A board fringe benefit arises where the employee is entitled to have accommodation provided and:
- there is an entitlement under an industrial award or an employment arrangement to be provided with at least two meals per day
- the meals are supplied by the employer or an associate of the employer
- the meal is prepared by the employer or an associate of the employer on business premises or adjacent to business premises
- the meals are supplied on the business premises of the employer or an associate of the employer.
Meals provided to family members of the employee and living with the employee are also treated as board fringe benefits.
Identifying board fringe benefits
There are a number of avenues available to identify board fringe benefits including:
- ask work area managers whether board fringe benefits have been provided on any business premises
- review the fixed asset register for details of properties that indicate that board fringe benefits are provided on those premises (for example, if a property has an in-house commercial kitchen and sleeping quarters, this is an indicator that board fringe benefits may be provided)
- review prior year FBT returns to identify details of board fringe benefits that were provided in prior FBT years.
Calculating taxable value of board fringe benefits
The taxable value of board fringe benefits is $2 per adult per meal and $1 per child. For this purpose, an adult is a person who has attained an age of 12 years before the beginning of the FBT year.
A log of meals provided to employees should be maintained so that the taxable value of board fringe benefits can be calculated.