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  • Morning tea provided on the business premises

    A government agency hosts an annual morning tea to thank external consultants who have provided services to the organisation. Finger food, tea, coffee and soft drinks are provided on the business premises of the government agency on a weekday. A number of employees attend the morning tea to personally thank the consultants for their assistance throughout the year. The cost per head is $20.

    Is entertainment being provided?
    No. A property fringe benefit arises.

    Employees

    Does an exemption apply?
    Yes. The property exemption for food and drink provided and consumed on business premises will apply to the food and drink provided as it is consumed by employees on a working day at the work premises.

    Input tax credits
    The organisation can claim input tax credits for food and drink.

    Consultants

    There is no FBT on benefits provided to consultants.

    Input tax credits
    The organisation can claim GST input tax credits for food and drink provided.

      Last modified: 20 Dec 2017QC 19918