Light Refreshments/ Meals
– On or off premises / · Morning/afternoon teas
· Take away coffees
· Finger foods during trainings/meetings
· Light meals on premises when working overtime
· / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / Not entertainment for any participants except for associates of employees.
Social Functions, Graduation Dinners Service Awards / · All social functions on or off premises. Includes the cost of venue/equipment hire
· Includes Christmas parties
· Retirement long service award functions / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2057
No FBT / Entertainment /Catering (Visitors/Clients)
Input Tax ‘I’ / Social events are entertainment wherever they are held. A specific exemption applies to a particular employee who is having a special achievement recognised.
Meals Off Premises (including on-campus cafes) / · Light lunches
· Restaurant meals
· Meals whilst travelling during business hours (whilst not away overnight) / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2022
(Domestic travel )
2012 or 2023
(Overseas travel)
No FBT / Meals (up to ATO rates)
Unacquitted – Per Diem
10% GST ‘C’ / 2057
No FBT / Entertainment /Catering (Visitors/Clients)
Input Tax ‘I’ / Meals off premises (including on-campus cafes/food vans) are entertainment except where a travelling staff member is away on University business overnight.
Recreational Entertainment / · Sporting events i.e. cricket or football
· Cruises/tours (whether part of a conference package or not)
· Staff activity functions i.e. golf days/fun team building days / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2057
No FBT / Entertainment /Catering (Visitors/Clients)
Input Tax ‘I’ / Recreational entertainment is a reportable fringe benefit. Note that benefits provided to an associate (family member) should be ‘attached’ to the employee they are connected with.
Graduations/Functions Catering – on or off premises / · Graduations - finger food/drinks (no alcohol)
· Same rules apply for overseas graduations Alumni functions. No sit down meals. / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / No FBT for employees where the entertainment is merely incidental to their employment activities.
Public Seminar > 4 Hours Meals/Drinks / · Conferences
· Single day-long seminars
· Must be 4 hours or more, excluding breaks
· Not restricted to employees / 2014
(Overseas Conference)
2006
(Domestic Conference)
No FBT / Conference Registration
(Overseas)
(Domestic)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2014
(Overseas Conference)
2006
(Domestic Conference)
No FBT / Conference Registration
(Overseas)
(Domestic)
10% GST ‘C’ / 2014
(Overseas Conference)
2006
(Domestic Conference)
No FBT / Conference Registration
(Overseas)
(Domestic)
10% GST ‘C’ / Specific exemption for staff where the Seminar exceeds 4 hours.
Please also refer to the notes at the bottom of page 2.
Category / Description / Employee / Natural Account / GST Code / Associates* (Family
and Friends) / Natural Account / GST Code / Travelling Employee / Natural Account / GST Code / Non-Employee (Clients, Students) / Natural Account / GST Code / Comments
Training 4 hours with Meal
– Off Premises / · Off-site planning days
· A day’s training on a new computer system
· Allows a sit down meal (no alcohol)
· Staff-only – must be 4 hours or more, excluding breaks
· Must be off premises / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2057
No FBT / Entertainment /Catering (Visitors/Clients)
10% GST ‘C’ / The entire training session must be off premises for this exemption to apply.
Training 4 hours with Meal
– On Premises / · Planning day/Training held on University premises with sit down meal / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2057
No FBT / Entertainment /Catering (Visitors/Clients)
Input Tax ‘I’ / Sit down meals held on University premises will be entertainment for local staff.
Professional Development Seminars with Light Drinks/Snacks - Off premises / · Professional Development Seminars with drinks/finger food / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2051
No FBT / Light Meals / Snacks (Non FBT)
10% GST ‘C’ / 2057
No FBT / Entertainment /Catering (Visitors/Clients)
10% GST ‘C’ / Not entertainment.
Short Training Session with Sit Down Meal / · Seminar/information session followed by a sit down meal / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2050
FBT / Entertainment / Catering (FBT)
10% GST ‘C’ / 2057
No FBT / Entertainment /Catering (Visitors/Clients)
Input Tax ‘I’ / Entertainment, not covered by any other exemption.
GIFTS – University purchase card may NOT be used to purchase gifts for staff of the University, except in special circumstances where approved, in writing by the relevant Authorised Officer (refer to Note 3 below)
Gifts provided to employees:
- Value under $300 (incl. GST)
- Value over $300 (incl. GST) / · Christmas hamper, bottle of wine, gift voucher / 3228
No FBT 2050 FBT / 10% GST ‘C’ / N/A N/A / N/A N/A / N/A
N/A / Taxation Accountant to apply FBT to amounts over $300 (incl. GST).
Notes:
1. Goods & Services Tax (GST): GST coding is for Basware, the University’s invoice approval system. Please also note that the tax code can be ‘C’ (10% GST) only if GST has been charged to the University and we hold a valid tax invoice for the acquisition. Otherwise the full amount is to be coded to ‘I’ Input Taxed.
2. Fringe Benefits Tax (FBT) and GST interaction: Where an event is subject to FBT, the GST inclusive cost must be apportioned between employees/associates and non-employees on a per head basis
Ø The employees/associates’ portion is subject to FBT and the GST is claimable - account code is 2050 with GST code ‘C’ (10% GST)
Ø The non-employees’ portion is not subject to FBT, the GST is not claimable and the GST inclusive amount to be coded to 2051 or 2057 with GST coding ‘I’ (Input tax – 0% GST). See ATO GSTR 2001/3, para 96-100, example 19.
Where an expense is subject to FBT for the employee, the same expense for a client/visitor will be ‘I’. Where an expense is not subject to FBT for the employee the same expense for a client/visitor will be ‘C’.
3. Please also refer to the Authorisation of University Expenditure policy and procedure and the University Purchasing Card Policy and Procedure.
4. As a guide, if you spend $110 (inc GST) on a social function then FBT of $112.13 will also be incurred. Therefore the total expense will be $222.13 ($110 + $112.13)
Flinders University – Meal & Entertainment Examples
Light Refreshments/Meals (on or off business premises) – Below examples are NOT SUBJECT TO FBT
- My manager buys me a coffee and almond croissant from Myrtle & Mae to have in the office.
- My manager buys me a coffee and muffin from Myrtle & Mae to have at the tables out the front of the caravan or in the Flinders Laneway while having a business meeting.
- A sandwich platter, juice and muffins are bought from the Wholefoods shop for a morning/afternoon meeting, training session, working lunch or for working on the weekend.
- I am attending a conference in the city and buy a coffee and water prior to the start of the conference.
- What happens if I invite someone for coffee or a light lunch while travelling? I’m travelling in Paris and I invite a French academic out for brunch. No FBT as you are travelling overnight and the coffee/light lunch is seen as being sustenance rather than for entertainment purposes.
Social Functions, Graduation Dinners & Service Awards - Below examples are subject to FBT
- The VC retires from the University and has a retirement cocktail function on Friday evening at the University. The cost of the drinks, finger food and canapes is subject to FBT to all employees who attend (except for the VC).
- Any social function on or off premises with food and drinks (including alcohol, caterers, waiters/waitresses, entertainment provided etc.)
Meals off Premises (including on-campus cafes)
- My manager takes me and a client out to a business lunch at a restaurant (or similar venue) in the city. FBT will apply to the manager and employee but not the client.
- My manager takes me out to lunch at one of the Flinders Laneway vans. We eat at the tables provided. The lunch is not part of a business meeting or training. FBT will apply to both employees.
- I travel from Adelaide to Melbourne for the day and return to Adelaide that evening. I buy a light lunch on my University purchasing card. FBT applies as the employee is not considered to be ‘travelling on business’ by the ATO. The ATO state that for an employee to be travelling they must be away overnight. Only where an employee is away overnight will FBT not apply.
Recreational Entertainment - Below example is subject to FBT
- My manager organises for our team to attend an offsite team building day playing golf in the morning followed by a lunch. This is a purely recreational event therefore FBTable.
- An employee attends a finance conference in Florence, Italy. Part of the conference package is a renaissance art tour around Florence. The tour is separately identifiable as a being entertainment and cannot fall under the otherwise deductible rule, therefore subject to FBT.
Graduations/Functions Catering – on or off premises
- Flinders University employees are encouraged to attend graduation functions where they consume finger food, juice and soft drink. No FBT applies as the finger food and drinks are incidental to the graduation function.
Public Seminar > 4 hours meals/drinks
- Flinders University in the city runs a public seminar that runs for 5 hours with a 45 minute lunch where a sit down hot meal is provided with drinks. University employees attend along with members of the public. No FBT applies as the event is for greater than 4 hours excluding breaks.
Training > 4 hours with a meal – off premises
- A University finance employee attends the annual CPA (Certified Practicing Accountants) Congress, held at the convention center in Adelaide. The congress runs for 3 full days. The employee attends a full day where breakfast, morning tea and lunch are provided. No FBT applies in this instance as this is a continuing professional development (CPD) event where the employee is updating or improving their knowledge relevant to their area of work, the food and drink is incidental to the conference and provided for sustenance.