Employee Christmas Parties and Gifts – Any FBT?
The Christmas break-up party and/or gifts to employees can be exempt from Fringe Benefits if a few rules are followed. The cost can be exempt as either an exempt property benefit or an exempt minor benefit.
Exempt Property Benefits
- Costs like food and drinks provided for employees as part of a Christmas party, on a working day on business premises and consumed by current employees of that business.
Exempt Minor Benefits
(Applicable when the property benefits exemption doesn’t apply, i.e. because the party is held at a restaurant or separate venue).
- Cost per employee must be less than $300 (GST inclusive)
- Associates of employees such as spouses and children are regarded as employees (hence the limit for an employee and partner would be $300 each)
Gifts are also considered separately from the Christmas party, so provided the cost of a gift and the party are each less than $300, then both would be exempt from FBT.
The minor benefits threshold of less than $300 applies to each benefit provided, not to the total value of all associated benefits.
Hot Issues
- FBT Reminder – Odometer Reading
- ATO’s debts on hold campaign prompts new IGTO guidance
- A comprehensive collection of small business benchmarks
- The 2025 Financial Year tax & super changes you need to know!
- Underperforming employees: When can you terminate?
- A comprehensive list of guides to industry specific tax deductions.
- ‘Renewed concerns’ about economy sees consumer sentiment dip: Westpac
- Oldest Buildings in the World.
- Small businesses may ‘collapse under strain of payday super’, IPA warns
- ATO’s hands tied with scrapping on-hold debts, expert says
- What Drives Your Business Growth and Profits?
- Australian Taxation Office (ATO) shifting to firmer debt collection activity
- Why employee v contractor comes down to fine print
- Sharing economy reporting regime for platform operators
- Countries producing the most solar power by gigawatt hours
- Illegal access nets $637 million
- Accessing superannuation benefits.
- Does your business have a company Power of Attorney?
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- GrantConnect
- 2 in 3 SMEs benefit from instant asset write-off, survey reveals
- Updated guidance on R&D claims
- Do you know how to recover debts?
- Wheat Production by Country
- Types of small business benchmarks
- What is a Commercial Lease?
- ATO warns advisers against suspect R&D tax claims
- Vimeo test
Article archive
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
October - December 2021 archive
- Our 2021 Advent Calendar.
- ATO flags focus areas for combating $33.5bn ‘tax gap’
- Business Resources - Grants, Assistance, Resources and more.
- Employee Christmas Parties and Gifts – Any FBT?
- FBT – Christmas Parties and Taxi Fares
- How the best firms are supporting the mental health of their employees
- Asian Economies (1960 - 2020)
- Making the festive season less taxing
- Why more Millennials are turning to SMSFs
- Hardship priority processing of tax refunds
- Business valuations: Tips, tricks and traps
- Government moves to scrap SG $450 threshold
- World's most productive countries
- Superannuation changes - Superannuation guarantee (SG)
- Unused Super Contributions
- Main residence exemption myths and misconceptions
- ATO extends COVID-19 relief for SMSFs
- Treasury consults on increase to charities financial reporting threshold
- Greenhouse gas emission by country since 1880
- ATO announces STP Phase 2 blanket deferral
- Reminder: super changes for the 2021 financial year
- Recontributions of COVID-19 early released super
- Working from home during a COVID-19 lockdown: Can you claim a tax deduction for rent?
What our clients say about us