Employers need to consider fringe benefits tax (FBT) obligations when organising office Christmas parties and gifts for their 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
- they give their employees a Christmas gift
The attached ATO fact sheet Fringe benefits tax and Christmas parties outlines the possible FBT implications.