Tax-exempt body entertainment fringe benefit

A tax-exempt body entertainment fringe benefit is non-deductible entertainment provided to employees (and their associates) by a tax-exempt body.

To qualify as a tax-exempt body an organisations income is either:

  • wholly exempt from income tax – for example, a club that earns income from members only
  • partially exempt from income tax – for example, a club that earns income from both members and non-members.

A tax-exempt body entertainment fringe benefit may arise from entertainment expenses incurred by an employer who:

  • is wholly or partially exempt from income tax, or
  • does not derive assessable income from the activities to which the entertainment relates.

Note: Charities you must be endorsed in order to be income tax-exempt.

Fringe benefits available to employees:

If you are employed by a public benevolent institution (PBI), health promotion charity (HPC), public hospital, non-profit hospital or a public ambulance service the following FBT Exempt benefits are claimable:

Note: as the above benefits are FBT Exempt, the benefits are eligible to be claimed over and above the relevant capping thresholds and are not required to be reported on PAYG Payments Summaries.