FBT- free gifts this Christmas
With Christmas spirits high, tax doesn’t usually come to mind when employers are buying gifts for their staff.
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.