Giving Employees Gifts at Christmas Time.

7 December 2022

Admin User


Generally, the most tax effective outcome when providing Employees with gifts is to ensure that the following is adhered to:


1. The gift is less than $300, Goods and Services Tax (GST) inclusive.


2. The gift is provided infrequently or not on a regular basis.


3. The gift is not classified as entertainment.


4.  The gift is not provided as a reward for the employee services.


If the above is achieved, then generally a tax deduction will be available to the business / employer with no Fringe Benefits Tax (FBT) payable.



Non-Entertainment Gifts include:

  • Christmas Hamper
  • Bottle of alcohol 
  • Gift vouchers
  • Flowers
  • Food Items, i.e., chocolates


Entertainment Gifts include:

  • Tickets to sporting events
  • Tickets to the movies / musicals
  • Flight and accommodation for holidays
  • Memberships to a club


Please note that Gifts categorised as entertainment will not meet the requirements of a tax deduction. 


If you would like to discuss further please contact us:

McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD

www.mcnamaraandco.au/contact-us

Phone +61 3 9428 1062

Email admin@mcnamaraandco.au



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