Are you considering paying a Christmas Bonus for your staff?
Yes absolutely, they deserve it we hear you say. You may wish to consider what type of bonus it is as each has a different tax outcome.
If it is paid as a bonus, then you will need to include as part of their wages and remit PAYG Withholding and super but it will be tax deductible.
If it is paid as a gift – hamper, gift card anyone – and it’s under $300 per staff member (spontaneous & ad hoc) then it would be considered a minor benefit and you won't have to worry about FBT, but it won’t be tax deductible