Workplace gifting comes in two flavours, and they follow different rules. There is the team chipping in for a colleague's farewell, milestone or new baby, which is just a group gift among friends. And there is the employer giving staff a gift, which has a tax angle worth getting right. This guide covers both, with practical ideas and the one ATO rule that keeps employer gifts simple.
Employer gifts and the $300 FBT rule
If the business is giving the gift, the ATO's minor benefits exemption is the rule to know. A gift to an employee is generally exempt from fringe benefits tax when it costs less than $300 including GST, is given on an irregular and infrequent basis, and is not a reward for performance. A $200 hamper at Christmas usually qualifies and stays tax-deductible; a $400 gift, or a regular monthly one, can tip into FBT.
So for staff gifts, the simple approach is to keep each one under $300 including GST and occasional. Gift cards, hampers, a nice bottle, or an experience all fit comfortably under the threshold. Confirm your own position with your accountant, since the frequency and the total of similar benefits both affect the result.
Gift ideas under the threshold
Whether it is the employer or the team giving, these suit a workplace:
- A gift card with genuine range: a major retailer, a restaurant group, or an experiences voucher.
- A quality hamper built around food, coffee, or a wind-down-at-home theme.
- An experience: a class, a tasting, or a spa voucher, which feels more personal than another mug.
- A charitable donation in the person's name, for colleagues who would rather give than receive.
- A contribution to something they have mentioned, from a team that knows them well.
Running a team collection for a colleague
When the team is gifting a colleague, it is the same mechanic as any family group gift: everyone puts in a manageable amount towards one thing. One person organises, sets a per-head amount, usually $10 to $30 depending on how close the team is, shares an online contribution link, and writes the card with every name. Collecting online means nobody is chasing cash at desks and people working from home or on leave can still join in. For amounts across other occasions, our how much to give guide is a useful reference.
For appreciation gifts beyond the office, including teachers and coaches, our group appreciation gift guide covers the wider picture, and our thank-you gifts guide has more present ideas.
Common questions
Do employers pay FBT on staff gifts?
Generally not, if each gift costs less than $300 including GST, is given irregularly, and is not a performance reward. That is the ATO's minor-benefits exemption. Check your specific circumstances with your accountant.
How much should a team give for a colleague's gift?
A per-head amount of $10 to $30 is a common approach, scaled to how close the team is. Pooling lets the group give something better while keeping each share small.
What is a good employee appreciation gift?
A flexible gift card, a quality hamper, or an experience all work well and sit comfortably under the $300 FBT threshold. The card and the genuine thank-you matter as much as the gift.
EasyRegistry lets a workplace pool one gift for a colleague, with everyone contributing online and the organiser tracking it in one place. Start a group gift at EasyRegistry.