The Australian Taxation Office has very specific Taxation and Record-Keeping requirements when a Business makes purchases of food and beverages, entertainment and gifts to their Employees.

For more information on the treatment of these transactions please refer to the Meals, Gifts and Entertainment Factsheet we have publicly available in our Knowledge Base.

Recording Meals, Gifts & Entertainment Transactions under $300 per head

1. In Hubdoc/Xero record the transaction as either a Purchase (Tax Invoice) or Spend Money (Receipt) and post it to one of the following expense accounts:
   • Exp Account: Employees - Light Refreshments > Meals consumed in the office
   • Exp Account: Employees - Entertainment > Meals consumed in a public restaurant or flights etc
   • Exp Account: Employees - Gifts > Non-Entertainment Related gifts (hampers, bottles of wines etc)

Recording Meals, Gifts & Entertainment Transactions over $300 per head

1. In Hubdoc/Xero record the transaction as either a Purchase (Tax Invoice) or Spend Money (Receipt) and post it to one of the following expense accounts/items:
   • Exp Account: Employees - Light Refreshments > Meals consumed in the office
   • Item: ZZZ-FBTENT > Meals consumed in a public restaurant or flights etc
   • Item: ZZZ-FBTGFT > Non-Entertainment Related gifts (hampers, bottles of wines etc)

At the end of the Financial Year, we will provide a report to the Accountant detailing all the above transactions, so they can make the correct Tax determination and adjustment.