Menu
Govt plays Santa

Govt plays Santa

Coming up to the Christmas season has many employers looking at ways to reward staff that don't involve the large bonuses of yesteryear. It may please a few of them to know that the Commissioner of taxation is not going to hit them with fringe benefits tax if they instead decide to buy their loyal employees a small gift. Peter Bembrick, tax expert with HLB Mann Judd Sydney, said Christmas presents to employees are generally tax-deductible if they are worth less that $100. Bembrick said the rules for giving employees gifts are fairly complex, but employers can escape paying tax on gifts if they: confine gifts of under $100 to special occasions, and not make a regular payment; give gifts other than those produced by the business to sell to the public; give food and drink hampers rather than forking out for entertainment costs; keep the "per head" cost of Christmas parties below $100.


Follow Us

Join the newsletter!

Error: Please check your email address.
Show Comments