• 15.8 FBT implications of tax-exempt bodies providing food and drink

    The following table summarises the FBT implications of tax-exempt bodies providing food and drink through a number of examples.

    Circumstance in which food or drink provided

    Meal entertainment
    Yes/No

    Fringe benefits tax arises?

    For
    employees

    Yes/No

    For
    associates

    Yes/No

    For
    clients

    Yes/No

    At a social function - eg a staff Christmas party (either on or off business premises)

    Yes

    Yes

    Yes

    No

    In an in-house dining facility - not at a social function

    Yes/No*

    No

    Yes

    No

    In an in-house dining facility at a social function

    Yes

    Yes

    Yes

    No

    Morning and afternoon teas, and light lunches (on business premises)

    No

    No

    Yes

    No

    At a social function or business lunch (either on or off business premises)

    Yes

    Yes

    Yes

    No

    Employee on business travel overnight and dining by themselves or with an employee, employee of an associate or client who is also on business travel overnight, regardless of who pays

    No

    No

    Yes

    No

    Employee on overnight business travel dining with an employee not on overnight business travel - employer pays for all meals

    Travelling employee's meal

    Non-travelling employee's meal

     
     
     
     
     


    No

    Yes

     
     
     
     
     
     

    No
     

    Yes

     

     

    Employee on overnight business travel dining with a client who is not on overnight business travel

    Travelling employee's meal

    Client's meal

     
     
     
     
      

     

    No

    Yes

     
     
     
     
      

     

    No

     

     
     
     

     

     

     

     No

    *Depending on what is provided, the food or drink may or may not amount to meal entertainment. However, if you provide full hot meals at an in-house dining facility (not at a social function), this will be a property benefit and the property exemption will apply (refer to section 15.7).

      Last modified: 09 Aug 2016QC 17811