Heaney Business Group is here with our Tax Tip in relation to Work Christmas Parties & Fringe Benefits Tax
It’s that time of year, where you will be planning on rewarding your staff with a Christmas Party or Gift for their work throughout the year.
One thing that I bet is not on your party checklist is whether you have checked if there are any Fringe Benefits Tax (FBT) considerations that you need to be aware of ahead of end of year celebrations!
Even if your organisation is exempt from income tax there may be FBT implications.
The good news is that an FBT exemption may apply in your circumstances. These include:
- meal entertainment provided to workers by public benevolent institutions, public and non-profit hospitals, health promotion charities and public ambulance services, unless provided under a salary packaging arrangement
- gifts that qualify for the minor benefits exemption
Find out more about FBT via the ATO website:
- Fringe benefits tax and Christmas parties for tax-exempt bodies
- Fringe benefits tax and entertainment for government
- Fringe benefits tax and entertainment for non-profit organisations