Catering, Events & Entertainment
The University's preferred method of payment for catering, events & entertainment is the corporate credit card.
Staff with a corporate credit card are expected to use their card to pay for all catering and entertainment services. In the event the expenditure exceeds the credit limit or you don't hold a corporate credit card, a Requisition must be raised in eProcurement prior to the event / entertainment taking place (the Entertainment Expenditure form Excel / Interactive PDF must be attached).
The Non-Allowable Expenses Procedures provides practical examples of expenses that are considered non-allowable (or personal in nature), exceptions to these categories which are allowable, and reasonable expenditure thresholds for gifts and entertainment.
|Events & Entertainment
Fringe Benefits Tax (FBT)
- What is FBT?
A fringe benefit is a benefit provided to an employee (or their associate). Benefits can also be provided by a third party under an arrangement with the employer. An employee can be a current, future or former employee.
Entertainment related FBT may arise from providing employees and associates with the following;
- entertainment by way of food, drink or recreation
- providing accommodation and/or travel including taxi’s in connection with such entertainment, or
- paying or reimbursing expenses incurred in obtaining something covered by the above points.
If providing these events for employees and associates you will need to determine whether the event / entertainment will require you to pay FBT.
For a breakdown of possible FBT on meal & entertainment expenses, view the Meal and Entertainment Tax Guide matrix. This also provides the correct general ledger account codes.
- When is FBT not payable?
FBT is not payable for -
- Clients or students consuming food and drink
- Employees consuming food and drinks whilst travelling or attending local seminars, workshops, conferences or similar events.
- Providing employees and associates with food and drink in the way of refreshments during a working day or for work related purposes e.g. finger food in lunch time meetings.
In order to determine if FBT is payable on any type of catering, event or entertainment expenditure, and to calculate the taxable value of the benefit if applicable, a list of attendees noting their relationship to the University (e.g. staff or non-staff) must be provided.
- If paying on the corporate credit card, acquit the transaction using the entertainment spend wizard and attach a list of the attendees (number of non-staff vs staff).
- When raising a Requisition in eProcurement, complete and attach the Entertainment Expenditure Form (Excel / Interactive PDF)
- If the breakdown of employees vs non employees is not known when raising the Requisition, the total must be charged to 2786 and amended after the event/ entertainment.
- If payment is through Accounts Payable, an Entertainment form must be completed and submitted with the invoice.
Using the National Wine Centre
It is recommended that staff functions or social events are held at the National Wine Centre (NWC) on North Terrace.
Staff functions and events conducted by the University at the NWC will not attract FBT for the staff attending, similarly catering services provided by the NWC on University grounds are also FBT exempt.
This FBT-free status is only applicable for functions or events invoiced by the NWC (does not apply to other suppliers even if the event is held at the NWC) and paid using a corporate credit card or tax invoice - refer to the fact sheet which explains the financial benefits and potential savings.