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4.7 Hospitality and Official Functions

4.7.1 Hospitality (including Entertainment) - Provided by the Minister

Policy

Hospitality includes entertainment (which is the term used for Fringe Benefits Tax purposes) and is generally the provision of meals and beverages but may include other expenditure (eg. event tickets) where they have a clear relationship to the Minister's portfolio. Hospitality also includes the provision of items such as travel and overnight accommodation.

Hospitality is for the purpose of furthering official business with non-government attendees. It must relate to carrying out official duties and fulfilling official responsibilities in relation to the functions and activities of the Minister's portfolio. Expenditure must always be reasonable and appropriate to the circumstances.

Hospitality should not be seen as a substitute for general business meetings which would ordinarily be conducted in the workplace. The number of government attendees should be limited to those who can assist in the performance of official duties and should be kept to a minimum.

Government attendees includes (but are not limited to) Queensland Government Ministers, Parliamentary Secretaries, Ministerial staff, Departmental staff (including Departmental and Ministerial contractors and consultants), Commissioners, board members and other persons on the public payroll, a Minister's partner and a Parliamentary Secretary's partner. Part-time Board Members would not normally be considered government employees if they are not public servants and government
remuneration is not a significant part of their income.

The provision of official hospitality to Party political persons should only be undertaken where there is a clear official purpose related to the Minister's portfolio.

Tipping is not allowable in Australia. However, tipping is likely to be be appropriate when providing hospitality overseas.

Alcoholic drinks only hospitality is considered a private expense. Tea, coffee and non-alcoholic refreshments only hospitality is appropriate.

All hospitality must be approved by the Minister.

Hospitality for Ministerial staff, Departmental staff or other persons on the government payroll where there are no non-government attendees is not covered by this schedule. See EXPENSES RELATING TO A MINISTER'S OFFICE - Working meals.

Reasonable limits

A general limit of $120 per person (including meals and beverage) applies. It is recognised that instances will exist where this limit will be insufficient and a brief explanation of the higher cost is to be included with the authorisation.

As a general rule the value of alcoholic beverages should not exceed the value of meals.

In-house Catering

The use of in-house catering can result in substantial cost savings and is encouraged. Where in-house catering is utilised, often the cost of alcohol may exceed the cost of food. It should be noted however, that alcoholic drinks only hospitality is still a private expense.

Procedures

For each instance of Hospitality a 'Hospitality Certification' will be required (see APPENDIX 7 - Hospitality Certification (PDF, 161 KB)). All sections of this form must be completed. When detailing the purpose of hospitality, it is important to provide an adequate description that allows the official purpose to be identified and a reasonable association to be made with the functions and activities of the Minister's portfolio. When identifying names of participants, only include persons on whose behalf expenditure was incurred.

As a general rule hospitality costs will be a Ministerial related cost. However, there will be instances where the nature of the function will clearly indicate that it be a Departmental-Related or Whole-of-Government Related cost (see EXPENSES RELATING TO A MINISTER'S OFFICE - Expenditure - allowable).

Ministers should not seek to use these categories of expenditure to avoid incurring expenditure that should properly be a charge to the Office of the Minister.

Examples

  1. A meal to celebrate achievements or special occasions will only be allowable where there is a clear relationship to portfolio business or a Whole or Government activity and is required for official purposes, eg. Queensland Day Dinner.
  2. A meal with a local candidate to discuss campaigning issues is not allowable.
  3. A Minister and four staff members attend a meeting with one industry leader appears excessive.
  4. A lunch time meeting for Minister, staff and two industry stakeholders where meal costs are $80 and beverages are $160 appears excessive.
  5. Meal and beverage costs over $120 per person when entertaining in Japan would not generally be considered excessive.
  6. Hospitality costs in a five star Melbourne hotel may reasonably exceed $120 per person due to high prices of meals.
  7. Hospitality in a Brisbane restaurant (not Parliament House), where there are only government attendees will not be allowable, however, if at night, meal allowances may be claimable.
  8. Official hospitality of a part-time Board Member (eg. Queensland Community Corrections Board) who is a senior private sector person would be appropriate.
  9. Christmas parties and Melbourne cup parties are not official hospitality unless there is a clear official purpose.

4.7.2 Hospitality (including Entertainment) - Provided by Staff and Parliamentary Secretaries

Policy

The provision of entertainment (including working meals) is generally reserved for the Minister. It is therefore prohibited for Ministerial staff or Parliamentary Secretaries to incur hospitality costs except where the Premier has given prior approval. This approval may be in the form of:

  1. a permanent basis, (a specific limit per person or per office may be applied); or
  2. a one off basis.

Hospitality should be limited to the provision of meals and beverages.

If the Premier approves that a Parliamentary Secretary or Ministerial staff person can entertain, the policy and procedures in Section 4.7.1 - Hospitality - provided by the Minister and Section 4.7.4 - Working Meals will apply.

4.7.3 Hospitality (including Entertainment) Benefits Received

Hospitality benefits include entertainment (which is the term used for Fringe Benefits Tax (FBT) purposes) and are generally received in the form of meals and beverages but also include (but are not limited to): travel, accommodation or access to a private spectator box at a sporting or other venue, tickets to cultural events, or use of facilities.

As hospitality benefits have no enduring value they cannot be dealt with as a physical asset of the receiving agency as is the case for tangible gifts. Nevertheless, acceptance of such intangible benefits has the potential to give rise to a real or perceived conflict of interest or future obligation for a Minister or staff.

Hospitality benefits received of a purely personal nature from friends or family are not covered by this policy.

The following acceptance and non acceptance principles apply to the receipt of hospitality benefits as defined above.

Acceptance Principles

A hospitality benefit may be accepted if it complies with all of the following principles:

  1. refusal would offend; or
  2. it conforms to normal business practice or other cultural practices of the giver; and
  3. it does not influence a Minister or staff in such a way as to compromise impartiality or create a conflict of interest; and
  4. it is received in the course of duty in respect of, portfolio responsibilities or representing the State or the Premier has approved attendance.

Ministerial staff must notify either the Senior Advisor or Minister upon receipt of any invitation of hospitality benefits. They must also seek the approval of the Minister to accept any offers.

Non-Acceptance Principles

A hospitality benefit may not be accepted if any of the following principles apply:

  1. it is intended, or is likely to cause the recipient to act in a partial manner in the course of their duties; or
  2. the offer is concealed ; or
  3. it is able to be exchanged for money.

4.7.4 Working meals

Policy

Working meals are allowable where, for official purposes staff are required to work through their normal meal periods and meals are then supplied. Working meals are not a substitute for normal Office business, and as such, should not be a regular occurrence.

Official morning and afternoon teas may also be considered working meals where a clear business need exists.

Costs of working meals may be charged to the Office of the Minister only when:

  1. they are for a clear business purpose;
  2. they constitute modest hospitality that is appropriate to the circumstances and time of day;
  3. meals are held in-house (ie. in the Ministerial Office, Departmental Office or at Parliament House only); and
  4. they are infrequent.

All expenditure on working meals must be approved by the Minister.

Where working meals are provided, staff will not be able to claim a meal allowance.

Reasonable Limits

Allowance rates set out under the Directive for travel meals are to be strictly observed as a maximum per person cost for a working meal.

Normal meal period Maximum
Breakfast Staff directed to attend by 7.30am $21.10 No alcohol
Lunch 12noon to 2pm $23.65 No alcohol
Dinner After 6pm $40.65 (can include alcoholic beverages)

Costs for morning and afternoon teas, to be considered modest, would normally be significantly less than the per head rate provided for Breakfast ($21.10).

Procedures

A Hospitality Certification must be completed and forwarded to Ministerial Services for all working meals as circumstances may require FBT to be calculated.

See APPENDIX 7 - Hospitality Certification (PDF, 161 KB)

Examples

Reasonable circumstances where working meals may be provided include:

  1. staff are working through lunch on an urgent issue and sandwiches are brought into the office;
  2. a morning tea to foster good relations with staff, (eg. a new Minister is meeting divisional staff, a Minister is visiting regional areas and meeting staff);
  3. staff are required to work after 6pm on an urgent issue and a meal is brought to the Office; and
  4. staff are assisting the Minister with legislation whilst Parliament is in session late into the night.

4.7.5 Political Party meetings

See Section 4.10.1 Party Political Meetings

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Last reviewed: 17 July, 2009

Last updated: 22 July, 2009

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