Maximise your tax deductions with Christmas gifts and entertainment planning
Author: Kelly Date Posted:3 December 2019
It's officially December and our corporate team are keen to make sure you maximise your business deductions and GST claims to get the best value from your festive activities. It’s worthwhile to your bottom line to consider the best way to structure your appreciation spend to maximise your outcome.
With our bean counting hats on, here are our $$ tips to help you to show your appreciation to your valued suppliers, team and clients for 2019:
- Gifts to clients - YES
You can claim a tax deduction and claim back the GST if not entertainment (ie chocolate, wine and hampers get a big tick!).Maximise the return on your investment by personalising your gift with your company brand and appreciation message.
- Gifts to your team - YES
Team gifts are tax deductible. You can claim back the GST if it's not entertainment and it’s important to note that the spend on an individual gift must be below $300 (if over $300 FBT is payable).
- Christmas parties for clients are NOT tax deductible
What’s more, GST cannot be claimed.
- Christmas parties for your team are NOT tax deductible
Note that you can only claim back GST if you pay FBT. Best to plan ahead and avoid paying fringe benefits tax if you can.
At risk of obvious promotion, Edible Blooms are a great way to gather the team around, share in some delicious treats and reflect on the year that has been and the year to come in 2020. And reviewing the above, Edible Blooms are the perfect way to please your CFO:-)