Work Christmas Parties and FBT 2020

'Tis the season to be jolly!' 

If you're involved in the administration of fringe benefits tax (FBT) for your organisation, be sure to plan ahead and consider the FBT implications of providing Christmas parties and gifts. 

There is no separate fringe benefits tax (FBT) category for Christmas parties and you may encounter many different circumstances when providing these events to your staff. Fringe benefits provided by you, an associate, or under an arrangement with a third party to any current employees, past and future employees and their associates, may attract FBT. 

When planning your Christmas party list and checking it twice, consider:

• How much it costs 
• Where and when it is held - a party held on business premises on a normal workday is treated differently to an event held outside of work 
• Who is invited - is it just employees, or are partners, clients or suppliers also invited? 

Christmas is the season of giving, however, Christmas presents or gifts may also attract FBT. You'll need to consider:

• The amount you spend
• The type of gift - gifts of wine or hampers are treated differently to gifts like tickets to a movie or sporting event 
• Who you are giving the gift to - there are different rules for employees and clients or suppliers 

Don't get your tinsel in a tangle this festive season, start planning now for how much FBT you will have to pay on top of the costs of the function and gifts. 

For further information please visit the ATO website. 

The Money Edge | Bundaberg