Christmas Parties & Gifts December 2025 – Camberwell Accountants

Year-end (and other) staff parties

• Editor: With the well earned December/January holiday season on the way, many employers will be planning to reward staff with a celebratory party or event.
• However, there are important issues to consider, including the possible FBT and income tax implications of providing ‘entertainment’ (including Christmas parties) to staff and clients.
• FBT and ‘entertainment’ Under the FBT Act, employers must choose how they calculate their FBT meal entertainment liability, and most use either the ‘actual method’ or the ’50/50 method’, rather than the ’12-week method’.
• Using the actual method Under the actual method, entertainment costs are normally split up between employees (and their family) and non-employees (e.g., clients).
• Such expenditure on employees is deductible and liable to FBT.
• Such expenditure on non employees is not liable to FBT and not tax deductible.

Click here for Christmas Parties & Gifts December 2025