{"id":4335,"date":"2026-10-14T19:30:49","date_gmt":"2026-10-14T08:30:49","guid":{"rendered":"https:\/\/wiselinkaccountants.com.au\/christmas-party-staff-gifts-bonus-fbt-payday-super-2026\/"},"modified":"2026-10-14T19:30:49","modified_gmt":"2026-10-14T08:30:49","slug":"christmas-party-staff-gifts-bonus-fbt-payday-super-2026","status":"publish","type":"post","link":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/christmas-party-staff-gifts-bonus-fbt-payday-super-2026\/","title":{"rendered":"Staff Christmas Party, Gifts and Bonuses: FBT and Payday Super Rules for 2026"},"content":{"rendered":"<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"BlogPosting\", \"headline\": \"Staff Christmas Party, Gifts and Bonuses: FBT and Payday Super Rules for 2026\", \"description\": \"A staff Christmas party held on business premises on a working day for current employees has no FBT on food and drink. An off-site party, or one with partners, has no FBT if it costs less than $300 per head and is a minor benefit. Exempt parties are not deductible and carry no GST credits. Gifts under $300 are usually exempt; hampers and wine are not entertainment and generally remain deductible, while event tickets are not deductible. A cash Christmas bonus is wages and is qualifying earnings for super under Payday Super from 1 July 2026, so 12% super is due within 7 business days after the next regular payday. A Lunar New Year dinner on 6 February 2027 falls in the same FBT year and is tested separately under TR 2007\/12.\", \"image\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/10\/christmas-gifts-fbt-hero-2026-10-14.jpeg\", \"datePublished\": \"2026-10-14T09:00:00+10:00\", \"dateModified\": \"2026-10-14T09:00:00+10:00\", \"inLanguage\": \"en-AU\", \"mainEntityOfPage\": {\"@type\": \"WebPage\", \"@id\": \"https:\/\/wiselinkaccountants.com.au\/christmas-party-staff-gifts-bonus-fbt-payday-super-2026\/\"}, \"author\": {\"@type\": \"Person\", \"name\": \"Lily Zhang\", \"jobTitle\": \"Founder & Principal Accountant\", \"hasCredential\": [\"CPA Australia member\", \"Registered Tax Agent\", \"ASIC Registered Agent\", \"NTAA Member\"], \"worksFor\": {\"@type\": \"AccountingService\", \"name\": \"Wiselink Accountants\"}, \"knowsLanguage\": [\"en\", \"zh\"]}, \"publisher\": {\"@type\": \"Organization\", \"name\": \"Wiselink Accountants\", \"logo\": {\"@type\": \"ImageObject\", \"url\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2020\/02\/logo.png\"}}, \"about\": \"Fringe benefits tax on staff Christmas parties, minor benefits exemption $300 threshold, TR 2007\/12, entertainment and non-entertainment gifts, income tax deductibility and GST credits for entertainment, taxi travel exemption, meal entertainment 50:50 split method, FBT rates for the year ending 31 March 2027, Christmas bonus as qualifying earnings under Payday Super, out-of-cycle super payment deadline, Lunar New Year staff dinner and red packets\"}<\/script><\/p>\n<p><!--\n\u9009\u9898\u4f9d\u636e: demand-supply-map \u65b0\u589e s23\uff08\u5458\u5de5\u5723\u8bde\u805a\u9910\/\u793c\u54c1\/\u7ea2\u5305\/\u5e74\u996d\uff09\u3002\u4e24\u6587\u4ef6\u5939 + \u7ad9\u4e0a 186 \u7bc7\u67e5\u91cd\uff1aFBT\u3001Christmas\u3001minor benefit \u96f6\u4e13\u9875\n         \uff08\u4ec5 post 4323 Division 293 \u4e00\u53e5\u987a\u5e26\u63d0\u5230 reportable fringe benefits\uff09\u3002\n\u65f6\u70b9: 2026-10-14\u300212 \u6708\u805a\u9910\u573a\u5730\u73b0\u5728\u5c31\u5728\u8ba2\uff1b2026-07-01 \u8d77 Payday Super\uff0c\u8fd9\u662f\u65b0\u89c4\u4e0b\u7b2c\u4e00\u4e2a\u5723\u8bde\u5b63\uff0c\u73b0\u91d1\u5956\u91d1\u7b2c\u4e00\u6b21\u8981\u5728 7 \u4e2a\u5de5\u4f5c\u65e5\u5185\u914d super\u3002\n     2027 \u519c\u5386\u65b0\u5e74 = 2027-02-06\uff08\u5468\u516d\uff09\uff0c\u4e0e\u5723\u8bde\u540c\u843d\u5728 2026-04-01 \u81f3 2027-03-31 \u8fd9\u4e00\u4e2a FBT \u5e74\u5ea6\u3002\n\u53d7\u4f17: \u58a8\u5c14\u672c\u3001\u5e03\u91cc\u65af\u73ed\u7684\u4e2d\u5c0f\u96c7\u4e3b\uff0c\u5c24\u5176\u662f\u4e00\u5e74\u529e\u4e24\u6b21\u5458\u5de5\u805a\u4f1a\uff08\u5723\u8bde + \u5e74\u996d\uff09\u3001\u4e60\u60ef\u7ed9\u5458\u5de5\u53d1\u7ea2\u5305\u7684\u534e\u4eba\u8001\u677f\u3002\n\u6570\u5b57\u53e3\u5f84: \u5168\u90e8 2026-10-14 \u4e00\u624b\u53d6\u81ea ATO \u9875\u9762\uff08QC \u53f7\u4e0e Last updated \u9010\u6761\u8bb0\u5728 Sources\uff09\u548c TR 2007\/12 \u539f\u6587\u3002\n         \u7b97\u4f8b\u91cc 12 \u540d\u5458\u5de5\u3001$180 \/ $320 \u4eba\u5747\u3001$80 \u793c\u7bee\u3001$500 \u5956\u91d1\u662f\u793a\u610f\u6570\uff08\u975e\u5b9e\u6570\uff0c\u975e\u5ba2\u6237\u6848\u4f8b\uff09\uff1b\u8d39\u7387\u662f ATO 2027 FBT \u5e74\u5ea6\u5b98\u65b9\u503c\uff0c\u91d1\u989d\u662f\u6211\u4eec\u7684\u7b97\u672f\u3002\n\u5dee\u5f02\u5316\uff08SERP \u524d\u6392 Kelly Partners \/ ITP \/ Andersen \/ Latitude \u90fd\u53ea\u8bb2 $300 \u4e0e\u573a\u5730\uff09:\n        \u2460 Payday Super \u4e0b\u5723\u8bde\u5956\u91d1\u662f qualifying earnings\uff08QC 105843 \u8868 10 \u539f\u6587\u5217\u51fa\uff09\uff0csuper \u5230\u671f\u65e5\u6309 out-of-cycle \u89c4\u5219\uff08QC 105846 \u539f\u4f8b\uff1a12\/7 \u53d1\u5956\u91d1 \u2192 12\/21 \u5230\u671f\uff09\uff1b\n        \u2461 \u5e74\u996d\u4e0e\u5723\u8bde\u540c\u4e00 FBT \u5e74\u5ea6\uff0cTR 2007\/12 \u7b2c 42 \u6bb5\uff1a\u4efb\u4f55\u5e74\u5ea6\u805a\u4f1a\u4e0e\u5723\u8bde\u540c\u6837\u5224\u5b9a\uff0c\u4f46\u9891\u7387\u4e0e\u540c\u7c7b\u798f\u5229\u603b\u989d\u8981\u5408\u5e76\u770b\uff1b\n        \u2462 \u7ea2\u5305\uff1aATO \u672a\u70b9\u540d\uff0c\u6b63\u6587\u660e\u786e\u6807\u6ce8\u4e3a\u300c\u6211\u4eec\u7684\u7406\u89e3\u300d\uff1b\n        \u2463 \u7528 50:50 split \u6cd5\u7684\u96c7\u4e3b\u6ca1\u6709 minor benefit \u8c41\u514d\uff08QC 71159\uff09\uff1b\n        \u2464 \u7528 ATO 2027 \u5e74\u5ea6\u8d39\u7387\u7b97 $320 \u4eba\u5747\u7684 FBT \u8d26\u5355\u3002\n\u6267\u4e1a\u8fb9\u754c: \u53ea\u8bb2\u89c4\u5219\u3001\u600e\u4e48\u7b97\u3001\u7559\u4ec0\u4e48\u8bb0\u5f55\uff1b\u4e0d\u5199\u4efb\u4f55\u628a\u5de5\u8d44\u5305\u88c5\u6210\u793c\u54c1\u4e4b\u7c7b\u7684\u5b89\u6392\u5efa\u8bae\u3002\n--><\/p>\n<p>December functions in Melbourne and Brisbane are being booked now. Most small business owners thank their staff in one of three ways: a party, a gift, or cash. Each one is taxed differently, and this year the cash option has changed. Since 1 July 2026, a Christmas bonus attracts super that has to reach the employee&#8217;s fund within 7 business days of the next regular payday.<\/p>\n<p>For many of our clients there is also a second celebration in the same tax year. Lunar New Year falls on Saturday 6 February 2027, and the staff dinner or red packets that go with it sit in the same fringe benefits tax (FBT) year as the Christmas party.<\/p>\n<figure>\n  <img decoding=\"async\" src=\"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/10\/christmas-gifts-fbt-hero-2026-10-14.jpeg\" alt=\"Wrapped gift boxes with red ribbons on a wooden table: FBT and tax rules for staff Christmas gifts and parties, Wiselink Accountants Melbourne and Brisbane\" \/><figcaption>A party, a gift and a cash bonus are three different tax events, even when they are handed out on the same night.<\/figcaption><\/figure>\n<h2>The short answer<\/h2>\n<p>A Christmas party held on your business premises, on a working day, for current employees only, has no FBT on the food and drink. A party held off-site, or one that includes partners, has no FBT if the cost is less than $300 per person and it qualifies as a minor benefit. In both cases the party is not tax deductible and you cannot claim GST credits for it. A gift under $300 per employee is usually exempt from FBT as well. A hamper or a bottle of wine is not entertainment, so it generally stays deductible with GST credits, while tickets to a show or a game are entertainment and are not deductible. Cash is wages: it goes through payroll with tax withheld, and the ATO lists a Christmas bonus as qualifying earnings, so 12% super applies. Clients at the party create no FBT, but their share is not deductible either.<\/p>\n<h2>Party, gift or cash: how each is taxed<\/h2>\n<table>\n<thead>\n<tr>\n<th>What you give<\/th>\n<th>FBT<\/th>\n<th>Income tax deduction<\/th>\n<th>GST credits<\/th>\n<th>Super<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Party on your premises, on a working day, current employees only<\/td>\n<td>None on food and drink<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Party off-site, or with partners, under $300 per head<\/td>\n<td>None if it is a minor benefit<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Party at $300 or more per head<\/td>\n<td>Yes, on the full cost for employees and their partners<\/td>\n<td>Yes, including the FBT paid<\/td>\n<td>Yes<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Gift under $300 that is not entertainment, such as a hamper or a bottle of wine<\/td>\n<td>None if it is a minor benefit<\/td>\n<td>Generally yes<\/td>\n<td>Generally yes<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Gift under $300 that is entertainment, such as movie, theatre or sports tickets<\/td>\n<td>None if it is a minor benefit<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Cash bonus or red packet from the business<\/td>\n<td>Not a fringe benefit<\/td>\n<td>Yes, as wages<\/td>\n<td>Not applicable<\/td>\n<td>Yes, 12%<\/td>\n<\/tr>\n<tr>\n<td>Clients who attend the party<\/td>\n<td>None<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>Not applicable<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Source: ATO, <em>Common entertainment scenarios for business<\/em> (QC 71139), <em>Exempt entertainment benefits for business<\/em> (QC 71138), <em>What payments are qualifying earnings<\/em> (QC 105843), and Taxation Ruling TR 2007\/12. The deduction and GST treatment of non-entertainment gifts follows from TR 2007\/12, paragraph 53, which says a hamper of food and a bottle of wine are not entertainment.<\/p>\n<h2>The $300 test, read carefully<\/h2>\n<p>The minor benefits exemption has two parts. The benefit must have a notional taxable value of less than $300, and it must be unreasonable to treat it as a fringe benefit (ATO, QC 71159). Four points catch people out.<\/p>\n<ul>\n<li><strong>$300 is a hard limit.<\/strong> At $299 per head the party can be exempt. At $300 or more the exemption is lost entirely and FBT applies to the whole cost per head.<\/li>\n<li><strong>Each benefit is tested on its own.<\/strong> Where an employee receives separate but connected benefits, such as a meal and a taxi home, the $300 threshold applies to each one separately. TR 2007\/12, Example 3, applies the same logic to a Christmas gift handed out at a Christmas party: the gift and the party are two benefits.<\/li>\n<li><strong>Partners are counted separately.<\/strong> When you work out whether the employee&#8217;s benefit is under $300, benefits provided to associates such as a partner are not added in.<\/li>\n<li><strong>Frequency matters.<\/strong> The ATO weighs how often and how regularly the benefit is provided, and the total value of identical or similar benefits. Its own example is an employer who takes two staff to lunch every Friday at about $45 each. Each lunch is cheap, but because it is weekly the ATO says it is not an exempt minor benefit.<\/li>\n<\/ul>\n<h2>Christmas, then Lunar New Year: two celebrations in one FBT year<\/h2>\n<p>The FBT year runs from 1 April to 31 March (ATO, QC 18846). The 2026 Christmas party and a Lunar New Year dinner in February 2027 both fall in the year ending 31 March 2027.<\/p>\n<p>TR 2007\/12 deals with this directly. After its Christmas party example, paragraph 42 says the same outcome applies to any annual party or celebration, and gives an end of financial year party as an example. A Lunar New Year dinner for staff is tested in the same way as a Christmas party: it is its own benefit, and it needs to come in under $300 per head to be exempt as a minor benefit.<\/p>\n<p>The frequency test is where the two events meet. Two annual celebrations look very different from a weekly lunch. Add a Melbourne Cup lunch in November and an end of financial year dinner in June, for the same staff, and the total of similar benefits across the year starts to carry weight. The ATO does not publish a maximum number of events. What protects you is a record of each one.<\/p>\n<p>One practical detail for 2027: Lunar New Year falls on a Saturday. If your office is closed on weekends, a dinner held there that day is not on a working day, so the on-premises exemption for employees does not apply. The event would then rely on the $300 minor benefit test, the same as a restaurant booking.<\/p>\n<h2>Gifts: a hamper and theatre tickets are treated differently<\/h2>\n<p>A Christmas gift worth less than $300 per person is exempt from FBT if it would be unreasonable to treat it as a fringe benefit (QC 71139). TR 2007\/12, Example 1, describes an employer who gives each employee a bottle of whisky, perfume or a store voucher at Christmas, always under $300, and concludes the gift is exempt.<\/p>\n<p>The type of gift decides what happens to the deduction. The ATO&#8217;s list of recreation that counts as entertainment includes theatre and movie tickets (QC 71137). An exempt entertainment gift is not deductible and carries no GST credit. A hamper of food or a bottle of wine is not entertainment (TR 2007\/12, paragraph 53), so the cost generally remains deductible and the GST credit can be claimed. Gift cards follow the same FBT test; the GST position on a gift card depends on the type of card, so check it before claiming a credit.<\/p>\n<h2>Cash bonuses and red packets: the Payday Super change<\/h2>\n<p>The ATO&#8217;s own list of ways to reduce FBT includes giving employees a cash bonus instead of a benefit, because the employee then pays income tax on the bonus instead of you paying FBT (QC 71138). Cash is wages. It goes through your payroll software, tax is withheld, and it is reported through Single Touch Payroll.<\/p>\n<p>What changed this year is super. From 1 July 2026, super guarantee is 12% of an employee&#8217;s qualifying earnings (QC 105838), and the ATO&#8217;s table of qualifying earnings lists &#8220;Christmas bonus&#8221; as both ordinary time earnings and qualifying earnings (QC 105843). The ATO does not mention red packets by name. In our view, a cash red packet the business gives staff because they work there is the same kind of payment as a Christmas bonus, and should be run through payroll the same way.<\/p>\n<p>The deadline is the part most likely to be missed over the holidays. Super must be received by the fund within 7 business days after you pay the employee. A bonus paid outside the normal pay cycle is an out-of-cycle payment, and its super is due within 7 business days after the employee&#8217;s next regular payday. The ATO&#8217;s own example: a $1,000 Christmas bonus paid on 7 December 2026 to an employee who is paid weekly, with the next regular pay on 10 December, has its super due on 21 December 2026 (QC 105846). Public holidays that apply across a whole state or territory are not business days, and a clearing house needs time to process, so the safest course is to pay the bonus super with the next pay run.<\/p>\n<p>Late super is more expensive than it used to be. Under Payday Super the ATO assesses the super guarantee charge itself, with interest compounding daily at the general interest charge rate and an administrative uplift amount on top, and penalties of 25% or 50% of the unpaid charge (QC 105838).<\/p>\n<h2>Worked example: a Melbourne business with 12 staff<\/h2>\n<p>The business below is illustrative, not a client. The FBT rate and gross-up rate are the ATO&#8217;s figures for the FBT year ending 31 March 2027 (QC 18846), and the dollar amounts are our arithmetic. Twelve employees and their partners attend a dinner at a restaurant, so 24 people.<\/p>\n<table>\n<thead>\n<tr>\n<th><\/th>\n<th>Option A: $180 per head<\/th>\n<th>Option B: $320 per head<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cost of the dinner (GST inclusive)<\/td>\n<td>$4,320<\/td>\n<td>$7,680<\/td>\n<\/tr>\n<tr>\n<td>Minor benefit exemption<\/td>\n<td>Yes, under $300 per head<\/td>\n<td>No, $300 or more per head<\/td>\n<\/tr>\n<tr>\n<td>FBT payable<\/td>\n<td>$0<\/td>\n<td>About $7,509 ($320 \u00d7 2.0802 \u00d7 47% = $312.86 per person, \u00d7 24)<\/td>\n<\/tr>\n<tr>\n<td>Deduction and GST credits<\/td>\n<td>None<\/td>\n<td>Dinner and FBT deductible; GST credits of about $698<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Option B costs about $15,189 once the FBT is added, against $4,320 for Option A. For a company taxed at the 25% base rate entity rate, the GST credits and deductions bring Option B down to about $10,868, which is still about two and a half times Option A. On top of the dinner, an $80 hamper for each of the 12 employees costs $960, is exempt from FBT, and remains deductible with about $87 of GST credits. A $500 cash bonus for each employee is $6,000 of wages, plus $720 of super that has to reach their funds on the Payday Super timetable.<\/p>\n<h2>Using the 50:50 split method? Check before you budget<\/h2>\n<p>Some businesses value all their meal entertainment under the 50:50 split method, where the taxable value is 50% of everything spent on meal entertainment for everyone across the FBT year, including food on your premises and client meals (QC 71144). The minor benefits exemption does not apply to meal entertainment valued this way (QC 71159). If that is the method your FBT return used, the $300 per head planning above does not work the same way. Check last year&#8217;s FBT working papers before choosing a venue.<\/p>\n<h2>Before the party: a short checklist<\/h2>\n<ol>\n<li><strong>Choose the venue with the rules in mind.<\/strong> Your premises, on a working day, for current employees only, is the simplest FBT position for food and drink.<\/li>\n<li><strong>Work out the cost per head including GST.<\/strong> Keep it under $300 if you are relying on the minor benefit exemption.<\/li>\n<li><strong>Plan the ride home.<\/strong> Taxi travel that starts or ends at the workplace is exempt. Travel from an off-site venue to home is not covered by that exemption and can only be exempt as a minor benefit (QC 71139).<\/li>\n<li><strong>Pick gifts on purpose.<\/strong> Hampers and wine generally keep the deduction. Event tickets do not.<\/li>\n<li><strong>Put cash through payroll.<\/strong> Withhold tax, report it through Single Touch Payroll, and pay the 12% super with the next regular pay run.<\/li>\n<li><strong>Keep a register for each event.<\/strong> The ATO lists the records it expects for entertainment: the date, whether each person was an employee, an associate or someone else, the cost, the type of entertainment and where it was held (QC 71144).<\/li>\n<li><strong>Count clients separately.<\/strong> Their share has no FBT, no deduction and no GST credit.<\/li>\n<\/ol>\n<blockquote><p>\ud83d\udca1 In one line: keep each party and each gift under $300 per head, choose a hamper over tickets if you want the deduction, and treat a cash bonus or red packet as wages with 12% super due within 7 business days of the next payday.<\/p><\/blockquote>\n<p>Related reading: <a href=\"https:\/\/wiselinkaccountants.com.au\/payday-super-july-2026-changeover-employers-melbourne-brisbane\/\">Payday Super from July 2026 for employers<\/a>, <a href=\"https:\/\/wiselinkaccountants.com.au\/new-company-first-year-tax-compliance-calendar-australia\/\">the first-year compliance calendar for a new company<\/a>, and <a href=\"https:\/\/wiselinkaccountants.com.au\/tax-deductions-commonly-missed-2026-australia\/\">tax deductions people commonly miss<\/a>.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>Is a staff Christmas party tax deductible in Australia?<\/h3>\n<p>Usually not, if it is exempt from FBT. When the party is held on your premises on a working day for current employees, or costs less than $300 per head and qualifies as a minor benefit, there is no FBT, and the ATO says you cannot claim an income tax deduction or GST credits for it. If the party is subject to FBT, for example because it costs $300 or more per head, the cost and the FBT paid are deductible and GST credits can be claimed. Source: ATO, Common entertainment scenarios for business, QC 71139, retrieved 14 October 2026.<\/p>\n<h3>Do partners at the party change the FBT position?<\/h3>\n<p>They can. The exemption for food and drink on your premises on a working day covers current employees only, not their partners. Food and drink for partners may still be exempt as a minor benefit if it costs less than $300 per head and it would be unreasonable to treat it as a fringe benefit. When you test the employee&#8217;s own benefit against $300, the partner&#8217;s share is not added in. Source: ATO, QC 71138 and QC 71159, retrieved 14 October 2026.<\/p>\n<h3>Can we give staff a Christmas gift and hold a party for them too?<\/h3>\n<p>Yes. TR 2007\/12, Example 3, looks at an employer that gives each employee a gift worth less than $300 at a Christmas party that also costs less than $300 per employee. The gift and the party are separate benefits, each is tested against the $300 threshold on its own, and both were exempt on those facts. A gift such as a hamper or a bottle of wine is not entertainment, so it generally stays deductible. Source: ATO, Taxation Ruling TR 2007\/12, paragraphs 43 to 53, retrieved 14 October 2026.<\/p>\n<h3>Do we pay super on a Christmas bonus or a Lunar New Year red packet?<\/h3>\n<p>For a Christmas bonus, yes. The ATO&#8217;s table of qualifying earnings lists a Christmas bonus as qualifying earnings, so 12% super applies from 1 July 2026. If the bonus is paid outside the normal pay cycle, the super must reach the fund within 7 business days after the employee&#8217;s next regular payday. The ATO does not name red packets; in our view a cash red packet the business gives staff should be treated the same way as a bonus. Source: ATO, QC 105843 and QC 105846, retrieved 14 October 2026.<\/p>\n<h3>We also host a Lunar New Year dinner. Does it share the $300 with Christmas?<\/h3>\n<p>No, each event is its own benefit and each is tested against $300 per head. Both fall in the FBT year ending 31 March 2027. TR 2007\/12, paragraph 42, says the treatment of a Christmas party applies to any annual party or celebration. The ATO also weighs how often similar benefits are provided and their total value across the year, so keep a record of each event: date, who attended, total cost and cost per head. Source: ATO, TR 2007\/12 and QC 71159, retrieved 14 October 2026.<\/p>\n<h2>Talk it through<\/h2>\n<p>Send us your headcount, the venue and cost per head you have in mind, whether partners or clients are invited, what gifts you plan to give, any cash bonuses or red packets, and which FBT valuation method your last FBT return used. We will tell you which events are exempt, what is deductible, and when the super on any bonus is due.<\/p>\n<p><strong><a href=\"\/free-call\/\">Book a 20 minute call<\/a><\/strong>, or phone us: Melbourne <a href=\"tel:+61396000803\">03 9600 0803<\/a> | Brisbane <a href=\"tel:+61731888081\">07 3188 8081<\/a>.<\/p>\n<p>A Christmas bonus touches payroll, Single Touch Payroll reporting, super and FBT at the same time. At Wiselink, payroll, STP, super payments, BAS and the FBT return are handled in one practice, split by function, with senior review on work that carries risk, so the bonus, its super and the year&#8217;s entertainment register line up when the FBT return is prepared after 31 March. Our <a href=\"https:\/\/wiselinkaccountants.com.au\/bookkeeping-and-payroll\/\">bookkeeping and payroll services<\/a> page lists the rest.<\/p>\n<p>Credentials: CPA, Registered Tax Agent, ASIC Registered Agent, NTAA member, Xero, MYOB and QuickBooks partner, in practice since 2013. Our registration can be checked on the <a href=\"https:\/\/www.tpb.gov.au\/public-register\">TPB public register<\/a>. We work in English and Mandarin.<\/p>\n<p>Melbourne Camberwell (1381 Toorak Rd, Camberwell VIC 3124) \u00b7 <a href=\"https:\/\/wiselinkaccountants.com.au\/brisbane-accountants\/\">Brisbane Eight Mile Plains<\/a> (3 Clunies Ross Court, Eight Mile Plains QLD 4113)<\/p>\n<h2>Sources<\/h2>\n<ul>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/hiring-and-paying-your-workers\/fringe-benefits-tax\/types-of-fringe-benefits\/entertainment-related-fringe-benefits\/common-entertainment-scenarios-for-business\"><em>Common entertainment scenarios for business<\/em><\/a> (QC 71139), last updated 12 January 2023.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/hiring-and-paying-your-workers\/fringe-benefits-tax\/exemptions-concessions-and-other-ways-to-reduce-fbt\/minor-benefits-exemption\"><em>Minor benefits exemption<\/em><\/a> (QC 71159), last updated 12 January 2023.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/hiring-and-paying-your-workers\/fringe-benefits-tax\/types-of-fringe-benefits\/entertainment-related-fringe-benefits\/exempt-entertainment-benefits-for-business\"><em>Exempt entertainment benefits for business<\/em><\/a> (QC 71138), last updated 12 January 2023.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/hiring-and-paying-your-workers\/fringe-benefits-tax\/types-of-fringe-benefits\/entertainment-related-fringe-benefits\/when-is-food-drink-and-recreation-considered-entertainment\"><em>When is food, drink and recreation considered entertainment?<\/em><\/a> (QC 71137), last updated 12 January 2023.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/hiring-and-paying-your-workers\/fringe-benefits-tax\/types-of-fringe-benefits\/entertainment-related-fringe-benefits\/calculating-the-taxable-value-of-entertainment-related-benefits\"><em>Calculating the taxable value of entertainment-related benefits<\/em><\/a> (QC 71144), last updated 6 March 2025.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/tax-rates-and-codes\/fringe-benefits-tax-rates-and-thresholds\"><em>Fringe benefits tax: rates and thresholds<\/em><\/a> (QC 18846), last updated 20 May 2026.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/law\/view\/document?docid=TXR\/TR200712\/NAT\/ATO\/00001\">Taxation Ruling TR 2007\/12 <em>Fringe benefits tax: minor benefits<\/em><\/a>.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/super-for-employers\/payday-super\/about-payday-super\"><em>About Payday Super<\/em><\/a> (QC 105838), last updated 10 August 2026.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/super-for-employers\/paying-super-on-payday\/what-payments-are-qualifying-earnings\"><em>What payments are qualifying earnings<\/em><\/a> (QC 105843), last updated 2 September 2026.<\/li>\n<li>ATO, <a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/super-for-employers\/paying-super-on-payday\/payment-deadlines-for-payday-super\"><em>Payment deadlines for Payday Super<\/em><\/a> (QC 105846), last updated 29 September 2026.<\/li>\n<\/ul>\n<p>All sources retrieved 14 October 2026. The business in the worked example is illustrative and does not describe a client; the FBT rate and gross-up rate are the ATO&#8217;s published figures, and the dollar amounts are our arithmetic. This article is general information and does not take your circumstances into account. Liability limited by a scheme approved under Professional Standards Legislation.<\/p>\n<p>Reviewed by Lily Zhang, CPA and registered tax agent, founder of Wiselink Accountants. Wiselink has worked with small businesses and individual taxpayers in Melbourne and Brisbane, in English and Chinese, since 2013.<\/p>\n<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"Is a staff Christmas party tax deductible in Australia?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Usually not, if it is exempt from FBT. When the party is held on your premises on a working day for current employees, or costs less than $300 per head and qualifies as a minor benefit, there is no FBT, and the ATO says you cannot claim an income tax deduction or GST credits for it. If the party is subject to FBT, for example because it costs $300 or more per head, the cost and the FBT paid are deductible and GST credits can be claimed. Source: ATO, Common entertainment scenarios for business, QC 71139, retrieved 14 October 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Do partners at the party change the FBT position?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"They can. The exemption for food and drink on your premises on a working day covers current employees only, not their partners. Food and drink for partners may still be exempt as a minor benefit if it costs less than $300 per head and it would be unreasonable to treat it as a fringe benefit. When you test the employee's own benefit against $300, the partner's share is not added in. Source: ATO, QC 71138 and QC 71159, retrieved 14 October 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Can we give staff a Christmas gift and hold a party for them too?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes. TR 2007\/12, Example 3, looks at an employer that gives each employee a gift worth less than $300 at a Christmas party that also costs less than $300 per employee. The gift and the party are separate benefits, each is tested against the $300 threshold on its own, and both were exempt on those facts. A gift such as a hamper or a bottle of wine is not entertainment, so it generally stays deductible. Source: ATO, Taxation Ruling TR 2007\/12, paragraphs 43 to 53, retrieved 14 October 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Do we pay super on a Christmas bonus or a Lunar New Year red packet?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"For a Christmas bonus, yes. The ATO's table of qualifying earnings lists a Christmas bonus as qualifying earnings, so 12% super applies from 1 July 2026. If the bonus is paid outside the normal pay cycle, the super must reach the fund within 7 business days after the employee's next regular payday. The ATO does not name red packets; in our view a cash red packet the business gives staff should be treated the same way as a bonus. Source: ATO, QC 105843 and QC 105846, retrieved 14 October 2026.\"}}, {\"@type\": \"Question\", \"name\": \"We also host a Lunar New Year dinner. Does it share the $300 with Christmas?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"No, each event is its own benefit and each is tested against $300 per head. Both fall in the FBT year ending 31 March 2027. TR 2007\/12, paragraph 42, says the treatment of a Christmas party applies to any annual party or celebration. The ATO also weighs how often similar benefits are provided and their total value across the year, so keep a record of each event: date, who attended, total cost and cost per head. Source: ATO, TR 2007\/12 and QC 71159, retrieved 14 October 2026.\"}}]}<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Party, gift or cash bonus: each is taxed differently. The $300 minor benefit test, why a hamper stays deductible but tickets don&#8217;t, and the 12% super now due on a Christmas bonus under Payday Super.<\/p>\n","protected":false},"author":5,"featured_media":4334,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,17,61,18],"tags":[],"class_list":["post-4335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-topics","category-business-solutions","category-english-post","category-business"],"_links":{"self":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/comments?post=4335"}],"version-history":[{"count":0,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media\/4334"}],"wp:attachment":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media?parent=4335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/categories?post=4335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/tags?post=4335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}