WEIGHT WATCHERS PROGRAMMES MAY BE EXEMPT FROM FBT
9 August 2006
The ATO has recently indicated that the provision of weight watcher programmes may be exempt from FBT in certain circumstances.
Weight Watchers is in the business of providing counselling services to the general public with respect to weight-loss management, and the promotion and achievement of a healthy lifestyle. As an extension of these business activities, Weight Watchers is proposing to make available an 'At Work' program to assist employers in achieving their aim of improving the quality of their employee's work performance.
The key features of the proposed arrangementand consiered by the ATO are as follows:
a) the 'At Work' program will be available for employers who have an objective, purpose, plan or policy to improve or maintain the quality of the performance of the employees' duties through a focus on the employee's health and fitness;
b) the employer will enter into a contract with Weight Watchers for an 'At Work' program;
c) under the terms of the contract the employer will be liable to pay Weight Watchers for the services provided during the course of the program;
d) each program will generally last for 12 to 14 weeks, although individual programs may be shorter or longer depending on the requirements of the counselee, and will involve employees attending weekly meetings on the employer's business premises;
e) the meetings will be held in either a group format or as one-on-one counselling sessions depending on the needs of the individual counselees;
f) the meetings which will be held either before work, during lunch, during regular business hours, or immediately after work will:
(i)focus on matters relating to health and fitness, such as weight loss, healthy eating and exercises; and
(ii)include a confidential weigh-in, lecture and discussion;
g) at these meetings, a specially trained leader, using proven Weight Watchers techniques will discuss topics such as:
(i)coping with coffee breaks;
(ii)surviving the lunch hour;
(iii)fitting exercise into a busy schedule;
(iv)maintaining motivation; and
(v) dealing with the effects of time pressure on eating habits;
h) Weight Watchers will provide performance data to the employer for agreed periods which will include information on:
(i)the number of meetings held;
(ii)number of meeting attendees; and
(iii)weight loss outcomes by meeting; and
i) Weight Watchers will appoint a national account manager to work with the employer to ensure the program achieves the desired outcomes.