FBT & Staff Xmas Parties
It that time of year again when we celebrate the Xmas season with our team, but don't forget Xmas parties and gifts may attract and an FBT liability.
Entertainment expenses are generally not 'tax deductible' unless they are subject to Fringe Benefits Tax, and with the current FBT rate at 47% no-one wants to pay that level of tax on their office Xmas celebrations.
Factors that determine FBT liabilities include where the food and drinks are served, who is on the guest list and how much is spent per person.
How can you avoid falling into the FBT web?
stay below the minor benefit threshold of $300 per person, or
hold celebrations on your business premises and only invite current employees to access the exempt property benefit
For further information or assistance with updating your payroll systems contact Nicole at our office