Tax News – Christmas parties health & safety & FBT Implications

If you’re thinking of holding a staff Christmas party this year make sure you consider health and safety regulations.  

While your staff may be ‘off the clock’, you’ll probably still be responsible for their health and safety. Here’s some suggestions to help your workplace celebrate safely:

  • Send a friendly email to staff before the party reminding them that while the party is a time to relax, it’s still a work function. The email should also outline the rules, and remind staff to be careful if they choose to drink alcohol.
  • If you’re serving alcohol at the party, make sure it’s served responsibly and that there’s enough food and non-alcoholic drinks available too.
  • Help your staff get home safely after the event. You could organise a bus, pre-order some taxis, or arrange some designated drivers.

For more information on your Workplace Health and Safety obligations, click HERE.

 

When planning your Christmas party, it’s also important to consider Fringe Benefits Tax (FBT) implications.

Generally, you won’t have to pay FBT if you host the Christmas party on your business premises, or keep the cost of the party to below $300 per person.

Some Christmas parties can attract FBT, so it’s important you 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.

Click HERE to read the Australian Taxation Offices’s Fringe Benefits Tax & Christmas parties guide to find out if your party will attract FBT.

 

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