If you are a tax-exempt body, the following explanations may help you determine the FBT implications arising from a Christmas party.
Gifts provided to employees at a Christmas party
A Christmas gift or hamper provided to an employee that meets the conditions of the minor benefits exemption rule and is less than $300 will not attract any FBT.
Christmas party held on business premises
The exempt property benefits (property benefits provided on your business premises) would not apply as the tax-exempt body entertainment provisions would apply.
The minor benefits exemption rule is unlikely to apply to any staff Christmas party provided by a tax-exempt body unless very limited circumstances apply.
A tax-exempt organisation decides to run a Christmas morning tea for its sponsors. Employees attend as well. There would be no FBT implications as the minor entertainment benefit provided to the employees is incidental to entertaining the sponsors.
Christmas party held off business premises
The minor benefits exemption rule is unlikely to apply to any staff Christmas party provided by a tax-exempt body unless very limited circumstances apply. The example immediately above will apply in these circumstances.