Getting together remotely this Christmas?

Throwing a remote party for your staff this year? We can tell you what claim when you give gifts and provide food and entertainment at a party. Tax rules still apply to remote parties! Start planning now to celebrate the year.

By this time of year, we would usually have our venues booked and menus sorted for the end of year staff gathering! But this year many businesses are having to gather remotely instead.

If you haven’t already got a plan or organised a date for your staff, start planning now before everybody’s calendars fill up.

Get Creative
The office party held online can be as fun and creative as you like! Just because people can’t gather together, doesn’t mean the business gets to skimp on effort and engagement with staff.

• Send an inventive invitation to the event.
• Set a theme – and ask people to get creative with their décor, backgrounds and costumes.
• If you have creatives in your team, get them to have some fun designing virtual backgrounds and animated gifs for staff to use on the day.
• Slideshows, videos, music playlists, games, speeches, talent shows…
• Consider having an outside MC to host the event.
• Showcase the skills and achievements of your staff.
• Send packages to everyone and have them open their gifts during the party. Or organise secret santa exchanges for the day.
• Deliver food and beverage hampers for the party so staff can relax and enjoy a party atmosphere with some special catering.

Staff Gifts – What Can You Claim?
Non-entertainment type gifts such as hampers, wine or gift vouchers that cost less than $300 (including GST) are generally tax deductible with no fringe benefits tax implication. You can claim the GST and tax deduction.

Entertainment gifts include things like tickets to theatre or sporting events, travel and club memberships. If these items cost less than $300 then no fringe benefits tax applies, but you cannot claim the GST or tax deduction on these expenses. Entertainment is not usually a deductible business expense. Check with us if you’re not sure!

Enjoy the Celebration
Parties are usually only tax deductible if fringe benefits tax applies.

There are many rules around tax deductibility of parties and gifts – talk to us before you finalise your event so you know how much it will cost and which expenses will be deductible. Then you can relax with your staff and celebrate the year!