• Property benefit exemption

    Where food or drink is provided by a tax-exempt body and it is not tax-exempt body entertainment, it will be a property benefit. Where the food and drink (which is a property benefit) is provided to, and consumed by, the employee on business premises on a working day, it is exempt from FBT. However, the exemption only applies to the food and drink provided to an employee. Food and drink provided to an associate of an employee in these circumstances is still subject to FBT.

      Last modified: 17 Jul 2012QC 21998