Fringe Benefit Tax
Your business Christmas entertainment (party & gifts) are income tax deductible if they are subject to FBT. However, there would also be tax that is payable on this expense.
Some entertainment expenses can also be non-tax deductible such as ‘Exempt benefits or Minor benefits’. If each benefit provided to an employee is less than $300, the expense may be classified as Minor Benefits and therefore not tax deductible.
If you want to reward your employees for their efforts throughout the year and not sure of the tax implications, give us a call and we can help you choose the best way to reward your staff whilst keeping you happy on the tax side!