FBT Rules & Exemptions
We appreciate your continued trust and partnership throughout the year. As we approach the holiday season, here are some important key tax updates. If you have any questions or need assistance, please contact our office.
HOLIDAY CLOSURE
Our office will be closed from 19 December 2025 and will reopen on
Monday, 5 January 2026.
DECEMBER TAX UPDATES:
1. FBT Minor Benefits Exemption (< $300)
Certain benefits provided to employees may be exempt from Fringe Benefits Tax (FBT) if:
✔ They are infrequent and irregular, and
✔ Cost less than $300 (incl. GST) per employee
Examples:
- Team lunches
- Christmas gifts or gift cards
- Movie tickets
- Flowers
- Taxi/Uber fares home
Important:
- These benefits are not tax-deductible, and you cannot claim GST credits.
- Keep detailed records of what was provided, where, and the cost per employee.
2. FBT Entertainment Rules
What counts as entertainment?
- Food and drink (e.g., restaurant meals, parties, alcohol)
- Recreational activities
- Accommodation or travel
Tax Interaction:
- FBT: Applies to entertainment for employees
- GST: Credits claimable based on method
- Income Tax: Deductible based on method
Two Methods:
- 50/50 Method:
- FBT on 50% of all entertainment expenses
- GST claimable on 100%
- Income tax deduction on 50%
- Best for simplicity
- Actual Cost Method:
- FBT only on employee portion
- GST and income tax apply only to that portion
3. Payday Super – Effective 1 July 2026
From 1 July 2026, super guarantee payments must be made on payday and received by the employee’s super fund within 7 business days.
Super Rate: 12% from 1 July 2026 onwards
Penalties:
- Late payments attract the Super Guarantee Charge (SGC), which includes interest and admin fees
- SGC will become tax deductible from 1 July 2026
Action Required:
Review payroll systems now to ensure compliance and avoid penalties. Contact us for assistance.
-4. Great News for Small Businesses – Instant Asset Write-Off Extended
The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025has officially received Royal Assent, extending the $20,000 instant asset write-off until 30 June 2026.
Key Features:
- Threshold: Up to $20,000 per asset (excluding GST)
- Eligibility: Businesses with aggregated turnover under $10 million
- Timing: Assets must be first used or installed ready for use between 1 July 2025 and 30 June 2026
- Multiple Assets: $20,000 limit applies per asset
- Assets Over $20,000: Added to small business depreciation pool
Examples of Eligible Purchases:
- Tradies: Power tools, ladders, compressors
- Hospitality: Coffee machines, refrigeration units
- Professional Services: Computers, tablets, office furniture
Wishing You a Safe and Festive Season
From all of us at Rose Corporate, we wish you and your loved ones a joyful holiday season and a prosperous New Year. Thank you for your support—we look forward to working with you in 2026!
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