Everyone loves a good work Christmas party, but not all of your expenses may be tax deductible and potentially may also be at risk of Fringe Benefits Tax.
Provided your work Christmas party is on premises during a working day, or offsite and a minor benefit (less than $300 per person) there will be:
If your work Christmas party is offsite but not a minor benefit (that is greater than $300 per person) there is a risk that there may be FBT payable on the benefit provided to employees or their associates. Where FBT is payable, the party expenses are tax deductible and GST credit is claimable. There won’t be any FBT for clients who attend, and the client’s benefits will also be not tax deductible.
Along with Christmas parties, many employers will also provide staff and clients with gifts. These rules can be a bit more complicated.