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Tax and super rules for the festive season Posted on November 12, 2022
Small businesses gearing up to hire Christmas and summer casuals for what (we hope) will be a prosperous peak period, or who wish to celebrate without restriction this festive season, must keep the new super and tax rules in mind.
Summer casuals – Employers are now required, as of 1 July 2022, to pay their workers a superannuation guarantee at a rate of 10.5%, even if for only a small number of hours. The $450 threshold for superannuation has been removed. Employees under 18 are only eligible for superannuation if they work more than 30 hours each week.
Christmas parties and entertaining – If you’re planning on gathering the team for the first restriction-free Christmas part in two years, you must keep Fringe Benefits Tax (FBT) in mind. FBT relates to entertainment by way of food, drink or recreation and/or accommodation or travel in connection with such entertainment. The amount you need to pay in FBT depends on the amount you spend on each employee, when and where your party is held, who attends and the value and type of gifts you provide. It is likely you’ll only be exempt from FBT if the Christmas party amount you spend is less than $300 per employee, and/or if a Christmas gift for an employee is less than $300.
It is best to seek the advice of your tax agent to ensure you’re compliant with your FBT obligations and that you’re free to enjoy a well-earned time of celebration and prosperity this peak season. Contact us on [email protected]