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Quarter 4 of, 2015 archive
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FBT – Christmas Parties and Taxi Fares
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Merry Christmas for 2015 and Happy New Year.
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Common errors in claiming deductions for super contributions
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Employee Christmas Parties and Gifts – Any FBT?
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Collectables Require Action Now
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Why the ATO’s new powers make SMSF compliance more important than ever
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Self Managed Superannuation Funds – Is it for Retirement?
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ATO warns against misusing partnerships
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The Scammers Shame
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ATO offers SMSF 'unwinding' for aggressive tax arrangements
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Salary and Wages PAYG Shortfall
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SuperStream
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Australian Taxation Office (ATO) Telephone Scammers – BEWARE!
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Navigating the BDBN minefield
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SMSFs warned on emerging LRBA issue
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Short Access to Term Deposits
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Retirees taking super in lump sum is a ‘myth'
Employee Christmas Parties and Gifts – Any FBT?

The Christmas break-up party and/or gifts to employees can be exempt from Fringe Benefits if a few rules are followed.

       

The cost can be exempt as an exempt property benefit or an exempt minor benefit.

Exempt Property Benefits

  • Costs like food and drinks for employees as part of a Christmas party, provided on a working day on business premises and consumed by current employees of that business.

Exempt Minor Benefits

Rule can apply when the property benefits exemption doesn’t apply, because the party is held at a restaurant or separate venue.

  • Cost per employee must be less than $300 (GST inclusive)
     
  • Associates of employees such as spouses and children are regarded as employees (hence the limit for an employee and partner would be $300 each)

Gifts are also considered separately from the Christmas party, so provided the cost of a gift and the party are each less than $300, then both would be exempt from FBT.

The minor benefits threshold of less than $300 applies to each benefit provided, not to the total value of all associated benefits.

 

Written by a Melbourne based accounting firm