Welcome to our December monthly newsletter!

The Chesterton Accounting team are taking a two week break this year and will be closing on Friday, the 23rd of December from 12pm and opening again on Monday, the 9th of January at 8.30am. We would love to thank all our loyal clients for their support this year and can’t wait to see what next year holds for our South Burnett businesses.

 

Happy Holidays GIFs | Tenor

 

Head on over to our website

 

 

Monthly tax tip:

It’s the time of year again for gifts, bonuses and parties! But what exactly is tax deductible? Gifts to customers can be tax deductible if they are given in hopes of increasing your taxable income (e.g. to retain a client or to encourage further sales) and are non-entertainment based. Gifts to employees are also tax deductible if they are non-entertainment based and are given to retain employees. Christmas parties are generally considered non-deductible entertainment however can be claimed in the correct circumstances. If the Christmas party is held on business premises, during paid staff hours and work continues once it ends then the food purchased would be considered a staff expense (e.g. a lunch-time pizza party). If however, the party happens after work hours at an external location then it won’t be tax deductible (e.g. drinks and nibblies at the local pub at 5pm after work). Please contact our office if you would like to know if your Christmas gifts and party expenses can be tax deductible. Please see below for more examples.

Non-entertainment-based gifts – hampers, wine, gift vouchers, flowers, jewellery, etc.
Claim tax deduction/GST credits? Yes, for both employees and clients
Fringe benefits tax liability? Only if spending more than $300 per employee

Entertainment-based gifts – movie tickets, tickets to sporting event, travel costs for a holiday/vacation
Claim tax deduction/GST credits? Clients – no. Employees – no tax deduction unless FBT applies (FBT applies once the gift is over $300 per employee)
Fringe benefits tax liability? Only if spending more than $300 per employee

Staff Christmas lunch – light refreshments provided to all staff during work hours in the office
Claim tax deduction/GST credits? Yes
Fringe benefits tax liability? No

Christmas party – food and alcohol provided to staff/clients after work hours
Claim tax deduction/GST credits? Clients – no. Employees – no tax deduction unless FBT applies (FBT applies once the gift is over $300 per employee)
Fringe benefits tax liability? Only if spending more than $300 per employee

If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.

 

Book an Appointment

 

When Is Your Birthday? | Engoo

 

 

Important Dates!

21 December:

  •       Lodge and pay November 2022 monthly business/instalment activity statement

23 December:

  •      Chesterton Accounting office will be closed from 12pm for the holiday period

 

Click to email us about the above

 

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