IN THIS GUIDE :
MERRY CHRISTMAS
LEE & LEE ACCOUNTANTS
END OF YEAR UPDATE • 2017
The gift of FBT-free giving
The holiday season is a time in which many employers look to thank their employees for their hard work throughout the year .
Employers will often plan a work Christmas party , or decide to give their staff a Christmas gift to show their appreciation . While throwing a Christmas party is a great end-of-year celebration , employers should be aware of the tax consequences of holding such an event to avoid a nasty fringe benefits tax ( FBT ) bill .
A number of benefits are exempt from FBT , including the work Christmas party , providing they follow certain rules . The ATO allows employers a $ 300 threshold per employee for Christmas parties . The most tax-effective option is to host the Christmas party on the business premises , on a working day and extend an invitation to current employees only . Expenses such as food and drink are exempt from FBT for employees and thus , a tax deduction or GST credit cannot be claimed .
Employers can also extend invitations to
Going green in the new year
There ’ s no better time than the new year to transform your office into an ecological , environmentallyfriendly space .
While there are initial up-front costs of switching to green , the long-term savings will be substantial and you will also be reducing your carbon footprint which is great for everyone !
Consider implementing the following changes : Go paperless
Reducing paper use and printing is great for the environment and will save you money in buying paper , printing , and administration costs associates such as spouses and be exempt from FBT , provided the combined cost for the employee and their associate remains below $ 300 .
In addition to hosting a Christmas party , employers can also provide employees with gifts that cost less than $ 300 per employee . Therefore , employers can avoid an FBT bill providing they host a party that costs less than $ 300 per employee and also give each employee a Christmas gift worth no more than $ 300 .
Non-entertainment gifts below this price are usually exempt from FBT , and an employer can also claim tax deductions and GST credits for every non-entertainment gift they give to staff members . Types of gifts typically include beauty or skincare products , flowers , wine , gift vouchers or hampers .
When giving non-entertainment gifts exceeding the value of $ 2000 within an FBT year , employers should also be aware that some fringe benefits may need to be included on payment summaries .
if you end up automating processes that you would otherwise need an employee to do , such as filing .
Save energy
Switch to more energy efficient products through :
• Replacing lighting with LED lighting
• Taking advantage of natural lighting
• Turning off appliances at the powerpoint at the end of the day
• Sell a product that is green
Not only can you alter office practices , but you can also adopt more environmentallyfriendly business practices , such as sourcing products from an underprivileged community , or partnering with a charity and donating a percentage of profits to said charity . This is a great way to bring in more customers and keep them loyal to the business , making you more money in the long run .
Encouraging smart commuting
Provide incentives to employees who ride , take public transport or carpool to work .
Lead by example
The best way to encourage your employees to practice green behaviours is to set a standard for them to follow . An example of how to do this is by using and encouraging keep cups for takeaway coffee and reducing plastic packaging .
Benefits of a business valuation
Knowing the value of your business is critical , especially nearing the end of the year . It allows you to enter the new year with an informed understanding of the business ’ worth and potential .
There are numerous benefits of getting a business valuation , including the following :
Understanding your business ’ worth
Conducting a business valuation can provide you with accurate , reliable data as to how much your business is actually worth . Your prediction as to what your business is worth may be completely off . Whether your belief is that the business is worth a considerable amount more or less , actually knowing the worth can allow you to act accordingly .
Evaluating business growth
A business valuation will provide you with the data to adequately assess how successful your business has been . In fact , a business valuation at the end of each year can help you evaluate how to implement strategies for the new year to increase profit and business value .
Strategic planning
Without knowing the true value of the business , strategic planning for the future becomes extremely difficult ; it is not based on true data . Knowing how much your business is worth allows you to reassess how effective your marketing and business practices are , and how to improve upon them .
IN THIS GUIDE :
• End-of-year admin tasks
• Kickstart your holiday marketing
• The gift of FBT-free giving
• Going green in the new year
• And more !
UPDATE
MERRY CHRISTMAS
We would like to take this opportunity to wish all our clients and their families a very happy Christmas .
We will be taking a short break over the Christmas period .
OUR CLOSING DATES ARE :
24th Dec 2017 and reopen the 9th Jan 2018
LEE & LEE ACCOUNTANTS
HEAD OFFICE : HYPER CENTRE SUITE 5 , GROUND FLOOR 50-56 SANDERS STREET UPPER MT GRAVATT QLD 4122
END OF YEAR
‘ 17
THE END OF YEAR GUIDE FOR YOU AND YOUR BUSINESS
Avoiding the Grinch this Christmas
The annual work Christmas party is a much-anticipated event ; a chance to celebrate the year ’ s achievements with colleagues and forget about work for a night .
However , employers must be wary of the legal risks associated with holding an employersponsored event . Employers have a duty of care and must meet OH & S standards to ensure the end-of-year celebration does not go awry .
Save HR from a headache with these tips : Outline expectations in advance
Send a memo to all employees before the event reminding them of what is considered appropriate and inappropriate conduct . Setting the standard prior to the party helps to prevent misconduct and ensures employees are aware of the repercussions if they do not behave appropriately .
Remember ‘ responsible service of alcohol ’
As most Christmas parties will involve some degree of alcohol , employers must take reasonable steps to ensure alcohol is provided
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responsibly , i . e ., providing food , low alcohol and non-alcoholic drink options , and having trained staff to serve alcohol .
Provide transport Employers can be held liable for an employee ’ s safety and actions when travelling to and from the Christmas party . Organising travel arrangements such as a mini bus or pre-booking taxis ahead of time will help to eliminate potential safety risks such as drink driving or a fight on the way home . Allocate a supervisor Allocating one responsible person or group of managers to monitor behaviour and deal with any issues that may arise is important as employers can be held liable for the actions of their staff including sexual harassment , discrimination , and bullying . Create clear start and end times
Be sure to define the start and end time of the event and stay clear of endorsing any ‘ afterparties ’ held once the official Christmas party is finished . Employers can easily find themselves in a legal nightmare if they fail to do so .
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This publication is for guidance only , and professional advice should be obtained before acting on any information contained herein . Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication . Publication 18 October 2017 .