Find out if your staff parties, recreational activities and employee gifts will attract FBT.
As the end of year approaches, many businesses celebrate with staff parties, events and gifts to recognise and reward their employees.
If you’re planning an end-of-year workplace celebration, you should consider if the benefits you provide attract fringe benefits tax (FBT).
This will depend on:
the amount you spend on each employee
when and where your event is held
who attends the event
the value and type of gifts provided.
When FBT may not apply
If your business holds a workplace celebration or provides staff with gifts, these may be exempt from FBT in some situations. This can include when you provide:
food and drink to your employees or associates (such as partners) off your business premises which costs less than $300 per person and qualifies as a minor benefit
infrequent gifts to your employees with a value of less than $300 per person and qualifies as a minor benefit
recreational activities (such as golf) which cost less than $300 per person and qualify as a minor benefit
benefits to your business clients, as they are not subject to FBT.
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