FBT- free gifts this Christmas
With Christmas spirits high, tax doesn’t usually come to mind when employers are buying gifts for their staff.
Employers can avoid FBT by providing employees with gifts that cost less than $300 per employee. This threshold applies to each benefit provided, not to the total value of all associated benefits. Employers should also be aware that some fringe benefits may need to be included on payment summaries.
Non-entertainment gifts below the threshold price are usually exempt from FBT, and an employer can also claim tax deductions and GST credits for every non-entertainment gift they give to staff members. ‘Nonentertainment’ gifts actually cover a wide range of presents such as hampers, wine, gift certificates, clothes, beauty products, and flowers. ‘Entertainment’ gifts would be things like tickets to the theatre, sports events, and concerts.
Need assistance and want to know more?
Contact Holmans today;
Holmans Noosa: (07) 5430 7600 or email info@holmans.com.au
Holmans Maroochydore: (07) 5451 6888 or email infohm@holmans.com.au