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Credit/gift cards to employees fbt and gst

Newbie

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Can an employer provide employees with a gift card such as a visa gift card that is under the value of $300 (a minor benefit) and not linked to an entertainment product and does this attract FBT?

 

Would the employer be able to claim a tax offset/deduction for the example of Visa gift cards for employees if under the value of $300 and not linked to an entertainment product? 

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ATO Certified Response

ATO Community Support

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Hi @jmckennariey,

 

Non-entertainment gifts for employees that meet the minor benefits conditions (in being less than $300 and meet the five associated criteria) are usually exempt from FBT.

 

Our Fringe benefit tax guide for employers has some pretty useful information under chapter 20 if you search for the term 'minor benefit'. Additionally, this ATO Interpretative decision may be relevant as it explores FBT and gift cards.

 

As for claiming a tax offset and GST, special rules apply for gift cards and vouchers. I'd recommend to take a look at the GSTR 2003/5, and also some further information under previous forum posts 'Gift cards and GST' and 'Gift cards for employees', as similar questions have come up too.

 

Hopefully this helps guide you.

 

RachATO

 

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @jmckennariey,

 

Non-entertainment gifts for employees that meet the minor benefits conditions (in being less than $300 and meet the five associated criteria) are usually exempt from FBT.

 

Our Fringe benefit tax guide for employers has some pretty useful information under chapter 20 if you search for the term 'minor benefit'. Additionally, this ATO Interpretative decision may be relevant as it explores FBT and gift cards.

 

As for claiming a tax offset and GST, special rules apply for gift cards and vouchers. I'd recommend to take a look at the GSTR 2003/5, and also some further information under previous forum posts 'Gift cards and GST' and 'Gift cards for employees', as similar questions have come up too.

 

Hopefully this helps guide you.

 

RachATO