Is EOFY Gifting a Benefit?
As you successfully close to the end of the financial year, most companies take upon themselves to give back to their valuable employees in terms of a bonus or an end of a financial year gifting celebration; EOFY gifting. These gifting sessions are incorporated into a business to enhance employee morale and encourage them in their act of giving back to the company. Be your time to recognise the beautiful hard hard-working individuals and valuable employers at your company with a gift or a bonus that also falls under a reward.
Appreciating your employees by recognising and rewarding them at the end of the financial year is a meaningful way for businesses to thank their colleagues, clients and team members. These gifts are meaningful and are curated with personalised gifts, catering to their preferences and inclusive of your company’s branding. However, the real question is whether EOFY gifting is tax-deductible in Australia. In this blog, our experts have broken down what's tax deductible and what’s not!
Gifting Employees – What’s Claimable?
The gifts that you choose to give your employees may be considered tax deductible gifts if they meet certain criteria. Non-entertainment gifts such as gift hampers, wine bottles or gift cards may be considered as tax deductible gifts. These gifts must be under $300, including GST, per employee. As these gifts are fully tax deductible and not subjected to fringe benefit tax, FBT employers can give their employees a beautiful enough financial year gift!
Gifting Clients – What's the Rule?
All non-entertainment gifts, such as hampers, gift cards, wine bottles, household items and more, are tax deductible. However, if you choose to give your beloved employees any entertainment gifts such as concert tickets, meal coupons, restaurant meals and so on, these are not tax deductible at all.
Keep Records for the ATO
It is always important that you keep track of your expenses, regardless of whether they are tax deductible or not. This can help you gain a clear picture of whether your EOFY gifts are within your allocated budget. This can also give you proper insight into whether you must explore different avenues to contain your end of financial year gifts and opt for wiser choices, such as an end of financial year gift hamper or a gift bundle. Retaining the receipts while noting the purpose of it, alongside the people you gifted and what you gifted during the end of the financial year gifting season, would be beneficial for tax records. Documenting all your records smoothly will ensure smooth reporting during tax time.
Be Wise When Playing Nice!
Almost 90% of the EOFY gifts that you choose to give your beautiful colleagues can be deductible with the right tax strategy. You can consult your firm's accountant or an external party to support you with your EOFY gifting strategies. EOFY gifts can be in the form of gift tampers or end of the financial year gift bundles. Remember that EOFY gifts can be a smart and meaningful way for you to boost corporate relationships with your clients, colleagues and vendors. In most cases, EOFY gifts are tax deductible. However, depending on the type of gift you choose to give your recipients, the type of recipients you are hoping to gift this year and the value of your gift can matter in terms of tax deductions. Make sure that you stay at the right side of ATO (Australian Taxation Office) and plan your end of the financial year gifting strategy wisely.
If you are looking for reasonable and tax deductible gifts for your beloved recipients to give away at the end of this financial year, you have come to the right place. Hampers Galore proudly presents a delightful collection of end of the financial year gifts for you to give away to your corporate connections and boost the relationship that you have with them. We'll bring to you a delightful collection of products from gourmet eats to decadent chocolates, wines, whiskies, beers and a series of relaxation items. We promise you premium quality products packed into a beautiful gift box to surprise your beloved recipients, all priced at a reasonable rate to support you with your tax deductible strategy.
Visit us at Hampers Galore and explore every hamper we have for you to plan your End Of The Financial Year Gifts giving ceremony!
