This flowchart will help businesses work out the general tax implications of the year-end Christmas party.

christmas1: Minor benefit exemption must be less than $300 per benefit, provided on an irregular and infrequent basis, and satisfy other relevant conditions.
2: Income tax treatment for entertainment expenses determined under tax law.
3: An associate of an employee is widely defined. It normally includes family members.
NOTE. This flowchart does not apply if you use the 50/50 split or 12 week register in calculating FBT for meal entertainment.

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