April 19, 2021

Entertainment Facility Leasing

Entertainment Facility Leasing is the provision of entertainment attributable in the hiring or leasing of:

  • corporate boxes
  • (the exclusive rights to) boats or planes, or
  • other premises or facilities.

This benefit includes caravans, cabins, motels, hotels, bed & breakfasts, apartments or holiday houses. Additionally, the benefit extends to the hire of a reception centre, private function room or marquee for the provision of entertainment (e.g. for a wedding or birthday party).

Note: Expenses or parts of expenses attributable to providing food or beverages are not entertainment facility leasing expenses.

The entertainment expenses may be provided as a direct payment or as a reimbursement.

Entertainment Facility Leasing is an Exempt fringe benefit if you are employed by a public benevolent institution (PBI), health promotion charity (HPC), public hospital, non-profit hospital or a public ambulance service.

As a result of Entertainment Facility Leasing being FBT Exempt, the benefits are not required to be reported on PAYG Payments Summaries. There is no legislative limit to how much you can salary package towards Entertainment Facility Leasing and the expenses are eligible to be claimed over and above the relevant capping thresholds.