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  • Fringe benefits tax and Christmas parties for tax-exempt bodies

    This information is for clubs, charities, government departments and other organisations which are wholly or partially income tax exempt.

    The fringe benefits tax implications of providing Christmas parties for employees (and their associates) of tax-exempt bodies are different to those of income tax paying bodies.

    There is no separate category of fringe benefit for Christmas parties. Where you provide your employees with a Christmas party, it will be a tax-exempt body entertainment fringe benefit, regardless of whether the Christmas party is held on your premises.

    See also:

    Are you a tax-exempt body?

    Your organisation is a tax-exempt body if your organisation's income is either:

    • wholly exempt from income tax (for example, a local government body or a club that earns income from members only), or
    • partially exempt from income tax (for example, a club that earns income from both members and non-members).

    Charities need to be endorsed by us as exempt from income tax. If your charity is not endorsed, it will be unable to access charity tax concessions.

    See also:

      Last modified: 22 Dec 2016QC 18530