FBT Q&A ‘ Staff vouchers in excess of $300
Can the minor benefit rule be applied to the provisions of ad hoc gift vouchers to staff even where the value of the voucher exceeds the minor benefit threshold of $300?
This is a feature article available to the public. For access to all articles from TaxEd, please click here to become a member.
We give Gift/Voucher cards to staff members where all of the following circumstances apply:
- We give a Gift/Voucher card to a staff member for reward/recognition.
- These cards are given on an infrequent and irregular base.
- The value of a card is equal to or greater than the threshold value ($300).
Is the gift card Fringe Benefit taxable?
Where the value is $300 or more then the minor benefit exemption cannot be accessed. In order for the minor benefit exemption to be accessed the notional taxable value of the benefit must be less than $300.
Disclaimer: Information provided in this article, while correct at time of publishing, is subject to change.