M J Heywood & Co
Chartered Accountant
 

Address:
Suite 407
1 Princess St.
Kew, Vic. 3101

Phone:
613 9853 1234

Fax:
613 9853 1023

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Articles
Employee Christmas Parties and Gifts – Any FBT?
Salary Sacrifice - An introduction
8 Financial Tips For Young Adults
Merry Christmas and Happy New Year
Age Pensions
Commonwealth Seniors Health Card
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Tips For Buying The Perfect Investment Property
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 an exempt property benefit or an exempt minor benefit.

Exempt Property Benefits

  • Costs like food and drinks for employees as part of a Christmas party, provided on a working day on business premises and consumed by current employees of that business.

Exempt Minor Benefits
Rule can apply when the property benefits exemption doesn’t apply, because the party is held at a restaurant or separate venue.

  • Cost per employee must be less than $300
  • 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.

 



16th-December-2010