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GST and/or FBT on retirement gift to employee

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Newbie

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Retirement gift to former employee over $9k including GST. We have paid for gift using company funds.

Can we claim GST on gift?

Do we need to pay FBT for retirement gift to employee?

Are retirement gifts considered as ETP? 

What are the implications to the company for ETP

1 ACCEPTED SOLUTION

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ATO Certified

Community Support

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Hi @TCarrington

 

Because the value of the gift exceeds $300, it is not exempt from FBT. Generally employers can claim an income tax deduction for the cost of providing  fringe benefits and claim GST credits for those items provided as fringe benefits. I encourage you to check out the FBT guide for employers. Our website also has examples of ETP's. You will also find helpful links to determine the category that applies to your circumstances.

 

Hope this helps.

 

Ari

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @TCarrington

 

Because the value of the gift exceeds $300, it is not exempt from FBT. Generally employers can claim an income tax deduction for the cost of providing  fringe benefits and claim GST credits for those items provided as fringe benefits. I encourage you to check out the FBT guide for employers. Our website also has examples of ETP's. You will also find helpful links to determine the category that applies to your circumstances.

 

Hope this helps.

 

Ari