15.14 Taxable value of recreational entertainment

The taxable value of the recreation component of tax-exempt body entertainment is generally the same as the cost of the activity; for example, the entry fee for a golf day.

Where you provide tax-exempt body entertainment by hiring or leasing entertainment facilities, the taxable value is the cost of the activity, unless you elect to use the 50-50 split method.

You cannot elect to use the 50-50 split method if you provide the benefit under a salary packaging arrangement on or after 1 April 2016.

50-50 split method

You can elect that the total taxable value of tax-exempt body entertainment fringe benefits arising from the use of entertainment facilities you hire or lease is 50% of all entertainment facility leasing expenses..

You must decide to use the 50-50 split method for entertainment facility leasing expenses no later than the day on which you are due to lodge your FBT return with us or, if you do not have to lodge a return, by 21 May.

There is no need to notify us of the method you chose as your business records are sufficient evidence of this.

    Last modified: 09 Aug 2016QC 17811