How to treat entertainment for FBT purposes is a complicated and vexed area. Whether FBT applies and how much depends on the character of the payment, who’s involved (and who’s connected), where and when, and the type of entity responsible.
The Tax Office recently conducted a webinar (link below) which covered the following main points:
- what is the provision of entertainment?
- correctly classifying entertainment fringe benefits
- circumstances which are NOT entertainment
- what steps are required if you provide food, drink or entertainment
- why, what, when and where of food or drink
- possible exemptions
- when FBT is payable on entertainment
- meal entertainment: a special category, and how to value for FBT purposes
- Example – a Christmas Party
- Recent changes to meal and other entertainment benefits
- tips and traps
- where to find more information
The webinar video runs for approximately 45 minutes.
If you prefer to read the transcript, it can be downloaded here.
The ATO have also provided a slide show which can be downloaded here.
To view the webinar video and see further information links, click below.
Keeping things simple, and staying out of the net
Being aware of exemptions and limits can help you avoid being dragged into the FBT tax net. The following further links may be help to explain ways to keep things simple, by not attracting FBT liability:
- How to Avoid FBT on Benefits to Staff at Christmas – australianbiz.com.au
- Entertainment Fringe Benefits – atotaxrates.info
- FBT – Did your employees receive any benefits in lieu of salary and wages? – www.nexiaem.com.au