News
Work Christmas parties and fringe benefits tax
With Christmas around the corner, small businesses will need to take into consideration if they will need to pay fringe benefits tax (FBT) when rewarding employees with gifts or parties.
With Christmas around the corner, small businesses will need to take into consideration if they will need to pay fringe benefits tax (FBT) when rewarding employees with gifts or parties.
For your work Christmas party, the ATO recommends that small businesses consider the following:
- How much the event costs
- Where and when it is held – a Christmas party on a normal working day can be treated differently to an event that is held outside of work
- Who is invited – will this be employees, or are their partners, clients, or company suppliers also invited?
For Christmas gifts, small businesses will need to give thought to:
- The amount spent on gifts
- Type of gift – gifts such as wine or hampers, for example, are treated differently to gifts like tickets to a movie or a sporting event
- Who is receiving the gift – there are different rules for employees, clients and suppliers
For more information, visit the ATO website.
Date published 25 Nov 2016 | Last updated 25 Nov 2016
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our multiple locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.