The Australian Taxation Office (ATO) has reminded employers to consider fringe benefits tax (FBT) when organising staff parties, events, recreational activities or gifts. Early planning can help businesses identify tax obligations and avoid unexpected liabilities.
The Australian Taxation Office (ATO) has advised on 11 November 2026 that employers should review the tax implications before arranging staff celebrations or providing gifts. Several factors can affect the FBT treatment, including the event location, timing, cost per person and attendees.
Employers should also consider whether employees’ family members, contractors, business clients or customers will attend. The value of food, drinks, entertainment and other benefits must also be assessed.
The ATO recommends assessing FBT obligations before events take place or benefits are provided. This allows employers to identify potential liabilities, maintain proper records and determine whether exemptions or concessions apply.
The minor benefits exemption may be relevant in certain circumstances. Employers can also consult the ATO’s guidance on common entertainment fringe benefits and how to calculate FBT on entertainment.
