Catering and entertainment for clients and employees is a great way to network and build business. This can happen in a variety of situations with many different employees and their colleagues. Under Australian Tax Office (ATO) rules, there may be deduction on the staff amenities, if providing refreshments which is less elaborate to enable the employee to complete the working day in comfort on business premises.
However, if providing entertainment in the form of food, drink, or recreation; or providing accommodation or travel associated with such entertainment; or paying or reimbursing expenses incurred in connection with obtaining above items, then, it becomes the provision of entertainment and fringe benefits tax is required.
Staff Amenities and Entertainment full article link
Claire Chang