Gifts
If you give your staff Christmas presents, you won't be subjected to FBT as long as the value of each gift remains under $300 per person, and it would not be considered a fringe benefit.
Holiday as a Reward
You may want to reward employees with a holiday as an incentive or bonus. However, this can also lead to FBT implications.
Let’s say that you offer a holiday reward to employees who achieve a set sales target. If the value of each holiday package is over $300, FBT applies to the accommodation and tickets provided to your employees who meet the sales target.
The minor benefits exemption doesn't apply since the value exceeds $300. This means you’re liable to pay the FBT, but you can claim income tax deduction on the FBT you pay.
For more information on other holiday implications read our guide to public holiday pay.
Afternoon Tea
Celebration afternoon teas on business premises can be a great way to mark special occasions, like weddings or even Christmas, and involve employees, associates, and clients.
Imagine you’re hosting an informal event on the business premises to celebrate the holiday season. This event includes drinks and finger food and is attended by your employees, associates, work colleagues, and clients. The cost is $35 per person.
Food and drink provided to employees on your business premises during a working day is exempt from FBT. The same applies to the food and drink given to associates since it is only $35, as it is considered a minor benefit. There is no FBT on benefits provided to clients.