As an employer, you’re providing a fringe benefit if all the following apply:

• you provide food, drink or recreation to your employees or their associates (such as their families)
• the food, drink or recreation is considered entertainment, and
• the entertainment is not an exempt benefit.

Entertainment includes:

• reimbursing employee expenses associated with entertainment, and
• accommodation and travel associated with entertainment.

Some examples of providing entertainment are:

• business lunches and drinks
• parties and social functions for employees
• product release functions
• reward and recognition functions
• sporting or theatrical events
• gym or sporting club memberships
• sightseeing tours and holidays.