If you’re holding a staff party this year (employees and partners only), it depends on where it’s held, the cost per head, and whether alcohol is involved. Unfortunately these are usually not tax deductible.
If you hold a party at your premises during office hours and no alcohol is involved then the cost is usually tax deductible and no FBT is payable (providing it costs less than $300 per person).
If you hold a party externally it is considered “entertainment” and is therefore not a tax deduction, and FBT is payable if it goes over $300 per person. Again, if you’re holding a party it’s best to keep your costs under $300 per person to avoid paying FBT.
Unfortunately it’s not very straight-forward! If you’re unsure about the tax deductibility or FBT on your intended gift/s or party please give us a call on (08) 9226 0332.
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