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Meal & Entertainment Benefit
Dine out, enjoy events and socialise - and pay for it from your pre-tax salary. An extra cap, on top of your Everyday Living benefit.
Additional annual cap
$2,650
On top of your $15,900 living cap
A separate cap for your social life
The entertainment benefit is an additional salary packaging cap of $2,650 per year - separate from your $15,900 everyday living cap. That means eligible employees can potentially package up to $18,550 combined in pre-tax benefits annually.
According to the ATO, entertainment covers food, drink and recreation enjoyed in a social context - things like restaurant meals, venue hire, sporting events and leisure activities. The key distinction is that it's about enjoyment and social experience, not just sustenance.
$2,650
Entertainment cap
Per FBT year
$18,550
Combined with living
Total potential cap
$860+
Typical saving
At $80k salary
NFP only
Employer types
PBI & rebatable
What counts as entertainment?
The ATO defines entertainment as food, drink or recreation enjoyed in a social context - here's what that looks like in practice.
Restaurant & Café Dining
Take clients, family or friends out for a meal at a restaurant, café or licensed dining venue and pay for it with your pre-tax salary. The meal must be consumed at the venue - it's about the social dining experience, not just the food.
Venue Hire & Functions
Hiring a venue for a private function, celebration or event? If it involves food, drink and a social context - a birthday, anniversary, team celebration - venue costs can typically be packaged as an entertainment benefit.
Recreation & Leisure Activities
Recreation that qualifies as entertainment includes activities like golf games, theatre and movie tickets, harbour cruises, joy flights, gym memberships and sporting club memberships - all enjoyed in a social or leisure context.
Social Drinks & Bar Tabs
Social drinks at a bar or restaurant - particularly where there's a social purpose and you're off business premises - generally qualify as entertainment. A bar tab with colleagues after work at a licensed venue is a typical example.
Generally qualifies
Meals at a restaurant, café or licensed venue
Bar tabs and social drinks at a licensed premises
Theatre, cinema or concert tickets
Sporting event tickets (AFL, cricket, concerts etc.)
Golf, harbour cruises, sporting club memberships
Venue hire for a private social function
Accommodation associated with an entertainment event
Generally does NOT qualify
Takeaway food or delivery (no sit-down dining context)
Groceries or supermarket purchases
Coffee from a café during the work day (considered sustenance, not entertainment)
Alcohol purchased for home consumption
Expenses already covered by your Everyday Living benefit cap
The ATO's key test: is the purpose to help the employee complete their working day, or to enjoy themselves socially? If it's social - it's likely entertainment.
Use your benefit and enjoy life more
Real experiences, paid for with pre-tax dollars.
Fine dining
Live events
Golf
Social experiences
Who is eligible?
NFP / PBI (FBT exempt)
Rebatable NFP employers
Corporate / private employers
Government / public sector
Record keeping: You'll need to retain receipts showing the date, venue name, number of people and total amount spent. Many NSP clients use a dedicated meal entertainment card to make record keeping automatic and hassle-free.
How much could you save?
Savings Estimator
Indicative figures only - not a guarantee or financial advice
Up to ~$2,650 / yr
$398
Estimated annual saving
$15
Per fortnight saving
30%
Your marginal tax rate
Based on general meal entertainment cap. Subject to employer eligibility and ATO rules. Figures are indicative only and do not constitute financial or taxation advice. Actual savings depend on your personal circumstances, employer setup and current ATO rules. Where the standard 2% Medicare levy is included, it applies whether or not you hold private hospital cover; the Medicare Levy Surcharge is not included.
Ready to add the entertainment benefit to your package?
Our team will confirm your eligibility and stack this on top of your existing everyday living benefit - maximising every dollar available to you.
Disclaimer: The information on this page is general in nature only and is based on ATO guidance current at the time of publication. It does not constitute financial, taxation or legal advice. Eligibility for the entertainment benefit depends on your employer's FBT classification, your individual circumstances and current ATO rules, which are subject to change. What qualifies as entertainment is determined by the ATO and specific circumstances - always confirm with a qualified adviser. Source: ATO - Entertainment-related fringe benefits.
