It’s that time of year for Christmas parties and corporate gifts.
Building on our colleague’s recent article “Don’t let the FBT Grinch Steal your Christmas” we had some additional fringe benefits tax (FBT) stocking fillers for you to consider:
- Before letting the planning of work Christmas parties snowball, be aware that functions costing less than $300 per head can be exempt under the minor benefits exemption depending on what is provided and which taxable value method you use. You better watch out or you might cry – the threshold is goods and services tax (GST) inclusive. So if the benefit is a GST creditable benefit (e.g. alcohol) the GST exclusive budget is $271.81. If the benefit is not a GST creditable benefit (e.g. a gift card) the budget will be $299.
- The Christmas spirit of giving is in the air but apart from considering gifts you give to your own employees, you may also need to think about gifts given by other organisations to your employees. Don’t get caught out by the arranger provisions, they are broader than you might practically think and include scenarios where the employer participates or facilitates the provision of the benefit and knew or ought reasonably to have known about the arrangement.
- We had all hoped the Australian Taxation Office (ATO) Santa would bring us a present in the form of some practical compliance guidance. Unfortunately, we were recently advised that the ATO are unable to provide a safe harbour for the minor benefits rule due to the diversity of minor benefits provided by employers. It is not known whether another project will be generated in time to come, however we will keep you updated.
Keep these pointers in mind and have yourself a merry little Christmas!