--- title: Gifts to staff – are they tax deductable or subject to FBT? description: "Christmas is a time where employers like to give gifts to their employees, in the spirit of the season. Along with this they also need to know -\n• Are these tax deductable expenses and -\n• are these subject to Fringe Benefit Tax?" image: https://blog.fortunaadvisors.com.au/hubfs/images%20(1).jpeg --- - [![phone-icon](https://blog.fortunaadvisors.com.au/hs-fs/hubfs/Fortunaadvisors_October2019/Images/phone-icon.png?width=25&height=25&name=phone-icon.png) (08) 9240 4211](tel:%200892404211) - - - [![Fortuna Advisory Group](https://blog.fortunaadvisors.com.au/hs-fs/hubfs/Fortunaadvisors_October2019/Images/logo-advisory-group.png?width=236&height=48&name=logo-advisory-group.png "Fortuna Advisory Group")](http://www.fortunaadvisors.com.au/) - [Home](https://www.fortunaadvisors.com.au/) - Services - [Tax & Business Advisory](https://www.fortunaadvisors.com.au/tax-business-advisory/) - [Tax and Compliance Services](https://www.fortunaadvisors.com.au/tax-business-advisory/tax-and-compliance-services-2/) - [Bookkeeping Services](https://www.fortunaadvisors.com.au/tax-business-advisory/bookkeeping-services/) - [SMSF](https://www.fortunaadvisors.com.au/tax-business-advisory/smsf/) - [Business Planning](https://www.fortunaadvisors.com.au/tax-business-advisory/business-planning/) - [Buy/Sell a Business](https://www.fortunaadvisors.com.au/tax-business-advisory/buying-selling-business/) - [CFO & Company Secretary](https://www.fortunaadvisors.com.au/tax-business-advisory/cfo-company-secretary/) - [Estate Planning](https://www.fortunaadvisors.com.au/tax-business-advisory/estate-planning/) - [Foreign Business Planning](https://www.fortunaadvisors.com.au/tax-business-advisory/foreign-business-planning-2/) - [Management Accounting & Reporting](https://www.fortunaadvisors.com.au/tax-business-advisory/management-accounting-and-reporting/) - [Strategic Business Development](https://www.fortunaadvisors.com.au/tax-business-advisory/strategic-business-development-2/) - [Succession Planning](https://www.fortunaadvisors.com.au/tax-business-advisory/succession-planning/) - [Brokerage Services](https://www.fortunaadvisors.com.au/brokerage-services/) - [Business Finance](https://www.fortunaadvisors.com.au/brokerage-services/business-finance/) - [Commercial Property Loans](https://www.fortunaadvisors.com.au/brokerage-services/commercial-property-loans/) - [Equipment Finance](https://www.fortunaadvisors.com.au/brokerage-services/equipment-finance/) - [Home Loans](https://www.fortunaadvisors.com.au/brokerage-services/home-loans/) - [Motor Vehicle Finance](https://www.fortunaadvisors.com.au/brokerage-services/motor-vehicle-finance/) - [Financial Planning](https://www.fortunaadvisors.com.au/wealth-management/) - [Budgeting & Cashflow](https://www.fortunaadvisors.com.au/wealth-management/budgeting-cashflow/) - [Insurance](https://www.fortunaadvisors.com.au/wealth-management/insurance/) - [Investment Advice](https://www.fortunaadvisors.com.au/wealth-management/investment-advice/) - [Retirement Planning](https://www.fortunaadvisors.com.au/wealth-management/retirement-planning/) - [Strategic Business Planning](https://www.fortunaadvisors.com.au/wealth-management/strategic-business-planning/) - Legal - [Business Law](https://www.fortunalegal.com.au/business-law/) - [Wills & Estate Planning/](https://www.fortunalegal.com.au/wills-estate-planning/) - [Self-Managed Super](https://www.fortunalegal.com.au/superannuation/) - [Property Law](https://www.fortunalegal.com.au/property/) - [Settlements](https://www.fortunalegal.com.au/settlements/) - [Litigation (Court Cases)](https://www.fortunalegal.com.au/litigation-court-cases/) - About - [About Us](https://www.fortunaadvisors.com.au/about-us/) - [Our MD and Team](https://www.fortunaadvisors.com.au/about-us/our-md-and-team/) - [Careers](https://www.fortunaadvisors.com.au/about-us/careers/) - [What Our Clients Say](https://www.fortunaadvisors.com.au/testimonials/) - Community - [Resources](https://www.fortunaadvisors.com.au/resources/) - [Newsletter](https://www.fortunaadvisors.com.au/newsletter/) - [Blogs](https://blog.fortunaadvisors.com.au/) - [Make a Difference](https://fortunafoundation.org.au/) - [Contact](https://www.fortunaadvisors.com.au/contact-us/) # Gifts to staff – are they tax deductable or subject to FBT? by [Fortuna Advisory Team](https://blog.fortunaadvisors.com.au/author/fortuna-advisory-team) | Dec 15, 2019 | [Holiday](https://blog.fortunaadvisors.com.au/tag/holiday), [Deductible Expenses](https://blog.fortunaadvisors.com.au/tag/deductible-expenses), [Expense](https://blog.fortunaadvisors.com.au/tag/expense), [Tax](https://blog.fortunaadvisors.com.au/tag/tax), [Accounting](https://blog.fortunaadvisors.com.au/tag/accounting) ![images (1)](https://blog.fortunaadvisors.com.au/hubfs/images%20(1).jpeg) Christmas is a time where employers like to give gifts to their employees, in the spirit of the season. Along with this they also need to know - - Are these tax deductable expenses and - - are these subject to Fringe Benefit Tax? ### **Tax Deductibility:** Gifts can be categorised as Entertainment and Non-Entertainment. Entertainment gifts include gifts such as theatre or movie tickets, sporting events, accommodation for holidays, flights, membership to a club or any similar items. These are not deductible for tax purposes. No GST is also claimable on such expenses. Non-entertainment gifts are deductible for tax purposes. GST can also be claimed. Non-entertainment gifts may include gifts such as a Christmas hamper, bottles of wine or spirits, gift vouchers, flowers or other similar items. It is therefore suggested that you give non-entertainment gifts to staff as they are beneficial from a tax perspective.   ### **Fringe Benefit Tax:** The provision of a gift to an employee at Christmas time may be a *minor benefit* where the value of the gift is less than $300. These benefits are not subject to FBT. Where a Christmas gift is provided to an employee at a Christmas party that is also provided by the employer, the benefits are associated benefits, but each benefit needs to be considered separately to determine if they are less than $300 (including GST) in value. If both the Christmas party and the gift are less than $300 (including GST) and the other conditions of a *minor benefit* are met, they will both be exempt benefits. Minor benefit conditions: - Gifts are provided to staff or their associates (for example a spouse/family members), - Gifts are provided on an “infrequent” or “irregular” basis, and - the gift is not considered a reward for services. 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