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  • Morning tea: Opening of a new office

    A federal government department holds a morning tea to celebrate the opening of new departmental premises. The morning tea is provided on a working day and consists of biscuits, cake, tea, coffee and soft drink. Attendees include employees of the department, clients, the general public and the minister responsible for that federal government portfolio.

    Is entertainment being provided?

    No.

    Employees and the Minister

    Does an exemption apply?
    Yes. The food or drink provided to the Minister and employees of the department is exempt from FBT because it is provided and consumed on a working day on the business premises.

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

    Food and drink provided to clients and general public

    There is no FBT on benefits provided to clients or the general public.

    GST credits
    The department can claim input tax credits for the food and drink provided to clients and the general public.

      Last modified: 20 Dec 2017QC 19918