You can choose to value meal entertainment as a meal entertainment fringe benefit.
Under the meal entertainment rules, the taxable value of meal entertainment fringe benefits you show at item P will be either of the following:
- half the meal entertainment expenditure you incurred for the FBT year
- an amount worked out according to a 12-week register you kept.
If you do not value meal entertainment as a meal entertainment fringe benefit, depending on how the benefit was provided and by whom, value the fringe benefit as either an expense payment, a property, residual or a tax-exempt body entertainment fringe benefit.
If you value entertainment facility leasing expenses under the 50–50 method, you must show the expenses at item M 'Other benefits (residual) as a residual fringe benefit'.
Example: Calculate meal entertainment fringe benefits
An employer spends $4,000 on meal entertainment for the FBT year. The employer chooses to value the meal entertainment fringe benefits using the 50–50 split method.
The calculation for the meal entertainment fringe benefits would be:
$4,000 x 50% = $2,000
The employer would show this at item 23 as: