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Hospitality

Fringe Benefits Tax (FBT) and
Goods & Services Tax (GST)

For the purposes of FBT and GST, hospitality will fall into one of the following categories;-

CATEGORY 1 - Morning and afternoon teas

Morning and afternoon teas (light refreshments such as tea, coffee, fruit drinks, cakes etc.) provided to employees and associates of employees (non-staff) are not considered entertainment and therefore are exempt from FBT and GST Input Tax Credits can be claimed. Detail codes and GST codes should be used as follows;-

CATEGORY 1	ACCOUNT CODE	GST CODE
Staff	5271	C
Non-Staff	5271	C

CATEGORY 2 - Light Meals

Light meals (eg finger food such as sandwiches, fish pieces, meatballs etc, or non-elaborate meals) which do not include alcohol or only include a moderate quantity of alcohol are not considered entertainment and therefore are exempt from FBT and GST Input Tax Credits can be claimed. Detail codes and GST codes should be used as follows;-

CATEGORY 2	ACCOUNT CODE	GST CODE
Staff	5271	C
Non-Staff	5271	C

CATEGORY 3 - In-House Meals

The University Club is considered to be an "In-House Dining facility" and consequently hospitality provided by the University Club is exempt from FBT. GST Input Tax Credits can be claimed for staff, however they cannot be claimed for non-staff. Detail codes and GST codes should be used as follows;-

CATEGORY 3	ACCOUNT CODE	GST CODE
Staff	5271	C
Non-Staff	5271	P

NOTE - Morning and Afternoon teas and Light Meals provided for meetings/functions by the University Club will fall into CATEGORY 1 or 2, not into CATEGORY 3.

CATEGORY 4 - Sit down meals or purchases of alcohol

Full "sit-down" meals consumed in restaurants or in other establishments are considered entertainment, as are light meals accompanied by a significant amount of alcohol (more than one drink per person), and the purchase of alcohol alone. FBT will apply to the portion of the cost applicable to staff and GST Input Tax Credits are claimable. FBT does not apply to the portion of the cost applicable to non-staff, however GST Input Tax Credits cannot be claimed. Detail codes and GST codes should be used as follows;-

CATEGORY 4	ACCOUNT CODE	GST CODE
Staff	5272	C
Non-Staff	5271	P