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When it comes to planning for the work Christmas party, there is more to it than figuring out what presents to get your Secret Santa.

You will need to consider if you will need to pay fringe benefits tax (FBT) when giving your employees gift or having parties this Christmas.

If you’re having a work Christmas party, you will need to consider:

  • The total cost of the party.
  • Where and when you will be having it – having a party during a workday is usually treated differently to a party outside of work.
  • Who will be invited – will it just be employees? or will partners, clients, and/or suppliers also be invited?

If you are going to be giving Christmas gifts, you will also need to consider:

  • The amount you will on the gifts.
  • What type of gift it will be – gifts such as wine or even hampers are usually treated differently to gifts like movie tickets or sporting events.
  • Who the person receiving the gift is – there are usually different rule when giving gifts to employees compared to giving gifts clients or suppliers.

For more information, go to https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/In-detail/FBT-and-Christmas-parties/

Categories: Tax

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