With the end of financial year (EOFY) looming, many employers will start thinking about handing out bonuses and other gifts as a way of thanking their employees, clients, customers and suppliers.
As a business owner you will have to consider the tax implications of these gifts―the type of gift you give actually does matter. If the notional tax value per person is more than $300 you have to pay fringe benefits tax (FBT), which doesn’t fall under the ‘minor benefits’ exemption.
Co-founder of Prezzee digital gift cards, Matt Hoggett, says digital gifting such as gift cards offer EOFY friendly gifting options for businesses.
“Giving your staff an EOFY gift, such as digital gift cards, is a great idea as it could be exempt from FBT within certain limits,” he explains.
“This tax exemption also separately applies to any gifts provided to associates, meaning that a similar gift can also be provided to a spouse or partner of a staff member with the same positive tax outcome.”
In this online age, digital gifting is becoming more and more popular. In fact, digital gift cards are starting to replace the traditional plastic cards as business owners believe they offer a convenient, practical and reliable solution to gift giving. They also allow the recipient to choose their gift of choice.
“Gift cards are a quality, thoughtful present option and solve a range of problems including giving people the opportunity to be able to choose their own gift rather than receive a gift they may not have wanted.
"Last year we launched Prezzee Business in order to address the pain points of sending gift cards in bulk. Plastic gift cards take time to send and are costly to post. They can be easily lost and are not trackable.
“With Prezzee Business you can purchase and send digital gift cards instantly, track orders, manage your own account and even co-brand the gift experience. What's more, all the gift cards are securely backed up," Hoggett adds.
By Marion Gerritsen