FBT Implications of Christmas Parties

FBT Implications of Christmas Parties

As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

  • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
  • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
  • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

 

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