FBT does not apply to food or drink if it’s provided to and consumed by current employees on your business premises on a workday.

It doesn't matter where the food or drink is prepared, as long as you provide it on your premises. A corporate box is not considered part of your business premises.

This exemption does not extend to associates of employees (such as spouses). However, food or drink provided to associates may be exempt as a minor benefit. If you provide food or drink to both employees and their associates and the food or drink for associates is not exempt, you can apportion the expenditure on a per head basis to work out your FBT.

There is no FBT for providing employee amenities on your business premises, such as coffee making facilities, vending machines and water dispensers.

Example

You provided alcoholic drinks and a buffet meal for 10 current employees and their spouses on your business premises on a workday. The total cost was $1,000.

The cost of the entertainment provided to employees was $50 per person. This is exempt from FBT because the food and drink was provided on a workday on the business premises.

The cost relating to entertaining the employees’ spouses ($50 per person) is under $300 and will be exempt from FBT. This is because the employer, when considering the 5 criteria, determines it’s an exempt minor benefit because it would be unreasonable to treat the minor benefit as a fringe benefit.