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No. Section 41 of the FBTAA applies to exempt an employer from FBT on meals provided to employees on a working day on the employer's business premises. Section 41 also exempts meals provided to employees in an in-house dining facility. This exemption is not affected by the repeal of section 64 from 1 April 1994.

An 'in-house dining facility' (as defined in subsection 51AE(1) of the Income Tax Assessment Act 1936 ) is a canteen, dining room or similar facility that is - (a) located on premises of the taxpayer or, if the taxpayer is a company, of the taxpayer or of a company that is related to the taxpayer; (b) operated wholly or principally for providing food and drink on working days - (i) in any case - to employees of the taxpayer; or (ii) if the taxpayer is a company - to employees of the taxpayer or of a company that is related to the taxpayer; and (c) not open to the public at any time.

Section 41 does not, however, operate to exempt from FBT a tax exempt body entertainment benefit within the meaning of Division 10 of the FBTAA. Example: Austco supplies meals to its employees at a staff canteen which falls within the definition of 'in-house dining facility'. Austco is not liable to FBT on the provision of the meals as any benefit is exempt under section 41 of the FBTAA.