Gifts:

•  If provided to employees or their family, these will be subject to FBT, tax deductible and a GST credit will be claimable. An exception to this is if they are under $300 per employee (or family member if provided direct to them) in which case, if they are entertainment (e.g. movie tickets), they will not be subject to FBT but an income tax deduction and GST credit will not be able to be claimed. If the gifts are under $300 (per employee) and are not entertainment (e.g. a Christmas hamper), they will be exempt from FBT while an income tax deduction and GST credit can be claimed.
•  If provided to clients/suppliers and are entertainment/gifts, these will not be subject to FBT but an income tax deduction and GST credit will not be able to be claimed. Non entertainment/gifts will, however, be deductible and a GST credit will be claimable on them while remaining not liable to FBT.

Christmas Parties:

•  If held at on external premises, these will be subject to FBT for attending employees while an income tax deduction and GST credit will be able to be claimed. However, if the value per employee (& each family member attending) is less than $300, they will not be subject to FBT but an income tax deduction and GST credit will not be able to be claimed. Finally, the amount attributable to clients/suppliers attending will not be subject to FBT but an income tax deduction and GST credit will not be able to be claimed.
•  If held on business premises, there will be no FBT for employees regardless of the amount but the rules for their family members as well as clients and suppliers remain the same as for functions on external premises.