Meal Entertainment

Meal Entertainment is the provision of:

  • entertainment by way of food or drink
  • accommodation or travel connected with such entertainment

The entertainment expenses may be provided as a reimbursement.

Meal Entertainment is an fringe benefit if you are employed by a public benevolent institution (PBI), health promotion charity (HPC), public hospital, non-profit hospital or a public ambulance service.

As a result of Meal entertainment being FBT, the benefits is required to be reported on PAYG Payments Summaries. There is a limit of $2,649 you can salary package towards meal entertainment and the expenses are eligible to be claimed over and above the relevant capping thresholds.

What constitutes Meal Entertainment?

To substantiate whether the meal has the “Entertainment” characteristic the ATO has defined four factors to consider.

The ATO make it clear that none of the below factors on their own will deem the food and drink entertainment.

(A) and (B) are considered the more important factors.