You may be able to treat entertainment benefits as an exempt minor benefit with no requirement to pay fringe benefits tax (FBT) if specific criteria are met.

As an employer, you may occasionally provide your employees with food and drink, gifts and leisure activities. This may happen in a variety of circumstances and for a number of different employees and their associates, such as family members.

If you occasionally provide these events for your employees, you need to know whether they are classified as entertainment and whether you have to pay FBT on the benefits provided.

Food and drink have additional factors to determine whether they are classified as entertainment. The additional factors focus on why, what, when and where the food and drink were provided.