Celebrating Christmas parties without the tax hangover!

Adrian Rasmussen • November 26, 2015

The lead up to Christmas can be exciting and your end of year celebrations are a chance to thank your employees for a job well done, and get everyone together to have some fun. However, when planning a Christmas party for your staff, you need to be careful that you don’t end up with an unwanted tax hangover.

Christmas parties are a benefit to employees so in the eyes of the tax office they can be considered a ‘Fringe Benefit’. If your Christmas party costs less than $300 per employee, there’s a good chance you will be exempt from Fringe Benefits Tax (FBT). Holding Christmas parties on the business premises on a working day is most tax effective. Drinks and food are exempt from FBT for employees with no dollar limit. While on the other end of the scale if you were to hold your party off premises on a working day before Christmas and provide meals, drinks, and entertainment at a cost of $300 or more per head, a taxable fringe benefit arises for employees and family.

For those businesses providing Christmas gifts remember it’s better to give your staff ‘non-entertainment’ gifts that are less than $300 as the amount is fully tax deductible and you are not required to pay any FBT. This includes things like a Christmas hamper, bottle of wine or gift vouchers. For those more generous employers, if the ‘non-entertainment’ gift for employees is more than $300, it is still tax deductible and GST credit can still be claimed, but FBT is made payable at a rate of 46.5%.

Christmas is a time of giving and we encourage employers to reward employees during the festive season, but we suggest keeping it simple and meaningful. If you’re not sure about the tax implications of your gifts and parties, seek advice from your accountant before your splurge. Remember – be wary while you’re being merry!

 

Disclaimer – Information provided in this article has been sourced from Australian Tax Office and is general in nature. In preparing this information BMO has not taken into account any particular person’s objectives, financial situation or needs. We recommend you obtain financial advice specific to your situation before making any financial decisions or investments.

Adrian Rasmussen retires after decades supporting Regional Queensland

By BMO • June 30, 2026
After an incredible career dedicated to supporting regional businesses, farming families and rural communities, BMO Business Centre Partner Adrian Rasmussen will officially retire from the partnership effective 30 June 2026. For many across the Western Downs and beyond, Adrian has been far more than an accountant or advisor. Over decades in business, he has built trusted relationships grounded in honesty, loyalty and a genuine understanding of regional life and the people who live it. Adrian’s connection to the country and agriculture has always been at the heart of who he is. He has worked alongside generations of farming families and business owners through seasons of growth, challenge and change, becoming a steady and respected presence for clients, colleagues and the wider community alike. Reflecting on his time at BMO, Adrian said the relationships formed throughout his career have been among the most rewarding parts of the journey. “It has been a privilege to work with so many wonderful people over the years; not only clients, but colleagues and communities who have become lifelong friends,” Adrian said. “Regional communities are built on relationships, trust and supporting one another, and I’m incredibly grateful to have been part of that throughout my career.” BMO Business Centre Managing Partners Kelvin Tyler and Michelle McVeigh said Adrian’s contribution to both the business and the region would leave a lasting legacy. “Adrian has played an incredibly important role in shaping BMO into the business it is today,” they said. “His care for clients, commitment to regional communities and calm, practical approach have earned enormous respect across our industry and the communities we serve. While we will certainly miss having him in the office, we are excited for Adrian and his family as they enter this next chapter.” While stepping away from the partnership, Adrian is looking forward to spending more time with family, on the farm and enjoying a well-earned change of pace after many years dedicated to supporting others. Everyone at BMO Business Centre extends their sincere thanks to Adrian for his years of service, friendship and leadership, and wishes Adrian and his family all the very best for the future.

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