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

Phone +61 3 9428 1062


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