Benefit paid to employees fall under the FBT implication, and so do Christmas parties. They are not treated differently.
Christmas parties are exempt from fringe benefit tax if they are provided on a working day, consumed by the employees at the workplace. This doesn’t include associates and business owners though.
The exemption is met if the benefit is below $300 for each employee, for each benefit provided. This also includes Christmas gift (like a nice, yummy Christmas ham!).
If the Christmas party is held outside the usual workplace such a restaurant or pub, it will be subject to FBT for the employees and associates unless the benefit is a minor benefit (less than $300 each).
Do you still have doubts? Contact us today or get in touch with your accountant!