Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 32 - Entertainment expenses  

Subdivision 32-B - Exceptions  

SECTION 32-30   Employer expenses  

Employer expenses
Item	Section 32-5 does not stop you deducting a loss or outgoing for …	But the exception does not apply if …
1.1	providing food or drink to your employees in an *in-house dining facility.	the food or drink is provided at a party, reception or other social function.
1.2	providing food or drink to individuals (other than your employees) in an *in-house dining facility.	(a)	you choose (under section 32-70) not to include in your assessable income $30 for each meal you provide in the *in-house dining facility in the income year to an individual (other than your employee); or
			(b)	the food or drink is provided at a party, reception or other social function.
1.3	providing food or drink in a *dining facility to your employees who perform most of their duties in connection with:	the food or drink is provided at a party, reception or other social function.
	(a)	the dining facility; or
	(b)	a facility (of which the dining facility forms a part) for providing accommodation, *recreation or travel.
1.4	providing food or drink to your employee under an *industrial instrument relating to overtime.
1.5	providing a facility for *recreation on property you occupy, if the facility is mainly operated for your employees to use.	the facility is for:
		(a)	accommodation; or
		(b)	dining or drinking (unless it is a food or drink vending machine).
1.6	providing food or drink which would be a *fringe benefit apart from sections 54, 58, 58N, 58S and 58T of the Fringe Benefits Tax Assessment Act 1986 (disregarding section 58P of that Act).
1.7	providing a meal which would be a *fringe benefit apart from sections 58A, 58F, 58L, 58LA and 58M of the Fringe Benefits Tax Assessment Act 1986 (disregarding section 58P of that Act).
1.8	giving your employee an allowance that is included in his or her assessable income.	(a)	the employee is a *relative of another employee of yours; and
			(b)	you give the allowance to the relative, as your employee, because:
				(i)	he or she provides, or facilitates providing, *entertainment to do with the other employee's employment; and
				(ii)	you expect the relative to do so.

Note 1:

In the case of a company, items 1.1, 1.2, 1.3, 1.5 and 1.8 cover directors of the company as if they were employees: see section 32-80.

Note 2:

In the case of a company, items 1.1, 1.2, 1.3 and 1.5 cover directors, employees and property of another company that is a member of the same wholly-owned group: see section 32-85.

Note 3:

Item 1.8 has a special operation for partnerships: see section 32-90.