Entertainment expense payments
Legislative reference: section 63AExternal Link of the FBTAA.
A reduction in the taxable value of an expense payment fringe benefit is available where the expense payment fringe benefit arises from expenditure an employee incurs in entertaining people other than the employee or associates - for example, expenditure incurred by the employee on entertaining your clients.
You may reduce the taxable value of the expense payment fringe benefit by the percentage of the expenditure incurred in entertaining the other people.
The taxable value may not be reduced under this concession if the otherwise deductible rule applies.