FBT and Workplace Celebrations

​The ATO is reminding employers of their FBT obligations in relation to end of year celebrations, such 
as staff parties, events, and gifts. 

In some circumstances, workplace celebrations and/or gifts to staff may be exempt from FBT.

Some examples include: 

• food and drink provided to current employees and consumed on the business premises, on a 
• working day
• food and drink to employees or associates (such as partners) off the business premises which cost less than $300 per person and meets the other requirements of a minor benefit
• infrequent gifts to employees with a value of less than $300 per person and meets the other requirements of a minor benefit
• recreational activities (such as a golf day) which cost less than $300 per person and meet the other requirements of a minor benefit
• benefits provided to business clients are not subject to FBT.

How Hansens Can Help and Best Practice Tips

Navigating FBT around end-of-year celebrations doesn’t need to be stressful. At Hansens, we help employers get it right so you can celebrate with your team without unexpected tax headaches.

Some ways we support clients:

• Reviewing your planned events and gifts to determine which are FBT-exempt and which need reporting.
• Structuring celebrations and gifts so they fall under minor benefits or other exemptions.
• Keeping clear records to ensure your FBT reporting is accurate and audit-ready.
• Advising on client gifts versus staff benefits to avoid surprises at year-end.

Best practice tips:

• Plan early – review your end-of-year activities and budgets now.
• Keep all receipts and details of gifts, meals, and events.
• Consider using minor benefit exemptions strategically to minimise FBT exposure.
• When in doubt, check with your tax professional before confirming plans.

With Hansens’ guidance, you can focus on celebrating your team while staying fully compliant.