Document ID: chunk:federal_register_of_legislation:C2025C00029:section:129:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 129 (pt 3/10)
Character Range: 731047–733856

loss or outgoing that you incur for the purpose of producing assessable income.
Note 2: If you have used your property in providing entertainment, you may not be able to deduct an amount for the property: see section 32‑15.
Note 3: Section 32‑75 deals with arrangements to avoid the operation of this section.

32‑10  Meaning of entertainment
 (1) Entertainment means:
 (a) entertainment by way of food, drink or *recreation; or
 (b) accommodation or travel to do with providing entertainment by way of food, drink or *recreation.
 (2) You are taken to provide entertainment even if business discussions or transactions occur.
Note: These are some examples of what is entertainment:
                  *   business lunches
                  *   social functions.
 These are some examples of what is not entertainment:
                  *   meals on business travel overnight
                  *   theatre attendance by a critic
                  *   a restaurant meal of a food writer.

32‑15  No deduction for property used for providing entertainment
  To the extent that you use property in providing *entertainment, your use of the property is taken 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