Planning a staff Christmas party?

As the end of year approaches and you plan workplace celebrations, it is important to understand how fringe benefits tax (FBT) may apply.

Staff Christmas parties, recreational activities and employee gifts can sometimes be considered entertainment for tax purposes. Depending on the cost, the location and who attends, your business may have FBT obligations. Being aware of the rules early can help you avoid unexpected costs.

The Australian Taxation Office (ATO) has put together a handy guide on what qualifies as entertainment and how to manage your tax obligations during the holiday season.

To learn more and view the guide, visit the ATO website.