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Board Fringe Benefits

FBT Taxable Values

The taxable value of a board fringe benefit is

  • $2 per meal per adult; or
  • $1 per person if under the age of 12

The taxable value is reduced by any amount the employee pays for the meal (employee contribution).

Goods and services tax (GST) does not affect the taxable value of board fringe benefits so these benefits are always ‘grossed up’ at the type 2 rate.

What is a Board Fringe Benefit?

A meal provided to an employee is a board fringe benefit if the employee is entitled to have accommodation provided and all of the following:

  • there is an entitlement under an industrial award to be provided with at least two meals a day, or under an employment arrangement at least two meals a day are ordinarily provided
  • the meal is supplied by the employer or (if employer is a company) by a related company in a wholly owned group
  • the meal is cooked or prepared on employer’s (or related company’s) premises or on a worksite or place adjacent to a worksite
  • the meal is supplied on employer’s premises (or the worksite) or on the premises of a related company.

Examples provided by the Tax Office are:

  • meals provided in a dining facility located on a remote construction site, oil rig or ship
  • meals provided to a live-in housekeeper or to a resident teacher in a boarding school.
  • meals supplied to family members living with an employee who is entitled to meals under the employment agreement or award

Employee contracted to another person

Where an employee’s services are contracted to another person who provides the employee with board meals on their premises, the meals are board fringe benefits and the original employer has the FBT liability.


The following are not board fringe benefits:

  • meals provided at a party, reception or other social function
  • meals provided in a dining facility open to the public, except for board meals provided to employees of a restaurant, motel, hotel and so on
  • meals provided in a facility principally used by a particular employee

– Such meals can be property fringe benefits or tax-exempt body entertainment fringe benefits.

  • Board meals provided to an employee who is employed in a primary production business located in a remote area are exempt benefits under section 58ZD of the FBTAA
  • Otherwise deductible – where expenditure would have been tax deductible to the employee, the FBT value of the board fringe benefit is reduced to nil if:
    • the employer provides a board fringe benefit; and
    • the employee would have been entitled to an income tax deduction if they had paid for the meal
  • Incidental refreshments such as morning and afternoon teas supplied as part of board are exempt from FBT

Further information

Board fringe benefits

This page was last modified on 24 August 2017