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  • Entertainment and fringe benefits

    The provision of entertainment means the provision of:

    • entertainment by way of food, drink or recreation
    • accommodation or travel in connection with, such entertainment.

    Entertainment includes, for example:

    • meals and drinks, cocktail parties and staff social functions
    • sporting or theatrical events, sightseeing tours and holidays
    • entertaining employees and non-employees (for example, clients) over a weekend at a tourist resort or providing them with a holiday.

    Recreation includes amusement, sport and similar leisure pursuits (for example, a game of golf, theatre or movie tickets, a joy flight or a harbour cruise).

    Providing entertainment may give rise to various types of fringe benefits. For example:

    • the cost of theatre tickets purchased by an employee and reimbursed by the employer may be an expense payment fringe benefit
    • providing food and drink may be a property fringe benefit
    • providing accommodation or transport in connection with entertainment may be a residual fringe benefit
    • entertainment provided by an employer who is exempt from income tax (for example, a registered charity) may be a tax-exempt body entertainment benefit.

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    Last modified: 23 Jan 2015QC 43856