Why eGift Cards Beat Cash Bonuses at EOFY (and What the ATO Actually Says)

With EOFY on the horizon, it’s time to look for ways to reward employees and recognise their hard work throughout the financial year. While cash bonuses are a traditional option, more employers are turning to eGift Cards – partly because they’re flexible and practical, and partly because no one has ever cried tears of joy over extra PAYG withholding. No one. 

Somewhere in Australia, right at this moment, an HR manager is desperately trying to decode all the mind-boggling ATO rules. We’re here to simplify the process – here’s everything your business should know about the ATO’s Fringe Benefits Tax (FBT) rules when it comes to weighing up cash bonuses and eGift Cards.

Why do businesses give EOFY bonuses?

EOFY bonuses are often used to recognise employee contributions, celebrate team performance and improve morale at the end of the financial year. For many businesses, they’re also an opportunity to reinforce workplace culture and employee appreciation.

While cash bonuses have traditionally been common, businesses are increasingly exploring more flexible employee reward options.

Why are eGift Cards becoming more popular than cash bonuses?

eGift Cards offer employees more flexibility while often feeling more personal than a standard payroll bonus. Instead of additional money disappearing into bills, groceries or tax deductions, an eGift Card creates a more visible and memorable reward experience.

The added bonus (pun completely intended)? They’re also easier to distribute across remote and hybrid teams, making them a practical EOFY gifting solution for modern workplaces.

Are cash bonuses taxed in Australia?

Cash may be King in some corners, but when it comes to staff gifting, there’s a major catch. Cash bonuses are generally treated as ordinary income and taxed through payroll like regular wages. Yep, you read that right. That means employers need to manage PAYG withholding and superannuation obligations where applicable, so the employee may receive less than the original bonus amount after tax is applied. Not to mention, you’ll have to whip out the calculator and spreadsheets just to work out what you owe the tax man. 

Are eGift Cards taxable for employees?

eGift Cards tend to be treated differently from cash bonuses under Fringe Benefits Tax rules. In some situations, eGift Cards provided under the ATO’s minor benefits exemption may qualify as FBT exempt if they meet specific conditions, with factors including the value of the eGift Card, how often gifts are provided and the circumstances surrounding the benefit. 

What is the ATO minor benefits exemption?

The ATO’s minor benefits exemption may apply to certain employee benefits valued under $300 including GST. The exemption is commonly used by businesses when providing occasional staff gifts or rewards. When they say occasional, they mean occasional. A few times a year is likely fine, but if you start offering monthly gifts for staff, you’ll face the wrath of the ATO. 

Note: Employers should review the full ATO criteria carefully, as frequency and overall benefit patterns affect eligibility.

Why do employees often prefer eGift Cards?

eGift Cards give employees the flexibility to choose something they genuinely want or need – this makes the reward feel more personal while avoiding the challenge of selecting a single gift that suits every employee. (Spoiler alert: there isn’t one.)

Flexible eGift Cards also solve the challenge of picking the perfect gift across different age groups, locations and personal preferences.

Why are eGift Cards useful for remote and hybrid teams?

eGift Cards are simple to send digitally – especially when you opt for a streamlined platform like GroupTogether – making them ideal for remote, hybrid and distributed teams. Employers can reward employees instantly without needing to coordinate physical deliveries or office collections. 

That means no awkward reminders, no counting cash and absolutely no last-minute delivery panic. Bulk eGift Cards are your best bet when it comes to sending out gifts to your staff, whether you’ve got 1 or 1000, the process is quick, affordable and automated. 

What are the benefits of using an AnyCard for EOFY gifting?

The AnyCard gives employees the flexibility to choose from a wide range of retailers – we’re talking 100+ – along with self-care and holiday experiences rather than being restricted to a single store. Combined with GroupTogether collections and digital group cards, it massively helps reduce the admin involved in organising EOFY staff rewards.

Where can businesses check the official ATO rules?

Businesses should always review current Australian Taxation Office guidance before providing employee gifts or rewards. If you’re feeling jurisprudential (or just want an excuse to use that word), you can view the ATO’s full body of information on minor benefits and Fringe Benefits Tax here: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax

FAQ: You Ask, We Answer

Q: How can businesses send eGift Cards in bulk?

A: Platforms like GroupTogether make it easier to organise bulk eGift Card gifting for teams, departments or entire companies. Instead of manually purchasing individual cards, tracking email addresses or coordinating separate collections, teams can streamline gifting in one place. This is especially useful during EOFY when companies may be recognising multiple employees at once.

Q: Can GroupTogether help with EOFY employee gifting?

A: Yes – GroupTogether is designed to simplify workplace gifting and group celebrations by helping businesses create digital group cards, collect contributions online, organise employee gifts, send flexible eGift Card options like the AnyCard and manage gifting for remote or hybrid teams. 

Q: Why is the AnyCard the ultimate gift card?

A: The AnyCard is a flexible eGift Card option that allows recipients to choose how they’d like to use their gift – and where. That includes mixing and matching. Instead of playing guessing games, you can make staff feel appreciated with the gift of choice. Because, no, your team’s admin does not need another branded mug. 

Q: Are bulk eGift Cards good for remote teams?

A: Absolutely, bulk eGift Cards work particularly well for remote teams, hybrid workplaces, national companies and businesses with multiple offices. Because everything is digital, employees can receive gifts instantly regardless of location – no postage delays, no lost packages and no return to sender drama. 

Q: What are the benefits of sending digital group cards at EOFY?

A: Digital group cards make employee recognition easier because the whole team can contribute messages in one place. That means no physical cards getting lost, no chasing signatures and no desk-to-desk coordination. They also help recognition feel more collaborative and inclusive across teams, instead of just leaving someone a noteless gift, you can make them feel special. 

Q: What’s the easiest way to manage employee gifting at EOFY?

A: The easiest approach is to:

• Keep gifts simple and scalable
• Use digital tools
• Avoid overly manual processes
• Choose flexible gifts employees actually want

What does that spell? GroupTogether. It’s the best way to manage group cards, contributions and eGift Cards in one place – which is particularly valuable during the EOFY rush, when everyone already has approximately 46 tabs open.