Gifts, bonuses, parties, and more: here\u2019s a brief breakdown of what you can and can\u2019t claim this festive season.<\/p>\n
Employee gifts<\/strong><\/p>\n Gifts that are not subject to the entertainment tax rules (vouchers, hampers, flowers) are fully deductible and exempt from Fringe Benefit Tax (FBT) if they cost less than $300 per employee per quarter, and the total for all staff stays below $22,500 a year.<\/p>\n However, gifts that do fall under the entertainment tax rules, like food hampers or wine, or taking your team to a show or event, are 50% deductible, and not liable for FBT.<\/p>\n Cash bonuses<\/strong><\/p>\n Bonuses are classed as income, so PAYE and other payroll taxes apply. These \u201clump sum\u201d payments are taxed at a flat rate based on your employee\u2019s income bracket.<\/p>\n