SmartAwards™ - Tax implications of SmartAwards™ (Australia only)

Introduction 

We run a lot of Recognition & Reward programmes for clients, whether for long service awards, thank you awards or other team or individual incentives.

When a business begins to consider their options around implementing a Recognition & Reward program in Australia the tax legislation they will need to refer to is Fringe Benefits Tax.

Clients will need to decide or seek advice on whether Fringe Benefits Tax applies, or whether the awards fall under Minor Benefits legislation. Minor Benefits fall under Legislative Reference: Section 58P of the FBTAA.

Whichever option is chosen, Reward Gateway provides reports on everyone who has been awarded in a year so clients can reconcile and FBT to be paid.

If clients want to avoid the cost of awards and tax altogether, our eCard peer-to-peer recognition product encourages saying a simple thank you with no money involved - so it's even simpler.

Read more about The power of eCards for driving continuous recognition

Please note, Reward Gateway are not tax advisors. Find out more about this particular topic on the Australian Taxation Office webpages and further information about employee benefits taxation in general should be sought from the Taxation Office or a tax advisor directly.