Can I claim my Christmas party as a tax deduction and what are the fringe benefit tax implications?

Generally speaking, if a party / function is held off the employer's premises and the cost per head is less than $300 the cost will be exempt from Fringe Benefits Tax (FBT).

Section 58P Fringe Benefits Tax Act 1986 (FBTAA 1986). However if the exemption is claimed then a tax deduction for the cost is not permitted, nor can the GST component be claimed.

If the party / function does give rise to a FBT liability then a tax deduction will be available and the input tax credits may be claimed (if registered for GST).

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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