Coming into the festive season many businesses are planning their Christmas party for their staff.
While it is important to take the time to celebrate this season, it pays to be aware of the tax implications of such celebrations.
Fringe Benefits Tax (FBT) applies where an employer provides a benefit to an employee other than their regular salary or wage.
The costs (such as food and drink) associated with Christmas parties are exempt from FBT if they are provided on a working day on your business premises and consumed by current employees. A taxable fringe benefit will arise in respect of an associate of an employee who attends the party if not otherwise exempt under the minor benefits exemption.
Please click here to read more about how this may impact your Christmas parties this year.
As this area can be quite complex if you have any queries or require any assistance at all please do not hesitate to contact our office on 9387 5637.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.