Do I Have To Pay Fringe Benefit Tax (FBT) On Gifts I Give To Staff?

General exemption – There is a $300 exemption per employee per quarter from paying FBT if you provide free (gifts and prizes), subsidised or discounted goods and services. However, if the value of the benefits for an employee goes over $300 for a quarter, the full value of the benefits is subject to FBT – the exemption is not deducted first.

There is also an annual exemption if you make a gift once a year – Annual and income year returns Employers who file annual or income year returns have a yearly exemption of $1,200 for each employee, with the maximum employer exemption for all employees of $22,500 per year.

So as long as you keep the gift under $300 per quarter or $1200 per year there is no FBT payable.