Working lunch provided on the business premises
A group of employees from a conservation association are working on a project to develop a new fundraising campaign. They call a planning meeting to discuss timeframes and finance issues. Due to a tight schedule pizza and soft drinks are ordered and delivered to their offices in the association's headquarters for a working lunch.
Is entertainment being provided?
The provision of a light meal without alcohol ordered in for lunch while working on a project with a specific deadline is not considered as entertainment.
Does an exemption apply?
The property exemption for food and drink provided and consumed on business premises will apply to the employees as the food and drink provided is consumed by the employee on a working day at the work premises.
The employer can claim GST credits for food and drink provided.