Nicholas Kohler Director

E [email protected]
T +61 (8) 8110 6012
F +61 (8) 8110 6013

December 2023

Newsletter; Christmas gifts/bonuses and Fringe Benefits Tax (FBT)

There is a minor benefits FBT exemption which means that, in most cases, employers can spend less than $300 per employee without FBT being applicable.  This threshold relates to each benefit provided, not to the total value of all associated benefits provided to employees and their families.

The exemption applies to benefits that are provided infrequently and irregularly so a gift card under this amount could be:

- claimed as a tax deduction;

- exempt from FBT; and

- not assessable to the recipient.

Christmas bonuses paid to employees should be processed through payroll where PAYG withholding and superannuation apply.

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