FAQs on FBT
- What is FBT?
- What item codes do we use:
- When doesn't FBT apply?
- What expenses are FBT if I am taking a client out for dinner whilst travelling on University business?
- How do I claim the FBT?
- What do I do if I'm home and having lunch with a client?
- What other items are FBT?
FBT is a tax which is charged on entertainment expenses associated with University business eg dinners with clients etc. FBT is also charged on other expenses where a University employee receives a benefit (see Sharon Olson, the salary sacrifice expert on motor vehicles which incur FBT).
| 2972 | Uni Premises Socl Functn | Non Uni Staff To be used for the non- Uni staff component of expenditure relating to social functions such as lunches or dinners held on Uni premises |
| 2973 | Off Uni Premises | Uni Staff & Assoc To be used for staff and associates component of expenditure for functions such as lunch or dinner held off Uni premises. An associate of a staff member includes spouse, partner or family member. Other examples include Kartmania, skirmish and AFL football matches |
| 2974 | Off Uni Premises | Non Uni Staff To be used for non-staff component of expenditure for functions such as lunch or dinner held off Uni premises |
| 2975 | Off Uni Premises Seminar Lght Refreshmts | To be used for hospitality expenditure related to seminars off Uni premises which are over four hours in length. Examples include planning days and retreats |
| 2464 | Gifts | Non Staff Expenditure incurred in relation to non staff gifts, including gifts for guest speakers and overseas partners |
| 2976 | Staff Private Costs & Gifts < $100 | Expenditure incurred in relation to staff gifts and staff personal/private costs costing less than $100. For example a bird bath at home, flowers, luggage replacement |
| 2977 | Staff Private Costs & Gifts > $100 | Expenditure incurred in relation to staff gifts and staff personal/private costs costing more than $100. For example a bird bath at home, flowers, luggage replacement, passports |
When food and drink is consumed by an employee whilst travelling away from home on University business where it does not include any form of entertainment.
The bill will need to be split in two portions - the non-FBT expenses for the employee - using item codes (1701 travel etc) and the FBT expenses for the client (using item codes 1005).
When applying for either a reimbursement or reconciling the payment (either on your Visa Card or cash advance via accounts payable), completing a FS71 Entertainment Expenditure form will assist you in distinguishing the different costs.
What do I do if I'm home and having lunch with a client?
The bill will need to be split in two portions - the non-FBT expenses for the client - using item codes 1005 etc and the FBT expenses for the employee - using item codes 1005.
Purchases for private and business use such as computers and items for travelling is FBT. The cost will need to be split between 1007 which is the FBT portion and an item code for the other portion of the cost, eg suitcase of $100 is purchased by your business visa card, 20% is used for business travel item code 1701 and 80% of the cost is used for private use (item code 1007).