Hot Issues
spacer
State and Federal COVID-19 support
spacer
Lockdowns and mental health
spacer
Unemployment rate falls to 12-year low
spacer
ATO issues warning to first-time investors
spacer
World's largest armies 1816 - 2020
spacer
Extra 'super' step when hiring new employees
spacer
Pitfalls and proposed changes in the use of R&D tax incentives
spacer
Government expands SME loan scheme eligibility
spacer
COVID-19 disaster payments to be tax-free: Prime Minister Scott Morrison
spacer
‘Nowhere to hide’: New gig economy reporting regime set to debut
spacer
Hardship priority processing of tax returns
spacer
ATO Small Business Newsroom - July / August
spacer
Videos and other resources for our clients
spacer
‘Mammoth consequences’: ATO’s NALI ruling draws ire from accountants
spacer
Superannuation Guarantee Rates Reminder
spacer
NSW support measures, plus update for payroll tax.
spacer
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
spacer
Year-end tax planning
spacer
Home Office & end of 2021 tax year
spacer
ATO extends STP finalisation due date
spacer
Super transfer balance cap increase from 1 July 2021
spacer
ATO extends Division 7A COVID-19 relief
spacer
Tax implications - more than one job
spacer
Tax mix to rely more heavily on income tax as the Treasurer ducks austerity
spacer
10% Super Guarantee from 1st July 2021
spacer
End of year financial strategies
spacer
Closely held payees: STP options for small employers
Article archive
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 4 of, 2015 archive
spacer
FBT – Christmas Parties and Taxi Fares
spacer
Merry Christmas for 2015 and Happy New Year.
spacer
Common errors in claiming deductions for super contributions
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
Collectables Require Action Now
spacer
Why the ATO’s new powers make SMSF compliance more important than ever
spacer
Self Managed Superannuation Funds – Is it for Retirement?
spacer
ATO warns against misusing partnerships
spacer
The Scammers Shame
spacer
ATO offers SMSF 'unwinding' for aggressive tax arrangements
spacer
Salary and Wages PAYG Shortfall
spacer
SuperStream
spacer
Australian Taxation Office (ATO) Telephone Scammers – BEWARE!
spacer
Navigating the BDBN minefield
spacer
SMSFs warned on emerging LRBA issue
spacer
Short Access to Term Deposits
spacer
Retirees taking super in lump sum is a ‘myth'
Employee Christmas Parties and Gifts – Any FBT?

The Christmas break-up party and/or gifts to employees can be exempt from Fringe Benefits if a few rules are followed.

       

The cost can be exempt as an exempt property benefit or an exempt minor benefit.

Exempt Property Benefits

  • Costs like food and drinks for employees as part of a Christmas party, provided on a working day on business premises and consumed by current employees of that business.

Exempt Minor Benefits

Rule can apply when the property benefits exemption doesn’t apply, because the party is held at a restaurant or separate venue.

  • Cost per employee must be less than $300 (GST inclusive)
     
  • Associates of employees such as spouses and children are regarded as employees (hence the limit for an employee and partner would be $300 each)

Gifts are also considered separately from the Christmas party, so provided the cost of a gift and the party are each less than $300, then both would be exempt from FBT.

The minor benefits threshold of less than $300 applies to each benefit provided, not to the total value of all associated benefits.

 

Written by a Melbourne based accounting firm