Parcelle · Christmas 2026
What the ATO says about Christmas gifts for staff and clients, the $300 rule in plain English, and which gifts sit under it.
Every year, somewhere between the first Christmas order and the last invoice, someone in finance asks the same question: can we claim this? Here is what the Australian Taxation Office publishes on the subject, in plain English, with links to the source at the end.
Christmas gifts for staff: the $300 rule
The ATO's guidance for employers says: “If you give your employees a Christmas gift, you don't pay FBT if the value of the gift is less than $300 per person and it would be considered unreasonable to treat it as a fringe benefit.” This is known as the minor benefits exemption, and it has two conditions. Both must be met:
- The gift is worth less than $300 per person.
- It would be unreasonable to treat the gift as a fringe benefit.
What makes it “unreasonable” to treat a gift as a fringe benefit?
The ATO lists the things it looks at:
- How often and how regularly you give similar gifts. The more frequent and regular, the less likely the exemption applies.
- The total value of identical or similar gifts over the year.
- The total value of other benefits given alongside the gift.
- How difficult it would be to record and value the gift.
- The circumstances, including whether the gift looks mainly like part of someone's pay.
The ATO also lists benefits the exemption generally doesn't cover, including benefits provided under a salary sacrifice arrangement.
Christmas gifts for clients
FBT is a tax on benefits given to employees, and the ATO states that there is no FBT on benefits provided to clients. Whether you can claim a deduction for the cost of a client gift depends on what the gift is and why you gave it, and the rules differ between physical gifts and entertainment such as meals or event tickets. Your accountant can tell you how your client gifts should be treated.
Corporate Christmas gifts under $300
If you're choosing staff gifts with the $300 threshold in mind, most of Parcelle's Christmas range sits below it. Ask your accountant how delivery and GST count toward the threshold for your business.
| Gift | Price |
|---|---|
| Christmas Treats | $75 |
| CinCin! | $86 |
| Gourmet Bon Bon | $95 |
| A Season's Greetings | $115 |
| Merry Holidays (no alcohol) | $141 |
| Moët Christmas Cellar | $149 |
| The Shoreline Graze | $165 |
| The Aperitivo Hour | $182 |
| The Spritz Society | $198 |
| Merry and Bright | $273 |
Shop the Christmas Gift Emporium →
Keeping records
Good records make the conversation with your accountant easy. Parcelle provides a tax invoice with every order. For larger orders, keep a list of who received each gift and whether they are staff or clients, and note the occasion.
What about the Christmas party?
Christmas parties have their own FBT and deduction rules, which depend on where the party is held, who attends and what it costs per head. The ATO's page on common entertainment scenarios, linked below, works through examples.
Frequently asked questions
- Do I pay FBT on Christmas gifts for staff?
- The ATO says you don't pay FBT on an employee Christmas gift if its value is less than $300 per person and it would be unreasonable to treat it as a fringe benefit. Both conditions must be met. Check your situation with your accountant.
- Is the $300 limit the only test?
- No. The gift must also be one that it would be unreasonable to treat as a fringe benefit. The ATO considers how often and how regularly you give similar gifts, their total value, and whether the gift looks like part of someone's pay.
- Is there FBT on Christmas gifts for clients?
- The ATO states there is no FBT on benefits provided to clients. Whether the cost is deductible depends on the type of gift and your circumstances, so confirm it with your accountant.
- Does Parcelle provide a tax invoice?
- Yes. Every Parcelle order comes with a tax invoice.