Christmas parties are a great way to spread cheer and celebrate the achievements of your staff.
When planning a work Christmas party, you should also be considering your tax and Occupational Health & Safety (OH&S) obligations.
Being aware of the tax implications and ways to minimise your obligations may benefit your business when it comes to submitting your taxes.
As Christmas parties can attract fringe benefits tax (FBT), you should consider:
- the benefits of hosting the party at your business premises
- the value of any gifts you choose to give to staff
- whether to invite clients and other associates
- the cost of catering per person.
Typically, you will avoid FBT if you host the Christmas party on your business premises, or keep the cost of the party to below $300 per person.
It’s also important to remember that as an employer, you have a duty of care to your employees at the party whether it’s held onsite or not. To ensure that your employees remain safe, you should identify potential hazards and minimise these as much as possible.
If you are serving alcohol, proper risk management strategies may save your business from costly compensation bills and absent staff in the future.
Find out if your party will attract FBT by contacting the team at South East Access
