As the end of the year approaches, many businesses have begun to focus on planning Christmas parties for their teams. However, it’s important to remember that there are often fringe benefit tax (FBT) implications associated with providing these benefits
The ATO modified their rules regarding payment of Fringe Benefits Tax (FBT) for electric cars for this financial year. As of 1 July 2022, employers are now exempt from paying FBT benefits provided for electric cars.
The costs associated with Christmas parties are exempt from FBT if it occurs on a working day, on the business premises, and consumed by current employees. The property benefit is not available for associates (spouses, friends, children).