1300 GRIMA TAX (1300 474 628) emma@grimaaccounting.com.au

Be Jolly at Christmas and Tax Free!!

Nov, 2018

Top Tips at Christmas for Employers to avoid FBT and be tax deductible!!

We all love to show our appreciation to current staff and their partners but depending upon how you do it, can have various tax consequences.

FBT means Fringe Benefits Tax and even though it’s a complex area of law, at Grima Accounting & Taxation we have tried to put it in simple terms as our motto states

“Tax Solutions Made Simple”!!

Christmas Parties

Onsite or Offsite Employer Premises

Does it matter where the party is?

No, it is Indifferent if price per head is less than $300 per person attending.

Its still meal entertainment and no FBT, no tax deduction and no GST if less then $300 either way.

If over $300 per person, you will be subject to FBT, able to claim tax deduction and GST claimable

So in summary, the $300 per head limit is important here.

What if Clients are invited to the Party?

No FBT, No Tax Deduction and No GST claimable

Christmas Gifts

Is the GIFT providing entertainment eg, movie ticket, holiday voucher, club membership?

If yes, valued less than $300 per person then No FBT, No Tax Deduction and No GST claimable.

Is the GIFT a hamper, bottle of wine, flowers and shopping gift vouchers?

If yes, this is best option as no FBT, tax deductible and GST credits claimable

Christmas Bonuses

If you provide any staff with a cash bonus, it must go through payroll and register it as a bonus wage, appropriate tax also to be taken out.

If a bonus paid is not a reward of effort/skill, super doesn’t have to be payable however, you must document appropriate evidence and speak to your accountant to verify.

Contact us today to verify where to allocate the above in your accounting system and ensure processed correctly.

Tax Tips Tuesday will resume on Tuesday 15th January so like our Facebook to go live with me, be interactive and learn more about you, tax and your business.


DISCLAIMER: Note, such advice above is general in nature and your specific results may differ and hence are not to be relied upon.

We’re Here to help

We are always happy to help small business & fellow community members.