College of Arts and Social Sciences
FBT Entertainment Frequently Asked Questions
Question
What is the definition of
infrequent?
What does the term incidental to
entertaining clients mean?
What is the dollar cut off to be
considered a light lunch? For
example would $30 per person
constitute a light lunch?
Is a set course lunch at Vivaldis
or Boffins including a glass of
wine (but where no alcohol is
shown on the invoice),
acceptable as a light lunch?
Answer
There is no definition of infrequent in the Fringe Benefits Tax
Assessment Act 1986 (FBTAA). TR 2007/12 uses the Macquarie
dictionary definition which is:
1. happening or occurring at long intervals or not often
2. not constant, habitual or regular
The practical application of infrequent is not easy. As a result we
need to use commonsense in applying the meaning.
The main purposes of the event needs to be the entertainment of
clients. Such an event at the ANU would be a graduation cocktail
party for students that have just graduated. The main purpose of the
event is the entertainment of students. Where staff attend the event,
they are considered incidental and not subject to FBT.
Another example would be an alumni dinner where staff attend.
There is no definition of what constitutes a light meal. Practically
though, around $20 to $30 per person would be reasonable.
Does a conference dinner have
to be documented as part of the
conference program to count as
an eligible training seminar?
The definition of light meal is limited to sandwiches, other hand
foods, salads, etc. A sit down meal starts to move into the
entertainment sphere, especially when more than 1 course is
included.
The provision of alcohol constitutes entertainment and is subject to
FBT as the consumption of alcohol has social connotations. Not
showing the alcohol on the invoice is dishonest.
No. However it is worth noting that entertainment provided at an
eligible seminar is limited to light meals and some alcohol. A formal
dinner will give rise to entertainment and will be subject to FBT for
employees that attend.
Should an FBT form be used for
conference morning/afternoon
teas and lunches, or can a light
meal stamp be used?
A light meal stamp can be used. This is the case whenever a light
meal is provided.
However a note must be included as to how it was determined that it
was appropriate to use the Light Meal Stamp.
A Light Meal Stamp cannot be used for a conference dinner.
When a light meal stamp is used
what other documentation is
required to demonstrate it is a
light meal?
When employees are travelling
on ANU business and take
colleagues (usually from other
institutions) out to dinner, can
that still be regarded as a meal
while travelling?
A conference program/brochure would be appropriate, together with
a note about how it was determined that a light meal stamp was
appropriate.
The characteristics of the attendees are not required.
The meal will be exempt from FBT for the employee travelling.
Where the colleagues are paid for by the ANU they will be treated as
clients and not subject to FBT and no GST can be claimed. Where
the colleagues are from ANU but are not travelling (such as staff at
NARU) then the non-travelling employee will be subject to FBT.
What is a moderate amount of
alcohol?
A moderate amount of alcohol is a glass or two of wine with the
evening meal.