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.
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