Think you can claim your lunch time ‘client meetings’? Think again….

It is a widely held belief that you can claim your client or team ‘meetings’.  That is, lunch with your client or team member while discussing business. Although these meetings may be a necessary cost of doing business, in the eyes of the ATO there are certain circumstances in which only a portion of this meeting will be deductible, if at all.

The ATO classes most events with food and drink as entertainment.  Meal entertainment, if no exemption apply, will attract Fringe Benefit Tax (FBT) which is 47% of the taxable