Morning tea provided on the business premises
A family support agency hosts an annual morning tea to thank their employees for their good work during the year. Finger food, and tea and coffee are provided. The cost per head is $20.
Is entertainment being provided?
The provision of food and drink in this circumstance is not entertainment. The provision of this morning tea is however a property fringe benefit.
Does an exemption apply?
The food and drink provided to employees is exempt from FBT because it is provided and consumed on a working day on the business premises.
The employer can claim GST credits for food or drink.