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Don't let your festive celebrations lead to an FBT hangover

Planning a staff lunch, end-of-year party, team-building event or a thank you gift for your team?

Published 4 November 2026

While these benefits can boost morale and reward your employees, some can attract fringe benefits tax (FBT). Before you lock in your plans, it's worth checking if you're providing entertainment-related fringe benefits.

Planning ahead before arrangements are finalised and costs incurred can help you make informed decisions about the benefits you provide, understand your FBT obligations and make sure you keep the right records.

What to consider before you celebrate

Knowing what to look for can help you identify whether a fringe benefit is being provided and whether FBT may apply to your circumstances. Consider:

  • where your event is held – such as on your business premises or at an offsite venue
  • when your event is held – whether it takes place during or outside normal working hours
  • the type of attendees – 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 and type of any gifts provided.

The answers to these questions will help you determine whether FBT applies and whether you're eligible for an exemption or concession, such as the minor benefits exemption.

Not sure if FBT applies?

Many employers don't think about FBT implications until after benefits have been provided. Check our common entertainment fringe benefit examples to see if they apply to your situation.

You can also learn more about how to work out FBT on entertainment or seek advice from a registered tax agent.

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