• Using the 50-50 split method

    The total taxable value of meal entertainment fringe benefits is 50% of the expenses you incur in providing meal entertainment to all people (whether employees, clients or otherwise) during the FBT year. Your total meal entertainment expenditure includes expenditure that might otherwise be exempt from FBT or not normally subject to FBT.

    The reference to expenses you incur in providing meal entertainment excludes any contribution by an employee or associate.

    Where you are reimbursed by a third party for the cost of meal entertainment you provide to an employee, the value of the benefit received by the employee is not reduced. The arrangement between the employer and the third party is unrelated to the benefit provided to the employee.

    The property benefits exemption described in section 14.5 and section 20.6 of Fringe benefits tax exempt benefits, and the minor benefits exemption described in section 20.8 of Fringe benefits tax exempt benefits don't apply to meal entertainment fringe benefits if you use the 50-50 split method.

      Last modified: 09 Aug 2016QC 17828