Meals provided to employees working in hospitality

Meals provided to employees working at an RSL Club

A large RSL club employs 27 staff to work in the various parts of the club. Many of the staff work part time and have shifts at different times of the day and night. Dining facilities include a large buffet restaurant and another dining area that serves light meals and beverages from10.00am until midnight. During their rostered work hours employees are provided with meals for lunch and/or dinner from the buffet.

Is entertainment being provided?

Yes, providing a meal from the buffet to employees is entertainment.


Does an exemption apply?
Yes, an exemption does apply. Although providing the meals to employees is entertainment, if the charity was an income tax paying body, it would be entitled to an income tax deduction for the meals provided to employees in the RSL club dining facility.

Because meals provided in a dining facility to employees are usually income tax deductible, the entertainment provided in this circumstance is not a tax-exempt body entertainment fringe benefit.

The food or drink provided in this circumstance is a property benefit. The property benefits exemption applies because the meals are being provided to current employees on a working day on business premises.

GST credits
The RSL club can claim GST credits for the food and drink.

    Last modified: 31 Mar 2009QC 19917