Entertainment expenditure deduction: capped allowance for small expenses and a scaled deduction for larger outlays. The amendment establishes a two-tier deductibility rule for entertainment expenditure: full deductibility for expenditure up to a baseline amount, and for excess expenditure a deduction equal to the baseline plus a specified proportion of the excess. It also defines entertainment expenditure to include entertainment allowances to employees, entertainment expenditure incurred by employees or others for the assessee's business, and all hospitality provision by the assessee, excluding food or beverages supplied to employees at their place of work.