As the festive season draws closer, we would like to remind
businesses of the fringe benefits tax (FBT) issues associated with
this time of year.
The rule of thumb is that if you provide a fringe benefit (i.e.
non cash benefit) to an employee which is not exempt or
concessionally taxed, you land up paying nearly the same amount in
FBT for every dollar spent – it is therefore important to
consider the FBT implications when providing staff gifts and
hosting parties in the lead up to Christmas.
CHRISTMAS GIFTS
Staff gifts (e.g. hampers, gifts cards, movie tickets etc.) are
generally subject to FBT unless the minor benefits exemption
applies. Under the minor benefits exemption, you can provide gifts
to staff up to a value of $299 (incl. GST) without incurring an FBT
liability on the provision of the gift. Mistakes often seen when
trying to claim this exemption include:
