Maxxia Wallet card at midnight 31 March 2024, you will not lose this money.
The balance will stay on the card for you to spend in the new FBT year, which begins on Monday 1 April 2024. However, your cap resets each FBT year. Accordingly, these funds will form part of your new cap, which means you may lose the potential tax savings on the cap limit you have not used from the previous FBT year.
Here are some ideas for helping to reduce the balance on your card:
- Give your other cards a rest and use your Maxxia Wallet card as much as you can throughout January, February, and March!
- You can use your Maxxia Wallet card to buy a gift voucher which can then be used at a later date, while still reducing your balance. Note: this applies to Living Expenses only.
- Why not pre-pay some bills? Another simple way to reduce the balance on your card as much as possible before 31 March. Note: this applies to Living Expenses only.
Contacting Maxxia during the EOFBTY
While we aim to do our absolute best, the EOFBTY can mean extended call-wait times. We recommend the below options for keeping in touch with us during this time.
- Check out more info at sagov.maxxia.com.au/fbt-year-end/government-south-australia
- View your account via Maxxia Online
- Chat with us on LiveChat
- Email us at [email protected] or for novated lease enquiries [email protected]
- Follow us on Facebook and Instagram to stay up to date with the latest information.
This material is general advice only. It does not take into account your particular/personal objectives, personal financial situation or personal financial circumstances. Consider if this product is right for you. You should read the Product Disclosure Statement (PDS) for this product before making any decision on the new Card (Maxxia Wallet). You can read the PDS here. The Target Market Determination for this product can be found here.
Maxxia Wallet is a Mastercard and is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131 pursuant to license by Mastercard Asia/Pacific Pte. Ltd. Maxxia Pty Ltd (Maxxia) ABN 39 082 449 036 is an Authorised Representative of EML Payment Solutions Limited Australian Financial Services Authorised Representative number 000278683 and participates in the promotion and distribution of the Card.