Fringe benefit tax (FBT) can sometimes be confusing for small business owners, especially where different rules apply for different situations. So what happens when a staff member claims their travel fare (eg taxi, Uber, Shebah) to and/or from the work Christmas party? Here’s the lowdown:
Travelling to a party that IS NOT the place of employment
If your office Christmas party is being held at a location that is NOT your work address, then the cost of the taxi is considered to be for the facilitation of entertainment, meaning it’s not a separate benefit from the entertainment itself. What this means for the employer is that they would need to ensure the total entertainment package (including taxi fares) is under $300.00 for the minor benefit rule to apply.
Travelling to a party that IS at the place of employment
If you’ve opted to host your Christmas party at your place of work, then the taxi fare is FBT exempt, if it is a single trip that begins and/or ends at your workplace.
If you need advice about Fringe Benefit Tax (FBT) for your business, contact the Accounting team at Greenhalgh Pickard today on (07) 5444 1022.