Where a Christmas gift is provided to an employee at a Christmas function that is also provided by the employer, whether the gift is an exempt benefit needs to be considered separately from the function.
Hampers or presents given to an employee at a Christmas function are not considered to be the provision of entertainment. As these are not treated as tax-exempt body entertainment benefits, you can consider the minor benefit exemption. For example, a hamper given to each of your employees at a Christmas function - that meets the conditions of the minor benefits exemption rule and is less than $300 - will not attract any FBT.
For the FBT year beginning 1 April 2006 and prior years, the minor benefits threshold was less than $100 rather than less than $300.
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