• Steps to take if you provide food or drink or recreation to your employees

    Do you provide entertainment by way of food or drink or recreation? These steps will help you decide.

    Step

    Action

    1

    Is the food or drink or recreation entertainment?

    2

    Consider if an exemption applies.

    3

    Is the benefit tax exempt body entertainment?

    If no exemption applies, decide whether or not the entertainment is a tax-exempt body entertainment fringe benefit.

    If the benefit is not tax-exempt body entertainment, it may be a property, expense payment, or residual fringe benefit.

    4

    Decide if you can reduce your FBT payable on the food, drink or recreation.

    5

    Keep the appropriate records.

    6

    Calculate your FBT liability.

    7

    If required, report an amount on the employee's payment summary.

      Last modified: 29 Nov 2016QC 19917