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  • Team building recreational activity (overnight)

    A state government department holds interdepartmental games each year. The games are held at stadiums owned by private corporations. Employees and their families from different State and Territory government departments attend. Physical fitness is a mandatory requirement of employment for the employees.

    The games are held over two week days and food, drink, accommodation and travel to and from the games are provided.

    The first day of the games the employees after arrival engage in:

    • competitive games 9.30am - 12.00pm
    • a three course hot lunch 12.15pm - 1.15pm
    • competitive games 1.15pm - 5.00pm
    • travel by bus to hotel accommodation and hotel check in 5.00pm - 6.00pm
    • dinner including alcohol - 7.00pm.

    The second day of the games the employees engage in:

    • breakfast at hotel 7.30am
    • travel to stadium by bus 8.45am
    • competitive games 9.00am - 12.00pm
    • three course hot lunch 12.00pm - 1pm
    • competitive games 1.00pm - 2.45pm
    • closing of games 2.45pm - 3.00pm
    • travel home - 3.00pm onwards.

    Is entertainment being provided?


    Employees and their families

    Does an exemption apply?
    Food and drink
    No. The minor benefits exemption does not apply because the provision of the entertainment was not incidental to the provision of entertainment to outsiders. The property exemption does not apply because the food and drink provided in this circumstance is entertainment.

    Fee to attend games and travel to games
    No. The fee to attend the games and travel to and from the games is recreational entertainment.

    Who pays the FBT?
    Each government department must pay the FBT on the recreational entertainment. The FBT on the food and drink can be paid by one government department or by each government department.

    Input tax credits
    Each government department can GST claim input tax credits on the value of the entertainment provided.

      Last modified: 20 Dec 2017QC 19918