Board fringe benefit overview
A board fringe benefit arises in respect of a meal provided in an employment context by an employer, or a related company if the employer is a company. The meal must be provided to an employee or an associate of the employee where the employee or associate is entitled to:
- Residential accommodation (provided in an employment context, with or without charge).
- At least 2 meals a day, pursuant to an industrial award or an agreement between the employer and the employee.
To be subject to FBT as a board benefit, all of the following conditions must also be satisfied:
- The meal is cooked or prepared on the employer's premises (or a related company's premises), or on premises at or near a site where the employee is working. A dining facility open to the public does not satisfy this condition. An exception occurs when an employee works in a dining room that is open to the public (such as restaurants, hotels etc.), and the meal is prepared and provided in that dining facility.
- The facility where the meal is prepared is not wholly or principally used for preparing meals for a particular employee or associates.
- The meal is not provided at a party, reception, or social function.
When an employer contracts out the services of employees to a third party, the board meal provisions apply, as if the meals were supplied by the employer on the employer's premises.
Latest Information
See the ATO website for additional details and the most up to date information: