Blog

The Festive season is upon us! A time of celebration and giving of gifts! 

As a Business, an Employer you might be planning a Christmas party and the giving of gifts to employees and Business Associates.

There are associated costs, and you might not be sure what falls under the ATO Rules. Here are some helpful tips. 

Christmas Parties and Gifts 

If your business holds a Christmas party:

• on a working day, on your business premises, and only for your current employees, you don’t pay fringe benefits tax (FBT) for the food and drink
• off your business premises, or the party includes associates of employees (such as their partners), you don't pay FBT if the party is a minor benefit – that is, the cost for each person is less than $300 and it would be considered unreasonable to treat it as a fringe benefit
• that includes clients, you don't pay FBT for the costs relating to the clients.

If you give your employees a Christmas gift, you don't pay FBT if the value of the gift is less than $300 per person and it would be considered unreasonable to treat it as a fringe benefit.

If the Christmas party is not subject to FBT, you can't claim income tax deductions for the cost of the party.

Have questions, want guidance or assistance contact Blackburn Accounting.  

We can help you with tax matters, decorations and gifting of gifts.