Who’s Naughty or Nice this festive season?

On December 17, 2015 By Rocky Singh

Christmas Image

Christmas parties and giving the gifts.

It’s that time of year again. December has come and with it all joys of Christmas and New Year. For businesses, Christmas is always good time to reward employees by throwing a Christmas Party or giving out gifts. When it comes to planning the Christmas Party, there is more to think about finding out who’s been naughty or nice.

According to Australian Taxation Office, you may need to consider if you will able to claim the tax deductions or need to pay Fringe Benefits Tax (FBT) when rewarding your employees and associates.

Points for your consideration in relation to work Christmas party:
how much it costs
where and when it is held – a party at work on a normal work day is treated differently to an event outside of work
who is invited – is it just employees or are partners, clients or suppliers also invited?

Points for your consideration in relation to Christmas gifts:
the amount you spend
the type of gift – gifts such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event
who you are giving the gift to – there are different rules for employees and clients/suppliers.

Applications of exemptions to Christmas parties & gifts:

Consider whether property or minor benefits exemptions apply.
The minor benefit per person is less than $300
Whether benefit is provided to associates of employees
Gifts given at a Christmas party are treated as a separate benefit
If meal, accommodation, taxi or travel are provided, there are separate benefits for the <$300 test, but the total value must also be considered

For further information on Fringe Benefits Tax, please contact our office:
343 Maundrell Terrace, Aspley
P: (07) 3160 8474


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