Don’t forget to consider fringe benefits tax (FBT) obligations when organising office Christmas parties and gifts for your employees and associates.

Depending on the circumstances, these activities may create FBT liabilities. For example, they may have an FBT obligation if:

  • the party is held off the business premises
  • the party costs $300 or more per head
  • you give your employees a Christmas gift

The Australian Taxation Office’s fact sheet – Fringe benefits tax and Christmas parties outlines the possible FBT implications.