Christmas – The ATO Grinch, End of Year Tax deductions and other celebrations

Key Dates:

November 21

  • Lodge & pay October 2018 monthly business activity statements

November 25

  • Lodge and pay quarterly activity statements for September quarter if lodged electronically through a tax or BAS agent.
  • Trust Resolutions re beneficiaries
  • Company resolution for directors fees that are definitely committed

November 28

  • Lodge & pay the superannuation guarantee charge (SGC) and lodge a SGC statement for employers who failed to pay the minimum superannuation guarantee contributions by 28 October 2018.
  • The SGC is NOT tax deductible

December 1

  • Pay income tax for companies and superfunds where lodgements was due 31 October 2018

December 21

  • Lodge and pay November 2018 monthly business activity statement

ATO: – “The Xmas Grinch”

– Xmas Parties & Entertainment

When it comes to “Work Christmas Parties and deductions” the most important tax factor to consider is whether or not your party involves “entertainment”.

The tax office considers an event to involve “entertainment” if:

  • Alcohol is served
  • It is held at a restaurant, café or any venue off business premises
  • If the event involves “entertainment” it is not deductible.

Christmas Tax Planning

For the entire cost of a Christmas party to be a tax deductible expense with no liability for FBT (Fringe Benefits Tax) the following criteria must be met:

  • Held on your business premises
  • Held on a work day
  • No alcohol
  • Held for employees, suppliers and business associates
  • Food: light meal or “finger food”
  • No employee associates spouses, children etc) to be present
  • If cost per attendee (employee) is less than $300 no FBT applicable

Other considerations

  • Non- Entertainment gifts to third parties such as suppliers etc is not subject to FBT and are tax deductible to the employer who can also claim the GST credits

Best Gifts that are not entertainment (but keep under $300) include:

  • Christmas hampers
  • Bottles of alcohol, skin care items
  • Gift vouchers, perfumes and pen sets, so celebrate the Xmas season

Merry Christmas from all at Christian Fox and a very Happy New Year

If you have any queries regarding the above matters please do not hesitate calling myself, Andre Christian, Accredited Superfund Auditor or either of my partners:

  • Jennifer Chen: Tax Partner or
  • Richard Wakefield: Financial Planning Partner
  • On (02) 9829 3111 For a free consultation
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Andre Christian
Andre Christian is a Registered Company Auditor having gained his initial training at Ernst & Young before becoming Audit Manager at Grant Thornton National firm, Thompson Douglas & Co Chartered Accountants. His passion for business improvement, more efficient trading structures and preparing business valuations for both clients and expert court reports led him to form his own practice Christian Fox Accountants. He is a long and proud resident of the Macarthur region with a young family Having grown up in Long Point, Macquarie Fields Scenic Nature Reserve. He took over the previous offices of Arthur Young Chartered Accountants where they were based in Ingleburn. A current Director of a local Not for Profit Organisation assisting community health issues in Macarthur and an active local Rotarian. Proud to be involved with the Smarter Macarthur Business Magazine as a founding contributor to Smarter Advice B2B.