Plan Your Staff Xmas Party with FBT in Mind

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Plan Your Staff Xmas Party with FBT in Mind

Are you?	- An employer planning a Christmas party for your staff?
At a glance:	- As the festive season approaches, the Tax Office is reminding businesses to consider the operation of Fringe Benefits Tax [FBT] when organising Christmas functions for employees and their associates.
You should:	- Be aware of the FBT exemptions that may apply to your staff Christmas Party. - Contact us if you require any clarification or advice.

1.	The Tax Office is reminding businesses that staff Christmas parties may attract FBT. However, there may be exemptions available.
2.	Generally, Christmas parties can be exempt under the property benefits exemption or minor benefits exemption.
3.	Exempt property benefits include the cost of food and drinks. The exemption applies where the benefits are provided on a working day and consumed by current employees on business premises.
4.	The minor benefits exemption applies where the cost of a function averages less than $300 per employee or their associate.
5.	In addition, the minor benefits exemption can be applied separately to gifts and food/drinks. Hence, where the cost of a Christmas gift and the cost of the party per employee are each under $300, both would be exempt from FBT.
6.	Visit the Tax Office website at http://www.ato.gov.au for further information on FBT.