Ali + Julie
Co-Founders, GroupTogether.
Life’s busy. That’s why we’re here to make it easy for you to collect money from a group. Less wasted time, less packaging waste, and spending a little less but giving a lot better!
Gifting Tips
FBT and Gift Cards: What You Need to Know About Gift Cards and Tax in Australia
FBT & gift cards in Australia: the $300 minor benefits rule, why cards can save ~10–12% vs cash and the records to keep to stay compliant.
By Ali + Julie
September 25, 2025
Australian employers have a unique tax advantage when they choose gift cards over cash, if they understand the rules. This guide explains how to stay FBT-free, save money and delight your team.
TL;DR Summary
Gift cards in Australia can be FBT-free, saving your business ≈10–12% compared to cash bonuses.
Best Practice:
- ≤ AU$300 per person per occasion
- 2–3 times a year max
- Use a solution like GroupTogether Bulk Gift Cards to simplify, personalise and stay compliant
Are gift cards treated differently from cash bonuses?
Yes! And this can save you money. Gift cards are considered a fringe benefit but may be exempt from FBT under the Minor Benefit Exemption if:
- Value ≤ AU$300 (incl. GST) per person per occasion
- Benefit is provided infrequently
How much can you give under the Minor Benefit Exemption?
- Up to AU$299.99 per employee per occasion without triggering FBT.
- Can do this 2–3 times per year safely without breaching the “infrequent” test.
Example Calculation
100 employees × $250 = $25,000 gift cost
- FBT payable: $0 (if under $300 & infrequent)
- If given as cash: add about 10–12% for super & payroll tax → extra $2,500–$3,000 cost
Why not just give cash?
Because cash is treated as salary:
- Requires PAYG withholding
- Attracts superannuation contributions
- Likely triggers payroll tax
Gift cards under $300 avoid all of that and save ≈10–12%.
Example: RetailCo switched from $200 Christmas bonuses to $200 gift cards using GroupTogether. With 500 staff, they saved ~$12,000 in super + payroll tax.
What are the best types of gift cards to give?
- GroupTogether AnyCard / multi-retailer / swap cards: broad range of brands, gives employees the ultimate choice, good for diverse teams.
- Restaurant cards: great for holiday gifts or team celebrations.
- Store-specific cards: only if you know the brand will work for everyone.
Gift Card vs. Cash/Bonus – At a Glance
Factor | Gift Card | Cash / Bonus |
Tax treatment | FBT-free ≤ AU$300 if infrequent | Taxed as salary |
Extra cost | 0% (if FBT-free) | ≈ 10–12% extra |
Frequency limit | ≤ 2–3 times per year | No limit |
Employee perception | Feels like a gift | Feels like pay |
Admin effort | Low – single payment | Payroll processing required |
How to stay compliant
- Keep detailed records (who, what, when)
- Watch cumulative benefits — multiple gifts >$300 each may trigger FBT
- Make sure gifts are not part of a regular pattern (monthly = risky)
Why GroupTogether is the best solution for staff gift cards in Australia
- FBT-friendly: Easily stay under AU$300 limit
- One-click sending: Upload your recipient list and pay once
- Instant email delivery: Give a digital gift card that's sent in minutes (perfect for last-minute gifting)
- Personalisation: Add your company logo and unique message
- Premium digital gift experience: Including an envelope embossed with the recipient's name
- Choice: 100+ retailers with the AnyCard
- Compliance ready: Get a single receipt for FBT records
- Full control: Track everything in your dashboard, resend and even receive thank you notes
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