• 15.3 Is the benefit entertainment?

    To work out whether the benefit provided is entertainment, you need to consider the circumstances in which the benefit was provided. Tax-exempt bodies need to look at the same factors as income tax paying bodies in order to decide if the benefit is entertainment. For information about working out whether a benefit is entertainment, refer to sections 14.1, 14.2 and 14.3 of Fringe benefits tax and entertainment.

    What to do next

    If the benefit is...

    Then refer to section...

    entertainment by way of food or drink

    15.4

    recreational entertainment

    15.12

    not entertainment,

    15.17

    15.4 Do you provide food or drink that is entertainment?

    If you provide entertainment by way of food or drink, take the following steps and actions.

    Step

    Action

    Section Reference

    1

    Consider whether an exemption applies.

    15.5

    2

    If no exemption applies, decide whether or not the entertainment is a tax-exempt body entertainment fringe benefit.

    15.6  

    If the benefit is not tax-exempt body entertainment, it may be a property, expense payment or residual fringe benefit.

    15.17

    3

    If the benefit is a tax-exempt body entertainment fringe benefit, decide whether the benefit will be valued under the meal entertainment fringe benefit rules.

    15.10

    4

    Keep the appropriate records.

    15.15

    5

    If required, report an amount on the employee's payment summary.

    15.16

    See also:

    • section 15.7 – for examples of how the valuation rules apply.
      Last modified: 09 Aug 2016QC 17811