Work Christmas Parties and Gifts

The season to be jolly is fast approaching! But you may need to ho-ho-hold-up before you start rewarding your employees with gifts or parties this Christmas.  It is important to note that fringe benefits tax may apply when providing all the Christmas trimmings.

So before you get your tinsel in a tangle, consider the following:

  1. How much it costs.
  2. Where and when it is held.  A party held on work premises on a normal work day is treated differently to an event outside of work.
  3. Who is invited.  Is it just employees or are partners, clients or suppliers also invited?

Similarly, where you provide Christmas gifts, you’ll need to consider:

  1. The amount you spend
  2. The type of gift.  Gifts such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event
  3. Who you are giving the gift to.  There are different rules for employees and clients/suppliers.

Follow the below links to learn more:

Fringe benefits tax and Christmas parties

Fringe benefits tax and entertainment for small business

Thoughts From Our Principals

Mark Semmens

Mark is a Chartered Accountant with a wealth of experience in accounting and taxation. Mark is a Member of Chartered Accountants Australia and New Zealand, the Tax Practitioners Board and the National Tax and Accountants Association.

Mark's blogs
Daniela Semmens

Daniela Semmens is a Co-Director of Semmens & Co. and joined the company as General Manager in 2017. Daniela is an Affiliate Member of Chartered Accountants Australia and New Zealand and also a Member of the Australian Institute of Project Management.

Daniela's blogs

Contact Us Today

For any enquiries into our team or our services please contact Semmens & Co. via email at or call us on 03 8320 0320

Contact form