FBT and Christmas Celebrations: What Employers Need to Know
- Dec 5, 2025
- 1 min read
As the year draws to a close, the ATO is reminding employers of their Fringe Benefits Tax (FBT) obligations for workplace celebrations, including staff parties, events, and gifts. In some circumstances, these benefits may be exempt from FBT. Examples of exempt benefits include:
Food and drink provided to current employees and consumed on the business premises on a working day
Food and drink provided off the business premises costing less than $300 per person that meets the minor benefit requirements
Infrequent gifts valued at less than $300 per person that qualify as minor benefits
Recreational activities, such as a golf day, costing less than $300 per person that meet the minor benefit rules
Benefits provided to business clients, which are not subject to FBT
The ATO has also announced its end-of-year holiday shutdown period. The closure will run from noon on Wednesday 24 December 2025 and services will reopen at 8am on Friday 2 January 2026. Employers should plan lodgements, payments, and communications around this period to avoid delays.
This article offers a clear and practical overview of Fringe Benefits Tax considerations during Christmas celebrations, helping employers understand how everyday festive activities like staff parties, gifts, and events can have important tax implications. It effectively explains how factors such as where the event is held, who attends, and the cost per person influence whether FBT applies, while also highlighting useful exemptions like minor benefits under specific thresholds and on-premises provisions . The concise breakdown makes what can often feel like a complex topic much easier to navigate, especially for businesses planning end-of-year celebrations responsibly. In the same way that understanding team building techniques in public services requires structured thinking and coordination to ensure smooth collaboration, this post demonstrates how…