20.6 Property exemptions


Legislative reference: section 41External Link of the FBTAA.

Property you provide to an employee may be an exempt benefit. The exemption applies if the property provided to the employee is both provided and consumed on a working day on your premises (if you are a company, the premises may be those of a related company). For example, there is no FBT on bread rolls given to bakery employees for consumption at work.

This exemption doesn't apply to:

  • employers who are exempt from income tax when entertainment arises from the provision of food and/or drink
  • income tax-paying bodies who elect to value the entertainment as meal entertainment
  • meals provided under a salary sacrifice arrangement after 7.30pm AEST on 13 May 2008.
    Last modified: 08 Jan 2014QC 17820