ARTICLE · 09 JANUARY 2009

Reward Your Employees This Festive Season

Moore Australia

Explore more from Moore Australia

The Fringe Benefits Tax minor benefits exemption threshold is now $300 (previously $100). With this in mind, the value of minor and infrequent rewards and gifts that can be provided to your employees without you as the employer incurring any FBT liability is quite significant.

AustraliaTax

Michael Van Schaik

Author LinkedIn connections

Originally Published 5^th December 2008

With Christmas fast approaching it is useful to remember that the Fringe Benefits Tax ("FBT") minor benefits exemption threshold is now $300 (previously $100). With this in mind, the value of minor and infrequent rewards and gifts that can be provided to your employees without you as the employer incurring any FBT liability is quite significant.

The ATO released Taxation Ruling TR 2007/12 'Minor Benefits' on 19 December 2007, which highlighted the fact that the exemption provides opportunities for employers to spend much more on the provision of entertainment fringe benefits to their employees. The exemption only applies to employers who adopt the actual method of accounting for entertainment expenditure for the FBT year, which requires actual costs of the provision of the entertainment to be recorded. This benefit is particularly helpful as we are approaching the Christmas festive season where expenditure can be up to $300

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Part IVA: Federal Court Upholds The Commissioner’s Assessment Of The Hilton Hotel Sale

Corrs Chambers Westgarth

Is Cryptocurrency Property For The Purposes Of The Australian Tax Law?

NSW Court Of Appeal Expands Reach Of Payroll Tax Employment Agency Provisions - High Court Appeal Denied

Bartier Perry Solicitors

Spotlight On The Australian Tax Landscape: Three Recent Developments

Corrs Chambers Westgarth

Foreign Resident CGT Changes And Implications For M&A Transactions

Herbert Smith Freehills Kramer LLP

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

Comparative Guide

Tax

Comparative Guide

Tax Disputes

See more popular content from

Tax

Minimum Tax On Discretionary Trusts: What The Exposure Draft Means For Trustees

The Australian Government has released exposure draft legislation for a proposed 30% minimum tax on discretionary trusts, effective from 1 July 2028. Trustees now face three strategic pathways: remain within the minimum tax regime, restructure using transitional rollover relief, or elect into the new excluded election trust (EET) regime with restricted distribution flexibility.

Holding Redlich

Update On Status Of Key Tax Measures Announced In Budget 2026-27

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a

Holding Redlich

Cross-border software payments and royalties: implications of final taxation ruling and practical compliance guideline Read More

The Australian Taxation Office has issued its final ruling on cross-border software payments, dramatically expanding what constitutes a royalty subject to withholding tax. With retroactive application to July 2021 and a broad interpretation of copyright law, multinational companies face significant compliance risks and potential exposure across software distribution, cloud services, and digital intermediation arrangements.

Corrs Chambers Westgarth

Federal Budget 2026-27: Three Tax Changes Reshaping Investment, Trust Structures And Business Planning

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth

Holding Redlich

JONES DAY PRESENTS®: Navigating Australia's Toughening Tax Controversy Landscape (Video)

Australia's tax controversy landscape is becoming increasingly difficult for multinationals to navigate, with the Australian Taxation Office ("ATO") adopting sophisticated, assertive positions that test the limits of the law. Jones Day partners Lauren Moses and Niv Tadmore discuss the ATO's focus on transfer pricing, intangibles, and other cross-border issues, and they explain why understanding what drives the ATO is key to resolving disputes efficiently.

Federal Budget 2026–27: Key Tax Changes And What Clients Need To Know

On Tuesday, 12 May 2026, the Treasurer, Dr Jim Chalmers, handed down the 2026–27 Federal Budget. The Federal Budget introduces the most significant tax reforms aimed at reshaping how income and wealth are taxed in Australia. The Government is seeking to rebalance the system by reducing tax on income from work and increasing tax on income from assets, and then using that difference to fund personal tax relief and influence housing behaviour.

Bartier Perry Solicitors

Foreign Resident CGT Changes And Implications For M&A Transactions

Australia's foreign resident capital gains tax regime is undergoing its most significant expansion since 2006, with new rules commencing October 2026 that will fundamentally reshape how M&A transactions involving land-connected assets are structured and executed. The changes introduce a 365-day look-back test for determining whether shares or units constitute indirect Australian real property interests, broaden the definition of taxable Australian real property to capture energy, infrastructure and data-cen

Herbert Smith Freehills Kramer LLP

The ATO’s Firmer Approach To Small Business Debt Collection

The Australian National Audit Office's recent review of the ATO's management of small business collectable debt reveals significant findings that will reshape how tax authorities approach debt recovery. With small business debt reaching $35.9 billion and the ATO accepting all eight recommendations for reform, advisers and business owners face a new landscape of firmer collection activity and heightened accountability. Understanding these changes and their implications for unpaid tax liabilities, director pe

ATO audit warning - family trust elections - when an interposed entity election is appropriate

It is important to determine whether your arrangements within your family trusts are compliant with schedule 2F of the ITAA.

Pointon Partners

The law, defences and penalties for tax fraud and tax evasion in Australia

There are important differences between the terms tax fraud, tax evasion and tax avoidance.

Sydney Criminal Lawyers