The taxable value of tax-exempt body food and drink entertainment fringe benefit is the actual expenditure incurred by entities for the benefit of employees, or an associate of an employee. In calculating the taxable value of a tax-exempt body entertainment fringe benefit, there is no reduction for contributions that are made by employees.
If it is not possible to easily determine the actual expenditure for each employee, a 'per head' basis of apportionment may be used.
Alternatively, an election can be made to value the food, drink and associated accommodation or travel as a meal entertainment fringe benefit. If this election is made, the per head basis of apportionment is not relevant.