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