FBT Entertainment Checklist
Taxable employer / Tax-exempt bodyCircumstances in which food and drink are provided / ME
(Y or N) / R* (Y or N) / FBT (Y or N) / Deduction (Y or N) / FBT (Y or N)
Food and drink consumed on employer's premises
- Consumed by employees:
- at a social function
- in an in-house dining facility — not at a social function
- in an in-house dining facility — at a social function
- morning and afternoon teas and light lunches
- Consumed by associates:
- at a social function
- in an in-house dining facility — not at a social function
if N / Y
- in an in-house dining facility - at a social function
- morning and afternoon teas and light lunches
- Consumed by clients
- at a social function
- in an in-house dining facility — not at a social function
if N / N / N / Y / N
- in an in-house dining facility — at a social function
- at morning and afternoon teas and light lunches
Note: * In relation to reportable fringe benefits, the table includes a column (R) indicating whether the benefit is ‘reportable’. Reportable fringe benefits received by associates of the employee are reportable to the employee.
Key
ME Meal entertainment
R Reportable fringe benefit
Y Yes
N No
Y/NDepending upon what is provided, food or drink may or may not amount to the provision of meal entertainment.
#An income taxable employer has the option to claim a deduction for the cost of the meal and include $30 in their assessable income — s 32–70 of the Income Tax Assessment Act 1997 (ITAA 1997).
CPDContinuing professional development
Circumstances in which food and drink are provided / ME
(Y or N) / R* (Y or N) / FBT (Y or N) / Deduction (Y or N) / FBT (Y or N)
Food and drink consumed away from employer's premises
- At a social function or business lunch:
- by employees
- by associates
- by clients
Alcohol
- Employee travelling — wine accompanying evening meal
- Alcohol provided at the conclusion of a CPD seminar with finger foods
Food and drink consumed by employees while travelling
- Employee travelling and dining alone
- Two or more travelling employees dining together
- Employee travelling and dining with client
- As no 3 above, except employer pays for all meals:
- employee's meal
- client's meal
- Dining with client who is travelling separately
- Dining with employee not travelling:
- only travelling employee's meal provided
- both employees’ meals provided
—travelling employee's meal / N / N / N / Y / N
—non-travelling employee's meal / Y / N / Y / Y / Y
- Dining with client who is not travelling:
- only employee's meal provided
- employee’s and client’s meal provided
—employee's meal / N / N / N / Y / N
—client's meal / Y / N / N / N / N
Employees dining with other employees of the same employer or with employees of associates of
the employer
- Employee entertains another employee and is subsequently reimbursed by the employer
- Employee entertains an employee of an associated company of the employer and is subsequently reimbursed:
- employer's employee (expense payment)
- associate's employee (property benefit)
Meals consumed by employees while attending a seminar
- Provided incidental to an eligible seminar not held on the employer's premises
- Light breakfast provided at a CPD seminar that is not an eligible seminar
- Light refreshments including moderate amount of alcohol provided immediately after a CPD seminar that is not an eligible seminar
Meals consumed by employees at promotions
- Function not held on employer's premises and is open to the general public
Meals provided under an arrangement
- Client does not facilitate or promote an arrangement where its employee is taken out to dine by another employer:
- client's employee
- employee of other employer
Use of corporate credit card
- Employees dine together at a restaurant and the meal is paid for with corporate credit card
Restaurant discount cards
- Employee who holds a restaurant discount card entertains a client:
- employee: ½ total discounted price
- client: ½ total discounted price
Meals for accompanying spouses
- With employee travelling on business and employer pays for all meals:
- employee
- spouse
Food or drink provided by tax-exempt bodies
- 'Non-deductible' meal entertainment provided to employees, whether or not on employer's premises
- Meals provided to employees in an in-house dining facility
- Non-meal entertainment provided to employees on employer's premises
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