Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_4:p10
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 10/21)
Character Range: 179785–183027

not to be for the *purpose of producing assessable income if section 32-5 would stop you deducting a loss or outgoing if you incurred it in the income year in providing the entertainment.

Note: Under some provisions of this Act, in order to deduct an amount for your property, you must have used the property for the purpose of producing assessable income.

Subdivision 32-B—Exceptions

Table of sections

32-20 The main exception—fringe benefits
32-25 The tables set out the other exceptions
32-30 Employer expenses
32-35 Seminar expenses
32-40 Entertainment industry expenses
32-45 Promotion and advertising expenses
32-50 Other expenses

32-20  The main exception—fringe benefits

  Section 32-5 does not stop you deducting a loss or outgoing to the extent that you incur it in respect of providing *entertainment by way of *providing a *fringe benefit.

  But this exception does not apply to the extent that the taxable value of the *fringe benefit is reduced under section 63A of the Fringe Benefits Tax Assessment Act 1986.

Note 1: You may be able to deduct losses or outgoings that are fringe benefits under section 51AEA, 51AEB or 51AEC of the Income Tax Assessment Act 1936. If you do, then you cannot deduct them under section 8-1 (about general deductions) and so this section is not relevant.

Note 2: There are other exceptions for a loss or outgoing you incur in providing a benefit that would be a fringe benefit if it were not an exempt benefit: see items 1.6 and 1.7 of the table in section 32-30.

32-25  The tables set out the other exceptions

  Section 32-5 does not stop you deducting a loss or outgoing to the extent that you incur it in respect of providing *entertainment as described in column 2 of an item of a table in this Subdivision.

  However, if column 3 of that item applies, the exception in column 2 of that item does not.

32-30  Employer expenses

Employer expenses
Item               Section 32-5 does not stop you deducting a loss or outgoing for ...                                                                                                                           But the exception does not apply if ...
1.1                providing food or drink to your employees in an *in-house dining facility.                                                                                                                    the food or drink is provided at a party, reception or other social function.
1.2                providing food or drink to individuals (other than your employees) in an *in-house dining facility.                                                                                           (a) you choose (under section 32-70) not to include in your assessable income $30 for each meal you provide in the *in-house dining facility in the income year to an individual (other than your employee); or
                                                                                                                                                                                                                 (b) the food or drink is provided at a party, reception or other social function.
1.3                providing food or drink in a *dining facility to your employees who