ENTERTAINMENT

Category 1: Entertainment Not Subject to FBT

A)    Light meals on premises: Light meal consumed by an employee in the workplace is not subject to FBT.

 

B)    Business meeting on premises: Meal provided in the workplace during business meeting is not subject to FBT.

 

C)    Graduation: The University of Newcastle being an educational service provider arranges graduation ceremony as part of its regular business activity is not subject to FBT.

 

D)    Sit down meal while attending training / seminar: Meal provided to an employee while attending a training or seminar longer than 4 hours is not subject to FBT.

 

Category 2: Entertainment Subject to FBT

A)    Social function regardless on or off premises: Social functions on or off premises is subject to FBT, and written approval required by delegated officer is required for entertainment like Christmas party, staff retreats and employee farewell for events >$500.

 

B)    Business lunch off premises: Business lunch off premises is subject to FBT. 

 

C)    Recreational activity on or off premises: Any recreational activity (non-business) expense is subject to FBT eg, golf day or corporate event tickets.

 

D)    Sit down meal while attending training / seminar: If any meal is provided to the employee while attending a training or seminar less than 4 hours is subject to FBT

 

Important note:

1)     Entertainment should only be incurred where it is considered essential to facilitate the conduct of University business.

 

2)     All associated costs of an activity like venue hire should be treated similar to the meal expense for FBT purposes.

 

3)     Alcohol – is only permitted with a meal whilst on University business, for example during a business lunch with an external party. It should not be excessive in terms of quantity or cost (generally two glasses of reasonably priced beer or wine with dinner whilst on University business would be considered appropriate for University staff).

 

4)     Social functions exceeding $500 require written approval from delegated officer.

 

5)     Meal entertainment that is subject to FBT represents a cost in addition to the cost of the entertainment provided. The way FBT is calculated means that the cost is about the same as the amount of the entertainment.

 

6)     Staff should familiarise themselves with the Purchasing Card – Policy and Procedures (Document Number 000495).

 

7)     The following tables summarise which account code based to be used in spendvision, as well as FBT and GST status. You can contact your Business Support Accountant in your Faculty for further clarification or contact Finserv-Financialacc@newcastle.edu.au.

Entertainment
Category	Type of Event	Employee		Non-Employee (Student, Visitor and Other)
	Description	Account Code FBT Status	GST Code	Account Code FBT Status	GST Code
1	Light meals on premises - Morning tea - Afternoon tea - Finger food during training	5271  No FBT	C	5271 No FBT	C
	Graduation - light meal - morning tea - Lunch - Afternoon tea	5271 No FBT	C	5271 No FBT	C
	Business meeting on premises - Light Meal - Lunch	5271  No FBT	C	5271 No FBT	C
	Sit down meal while attending training/seminar (Event ≥4 hours) - Lunch - Dinner	5271  No FBT	C	5271 No FBT	C
2	Social function regardless of on or off premises - Christmas Party - Farewell/Retirement party	5272  FBT	C	5271 No FBT	P
	Recreational activity on or off premises - Sporting event - Tour/cruises - Team Building/development days	5272  FBT	C	5271 No FBT	P
	Business meeting off premises - Light Meal - Lunch or Dinner	5272  FBT	C	5271 No FBT	P
	Sit down meal while attending training/seminar (Event < 4 hours) - Lunch - Dinner	5272  FBT	C	5271 No FBT	P