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JacquiSan(Newbie)Newbie
25 Mar 2024

Our managers often take staff and clients out for meals. They occasionally provide a tip when paying the bill via their company credit card. We are comfortable with accounting for the client and employee components of the meal, but how is the tip component treated? We assume it's non-GST, non-FBT & non-deductible. Can some confirm this?

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1,353 views
1 replies

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SandraATO(Community Support)Community Support
27 Mar 2024

HI @JacquiSan


Wow where to start.


  1. For a restaurant if the tip is voluntary then there is no GST. But if the tip is a pre-set amount, a service fee or similar it will be subject to GST.
  2. Tips do not fall under a FBT event.
  3. Yep, your correct it is a non-deductible item.


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Most helpful reply

SandraATO(Community Support)Community Support
27 Mar 2024

HI @JacquiSan


Wow where to start.


  1. For a restaurant if the tip is voluntary then there is no GST. But if the tip is a pre-set amount, a service fee or similar it will be subject to GST.
  2. Tips do not fall under a FBT event.
  3. Yep, your correct it is a non-deductible item.


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How are Restaurant Tips treated for FBT purposes? | ATO Community