As we draw closer to the festive season and Christmas shopping is underway, you’ve probably got your thinking cap on in regard to maximising your budget for gifts. Did you know that in certain circumstances Christmas gifts are actually tax deductible?
As an employer, you can provide tax deductible gifts to staff, clients and vendors. Conditions around tax deductible Christmas gifts change regularly, so we encourage you to check the latest information provided by the ATO.
Gifting charity donations for Christmas, however, is an option open to everyone, with fewer requirements to meet to boost your tax return.
When is a donation to charity given as a Christmas gift considered tax deductible?
Of all the Christmas gifts you could choose to give this year, charity donations will give back to families in need, as well as boost your next tax return.
For a charity donation to be considered tax deductible, it must be in an amount of more than $2, and not be given to a charity in exchange for goods or benefits (raffle tickets, entry to an event etc). The charity must also be endorsed as a Dedicated Gift Recipient by the ATO, and your receipt for the donation provided to prove your gift meets these requirements.
This means that when you choose a charity donation as a Christmas gift to staff or clients, your business is contributing towards its social responsibility portfolio, making a difference for families in need and taking the opportunity to give a meaningful and personalised gift to a valued member of your team. Charity gifts are a win for everyone involved!
When is a Christmas gift to staff considered tax deductible?
For a Christmas gift to be tax deductible, it must be gifted by a business entity to a staff member, client or vendor under certain conditions.
Gifts that are considered by the ATO to be “entertainment” fall under different conditions to those that are not, so we will address the two types of gifts and the tax benefits businesses can leverage separately.
Are Christmas gifts that are considered to be “entertainment” tax deductible?
Christmas gifts that the ATO consider to be entertainment include tickets to theatre performances, sporting events and concerts. Cinema tickets, airline tickets and other forms of event-based activities also fall within the category of entertainment.
Entertainment gifts that cost $300 or more are tax deductible, but they are also subject to Fringe Benefit Tax (FBT), something to keep in mind if you have an extensive client portfolio or staff list you wish to provide with experiential gifts. If, however, you give tickets that are less than $300 in value, they are not tax deductible, but they’re also not subject to FBT.
What about Christmas gifts that aren’t considered “entertainment”?
The conditions for gifts that aren’t considered entertainment are much different, and more likely to earn a business a decent boost to their tax refund.
Material gifts such as chocolates, Christmas hampers and baskets, wines, or fragrances, as well as monetary gifts in the form of vouchers or charity donations are not considered entertainment. Christmas gifts that aren’t entertainment are tax deductible regardless of value, and are only subject to FBT when valued over $300.
Show your appreciation for staff and clients with Christmas gifts that will boost your tax return
Christmas gifts are tax deductible when they meet particular conditions, but they will always boost your tax return when you choose a charity donation.
We encourage you to be creative in your choice and personalise toward the interests of your recipient. Show your appreciation for staff, clients and vendors by thanking them for a great year with a donation to charity for Christmas, an act of hope and kindness for the new year.
Learn more about ChildFund’s range of Gifts for Good by browsing our catalogue. Staff Christmas gift ideas include our ‘Most in Need’ products such as COVID-19 Protection Kits for Families, Food Packs for Families and Safe Sleep Bundles.
World Food Day is celebrated annually on 16 October and aims to raise awareness of ongoing efforts to eliminate poverty, hunger, food insecurity and malnutrition.
Why is World Food Day important?
World Food Day aims to raise awareness of global hunger and encourage people to take action. The observance highlights the need to ensure food security for everyone around the world, especially those in remote communities who are most vulnerable.
When was the first World Food Day?
The first World Food Day was held in 1979 and was established by FAO’s (Food and Agriculture Organisation of the United Nations) Member Countries at the organisation’s 20th General Conference.
What is the theme for World Food Day 2022?
The 2022 theme for World Food Day is “Leave no one behind”.
The FAO states that access to, and the availability of nutritious food is being increasingly impeded by current global challenges. The COVID-19 pandemic, conflicts, climate change, inequality and rising prices have created a domino effect. Millions of people around the world cannot afford a healthy diet, putting them at risk of food insecurity and malnutrition.
World Food Day 2022 aims to bring awareness to these issues, highlighting the need for better production, better nutrition, a better environment and a better life for all. The theme of “Leave no one behind” emphasises that a sustainable world is one where everyone counts.
How can you get involved and celebrate World Food Day?
Get involved and mark this World Food day in a meaningful way. Here are some of the ways you can get involved aYou can get involved and mark this World Food day in a meaningful way. Here are some of the ways you can get involved and celebrate World Food Day 2022:
- Spreading awareness: Through social media or word-of-mouth, spread awareness about food security and the injustice of this issue that affects so many people around the world.
- Educating yourself and others: Take the time to educate yourself and the people around you by sharing facts and statistics about food security and the consequences of food shortages. here are a number of YouTube videos, stories, factsheets and blogs for you to discover.
- Building a vegetable garden: A great way to teach your children about food is to show them where it comes from. Building a vegetable garden is a great way to spark conversation about food security and where our food originates. You can also consider donating fruit trees and vegetable seeds from our Gifts for Good range to families in need.
- Becoming conscious of your food waste: In Australia each year, we waste around 7.3 million tonnes of food, which equals about 300kg per person. Try and minimise your food waste and encourage others to do the same.
- Taking action and making a donation: You can make a difference by donating to our Hunger Crisis Appeal and encouraging friends and family to do the same. Your money will go towards improving food security for children who are suffering due to severe shortages of food and water.
Make a meaningful change to help fight famine this World Food Day
Join us in working towards a world where every child can live a life free of hunger and famine. Food security is one of the most essential foundations to reducing poverty overseas, and improving the lives of the children and families with whom ChildFund works.
Severe drought, coupled with the impacts of the COVID-19 pandemic, disease and conflict has led to more than 4 million people in Kenya being currently in need of emergency food assistance. More than a million of them are children and mothers, who are malnourished and urgently need food and water.
You can help to fight famine by donating to our Hunger Crisis Appeal this World Food Day, and ensuring that the most vulnerable children have a stable supply of food during the current global challenges. Your donation will provide emergency cash transfers to families who need it most.
Your donation will also help to provide water, livestock feeds, and prevent and treat malnutrition. Donate to our Hunger Crisis Appeal this World Food Day and help to make a difference to the lives of children and families most at risk.
