• Using the 12-week register method

    The total taxable value of meal entertainment fringe benefits is the total expenses you incur in providing meal entertainment to all people (whether employees, clients or otherwise) during the FBT year, multiplied by the 'register percentage'. 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.

    Register percentage

    You use the following formula to calculate the register percentage:

    A
    B

    X

    100

    Where:

    A

    =

    The total value of meal entertainment fringe benefits you provide to employees and their associates during the 12-week register period.

    B

    =

    The total value of meal entertainment you provide to all people (whether employees, clients or otherwise) during the 12-week register period.

    Valid register

    You must keep the register for a continuous period of 12 weeks. The provision of meal entertainment during this period must be representative of the meal entertainment you provide during the first FBT year for which the register is valid.

    Generally, a register is valid for the year in which you keep it and the four following years. However, if the period during which you keep the register begins in one FBT year and ends in the following FBT year, the register is not valid for the first year.

    If the total expenses you incur in providing meal entertainment increase by more than 20% in a year, the register is not valid for any of the years following the year in which the increase occurred.

    A register that is otherwise valid for an FBT year ceases to be valid if there is a later valid register for that FBT year.

    A register containing an entry that is false or misleading in a material particular is not a valid register.

    The person making the entries in the register must do so as soon as practicable after the details are known.

    Details to be included in register

    You record the following details in the register:

    • the date you provided meal entertainment
    • for each recipient of meal entertainment, whether they are one of your employees or an associate of an employee
    • the cost of the meal entertainment
    • the kind of meal entertainment provided
    • where the meal entertainment was provided
    • if the meal entertainment was provided on your premises, whether it was provided in an in-house dining facility.

    The property benefits exemption described in section 14.5 and section 20.6 of Fringe benefits tax exempt benefits, does not apply to meal entertainment fringe benefits when you use the 12-week register method. However, the minor benefits exemption described in section 20.8 of Fringe benefits tax exempt benefits can apply.

      Last modified: 09 Aug 2016QC 17828