The holidays might be festive, but the tax department thinks in fiscal terms even with festivities well underway. Companies and business owners should remember there might be tax implications to their decisions during the end of year activities. Employee celebrations, parties and the like hosted by you for them, are a Fringe Benefit under the Australian tax code. That means Fringe Benefit Tax is due on them unless the cost per employee is under three hundred dollars. Client party costs aren’t taxable, but they’re also not deductible.
Key Takeaways:
- Off site employee functions are a fringe benefit under Australian tax rules and are taxable, unless the per employee cost is under $300.
- Client functions, such as client events you host, are not taxable but they’re also not deductible.
- The best advice for navigating what is or isn’t taxable comes from an accountant so consult one to be sure.
“Your business can’t claim a deduction for gifts of capital items, such as piece of technology (a tablet computer, for instance) and nor can you claim a deduction if the gift is for private purposes.”
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