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FBT Implications of Christmas Parties

As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

• Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
• Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
• Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

Upcoming Key Dates for November 2021

Here are the upcoming key dates for the month of November:

29 Nov 2021

• September quarter SG charge statement due

Change in Super Rules from 1 November for Your New Employees

There’s a change that involves an extra step to comply with ‘choice of fund’ rules when a new employee starts working for you. Currently, if new hires don’t choose their own Super fund, the employer can pay Super contributions for them to your default fund.

Starting 1 November, employers will need to request their ‘stapled super fund’ details from the ATO. A stapled super fund is an existing account which is linked to an employee, and this change in rules aim to minimise the number of additional Super accounts opened each time an individual starts a new job.

You can use online services for business to request for your new hires’ stapled super fund details. If you need help with your tax and super, get in touch with us!

Changes for Directors starting in November: Identification Number Needed

All directors of a company will need a director identification number (director ID) from November.

The director identification number is a unique identifier that allows shareholders, creditors, employees, and consumers to know certain details about the directors of a company. All directors are required by law to verify their identity with the Australian Business Registry Services before receiving a director ID.

All directors need to apply for their own ID so while we can’t apply for this on your behalf, we can help you if you have any questions.

You can also follow the steps for application here.

 

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.