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  • Christmas Parties

    21 February at 21:09 from atlas

    Australian Taxation Office, FBT & Christmas
    As business owners we have to think of the ATO, FBT & Christmas Parties!!!

    http://goo.gl/RqU54
    The provision of a Christmas party to an employee may be a minor benefit & exempt if the cost of the party is less than $300 per employee & certain conditions are met. This provision also applies to the employee?s associate.
    The provision of a gift to an employee at Christmas time may be a minor benefit that is an exempt benefit where the value is less than $300. Where the Gift is given at the Christmas Party each benefit can be considered separately.

    Christmas party held at Your Premises On a Work Day:
    Only Employees Attend = NO FBT
    Current Employees & spouses @ $180 pp = NO FBT (minor exemption applies for spouse)
    Employees, spouses & clients@ $365 pp = Employee -NO FBT
    Clients -NO FBT/ No income tax deduction - Associate ? FBT applies as value more han$300pp

    Christmas party held at Other Premises:
    Only Employees Attend @ $195pp = NO FBT(minor exemption applies)
    Current Employees & spouses @ $195 pp = NO FBT (minor exemption applies for both)
    Employees, spouses & clients@ $365 pp = Employee & Associate ? FBT applies as value more than$300pp ?
    Clients -NO FBT/ No income tax deduction