Making the Festive Season Tax-Friendly

Christmas parties are a fantastic way to reward your team, but they can come with potential FBT liabilities. By understanding the rules, you can strike a balance between rewarding your staff and minimising tax obligations.

On-Site Parties:

  • Exempt from FBT if held at the workplace for employees on a working day.
  • Costs for associates or contractors may still attract FBT.

 
Off-Site Parties:

  • Expenses under $300 per person may qualify for the minor benefits exemption.

 
Gifts:

  • Non-entertainment gifts under $300 (e.g., gift cards, hampers) are FBT-free.
  • Entertainment gifts (e.g., event tickets) are only exempt if they meet minor benefits criteria. 

 
Key Tax Notes:

  • FBT-exempt expenses are not deductible or GST-claimable.
  • FBT-liable expenses allow deductions and GST.

 
If you require any assistance in determining your exposure to FBT please contact our office.