property fringe benefit

cathy~~~~~

From the ATO website regarding of Meal entertainment FBT:
Assume the same facts as above apply, however alcohol is provided. As alcohol has been provided, the afternoon tea provided to employees in this situation is considered to have a social context. The afternoon tea is entertainment. This will be a property fringe benefit and the property exemption will apply, unless the employer elects to value the entertainment as meal entertainment.

WHY WOULD A PROPERTY FRINGE BENEFIT HAS ANYTHING TO DO WITH MEAL/ENTERTAINMENT?
i THOUGHT THAT  PROPERTY FRINGE BENEFIT IS RELATED TO LAND, BULDING, ELECTRICITY OR GAS BILLS.

威化饼

什么意思啊？到底？

simonwang

When employer is providing a property fringe benefit, that means the employer has bought the food and/or the drink, then provided to the employee directly. The invoice would be under employer's name.

If the employer treats the food and/or drink as property fringe benefit, it may apply property exemption so no FBT will be applicable. Or if the property (food/drink) is provided outside the business premises, minor benefit exemption may apply.

If the employer treats the food and/or drinks as meal entertainment fringe benefit, the actual method cannot apply. Other 50/50 or 12 weeks register methods can be used. There will be no property exemption and no minor benefit exemption.

Hope it helps.

aladdin_lamp

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