If you're planning any lunches, events, functions, activities or gifts for your employees, consider any FBT implications before making the arrangements and incurring costs.
For large businesses, these activities often occur across multiple teams, locations and business units. Assessing whether FBT may apply early in the planning process can help you manage potential liabilities and support effective planning, budgeting and reporting.
What to consider
If you're planning celebrations, events or gifts for your staff, consider:
- where the event will be held, such as on your business premises or at an offsite venue
- when the event will be held, whether it takes place during or outside normal working hours
- who will attend the event, including employees and their associates (such as partners or family members), contractors, business clients and customers, or a combination of these groups
- the cost per person, including food, drinks, entertainment and other associated expenses
- the value of any gifts or recreational activities provided.
These factors can affect the FBT treatment of benefits provided to employees and influence how those benefits are valued and reported.
Plan ahead
Employers often overlook FBT considerations until after an event has been held or benefits have already been provided to staff. Reviewing the FBT implications before finalising arrangements can help you:
- identify potential FBT obligations
- meet your record-keeping requirements
- determine whether exemptions or concessions, such as the minor benefits exemption, may apply
- avoid unexpected FBT outcomes.
To find out more:
- review our common entertainment fringe benefit examples to see if they apply to your situation
- learn how to work out FBT on entertainment.
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