As the end of year approaches, many employers celebrate with staff parties, events and gifts to recognise and reward their employees.
If you're planning an end-of-year workplace celebration, consider if the benefits you provide attract fringe benefits tax (FBT).
This will depend on:
- the amount spent on each paid employee or associate (such as partners)
- when and where your event is held
- who attends the event
- the value and type of gifts provided.
There may be certain circumstances when your workplace celebrations may be exempt from FBT. Check for any exemptions and reductions to see if these apply to your not-for-profit (NFP) organisation. You can also explore our common entertainment fringe benefit examples to see how FBT may apply to your situation.
Make sure to keep the right records to stay compliant and avoid unexpected penalties.
Learn more about entertainment-related fringe benefits and your FBT obligations at How to work out FBT on entertainment.
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