Can your lunch at work be tax deductible?

When it comes to fringe benefits tax, one of the exemptions is meals. Food and/or drink provided by an employer (must be a company or trust) to employees is often FBT exempt. This means that the company can claim a deduction for it in certain circumstances. These circumstances are: that the food is consumed on the employer’s premises; that the food is not related to a “social function;” and that no alcohol is served with the meal (booze makes things social, not functional).

So, if a company provides things like sandwiches, wraps, cups of soup and other “light lunch” type food to be consumed on site, GST is claimable, a tax deduction is allowed and there is no FBT liability.

And if you are a business owner and an employee then your lunch can be effectively subsidised by the ATO. Who says the tax man is the bad man?