Wealthy professionals in the medical industry , including surgeons and hospital executives have been caught out using a tax loophole to pay for lavish personal items . Rich hospital workers , businessmen and charity leaders are using the tax break to pay for high-end holidays , extravagant meals and even their children 's weddings . The meal and entertainment concession allows employees to spend an uncapped amount of money on food , entertainment and leasing facilities , with some members paying for cruise tickets using the privilege . Wealthy professionals in the medical industry , including surgeons and hospital executives have been caught out using a tax loophole to pay for lavish personal items . The concessions , or credit cards as they are known , allow employees of certain salary packages to purchase items such as mortgage repayments or vehicle expenses from pre-tax income , thereby reducing income tax payable . The federal government has come under pressure from some not-for-profit agencies , who say the state could save astronomical amounts of money over the coming years if they were to get rid of the concessions . According to a report submitted by Save The Children Australia , the exemption from fringe benefits is estimated to cost the Treasury up to $ 600 million a year over the next few years . Treasury has estimated that it will cost over $ 2 billion in lost tax over the next four years . The concessions , or credit cards as they are known , allow employees of certain salary packages to purchase items such as mortgage repayments or vehicle expenses from pre-tax income , thereby reducing income tax payable . 'The Productivity Commission has provided examples of how $ 2,200 restaurant meals and $ 40,000 weddings could be paid for from pre-tax income to avoid significant amounts of tax that would otherwise be payable on the relevant employee ’ s income , ' the Save The Children Australia report said . 'The benefit of this concession is also not evenly spread among NFP ( not-for-profit ) employees , tending to be more highly utilised by eligible employees on higher salaries . ' Although Save the Children currently benefit from this concession , they told Daily Mail Australia that they support its removal . They hope the funding will be re-directed to support vulnerable children . The concession was initially offered up to not-for-profit organisations as an incentive for new employees however over the years it has become a loophole for the rich to enjoy an extravagant lifestyle . The concession was initially offered up to not-for-profit organisations as an incentive for new employees however over the years it has become a loophole for the rich to enjoy an extravagant lifestyle . Speaking to The Australian Financial Review , World Vision Australia chief executive Tim Costello said he believes lower paid workers are shunned in the fringe benefit concession , allowing the rich to take a large chunk of the benefits . 'The concessions enable huge benefits to the richest 1 per cent working in the sector while offering minimum benefits to the lowest paid sector . ' According to a Treasury report , the concession will cost $ 465 million this year alone in lost tax and that figure will rise by nearly $ 100,000 by 2018 .
Surgeons and hospital executive are using a tax exemption for a lavish life . The Fringe Benefits Tax is used to pay for holidays , cars and mortgages . Their tax is likely to cost the state $ 2b in lost tax in four years . A pension The tax ##payers supports the removal of the benefit . They say the tax could save $ 600 m in one year .