Tax and tinsel Q&As
Can you avoid giving the Australian Tax Office a gift this Christmas?
The top Christmas party questions.
What can I do to make the staff Christmas party tax deductible or tax-free?
Not have one? Ok, seriously, it’s likely that you will pay tax one way or another; it’s just a question of how. If you structure your celebrations to avoid fringe benefits tax (FBT), then you normally can’t claim a tax deduction for the expense or goods and services tax (GST) credits.
No FBT
If you host your Christmas party in the office on a working day, then FBT is unlikely to apply to the food and drink. Taxi travel that starts or finishes at an employee’s place of work is also exempt from FBT – helpful if you have a few team members that need to be loaded into a taxi after overindulging in Christmas cheer.
If you host your Christmas party outside of the office and keep the cost per head under $300 (the FBT minor benefit limit) then FBT often won’t apply to the cost of entertaining your employees.
But, if you do not incur FBT, you cannot claim GST credits or a tax deduction for the Christmas party expense.
What’s ahead for 2025?
The last few years have been a rollercoaster ride of instability. 2025 holds hope, but not a guarantee, of greater stability and certainty. We explore some of the key changes and challenges.
Find our more in our December newsletter.
Merry Christmas
We want to take this opportunity to wish you and your family a safe and happy Christmas.
It’s been an eventful and busy year. Let’s hope 2025 is a year of stability and peace.
We will look forward to working with you again in 2025 and making it the best possible year for you.
We wish you and your family the warmest of Christmas wishes.
Office closure over Christmas
Our office will be closed for Christmas from 12 noon 20th December 2024 and will reopen on Monday 13th January 2025.
