The provision of a Christmas party to an employee may be a minor benefit and exempt if the cost of the party is less than $300 per employee & certain conditions are met. This provision also applies to the employee’s associate.
The provision of a gift to an employee at Christmas time, such as a hamper, may be a minor benefit that is an exempt benefit where the value is less than $300. Where the Gift is given at the Christmas Party each benefit can be considered separately.
Christmas party held at Your Premises On a Work Day:
Only Employees attend = NO FBT
Current Employees & spouses @ 180pp = NO FBT (minor exemption applies for spouse)
Employees, spouses & clients @ 365pp = Employee–NO FBT, Clients-NO FBT/no income tax deduction, Associate-FBT applies as value more than $300pp
Christmas Party held at Other Premises:
Only Employees attend @ 195pp = NO FBT(minor exemption applies)
Current Employees & spouses @ 195pp = NO FBT (minor exemption applies for both)
Employees, spouses & clients @ 365pp = Employee & Associate – FBT applies as value more than $300pp, Clients-NO FBT/no income tax deduction