Tax Free Employee Benefits

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Infrequent and ad hoc gifts under $300 can be tax free

Ad hoc and infrequent gifts to employees below $300 in value can be treated as minor benefits. Minor benefits have the advantage of not being subject to PAYG, Super, or FBT. By combining a valid justification for a gift (recognition certificate) with a digital gift card below $300 in value, you could qualify for the minor benefits exemption and save tax.

Please refer to the Australian Taxation Office for details, or consult your professional tax adviser.

How tax-free gift cards compare to other benefits and salary payments

Easy Benefits Gift cards subject to
minor benefits
Salary payment Benefits subject
to FBT
Net benefit value given to employee $100.00 $100.00 $100.00
Fringe Benefits Tax
(FBT - 49% to March 2017)
- - $96.08
Superannuation (9.5%)
& Payroll Tax (5.45% NSW)
- $22.15 -
Employee PAYG
(Assume 32.5% personal tax bracket)
- $48.15 -
Total cost to employer $100.00 $170.30 $196.08
Best value! $70.30 more expensive $96.08 more expensive

Your staff can choose from any of the following gift cards:

Recognise your employees...

With a certificate to demonstrate why they are being recognised.

  • You can customise the certificate design and content.

  • Design templates and delivery are FREE.


And reward them...

With a digital gift card to demonstrate how much you appreciate their work or achievement.

  • You choose a gift card value from $20 to $500.

  • Recipients choose where to spend their gift card.

Design your own certificate

  • Choose from one of 24 certificate design and colour scheme combinations

  • Certificate templates include "Certificate of Achievement", "Certificate of Appreciation", "Employee of the Year", or write your own certificate content

+ more

+ more

Two options for delivery

Digital - Instant email delivery

  • Delivered to recipient(s) by email

  • Ideal if recognising staff in a different office/location

Printed - PDF file ready for you to print

  • You'll receive a PDF file with certificate(s) to print out yourself

  • Each printed certificate includes instructions for how the recipient can access their digital eGift Card

  • Ideal if you wish to have a recognition ceremony or presentation in your office

Easy Benefits is free to use

You only pay for the rewards your employees receive.

Monthly Fee $0
Certificate Template $0
Delivery $0

How does Easy Benefits make money if it charges no fees?

We negotiate volume discounts with the gift card merchants, and this small discount on the cost of the gift cards allows us to offer this service to you for free. At the same time our "online only" approach allows us to keep the running costs down.

Understanding tax-free benefits for employees

For an employer, small rewards like gift cards are a great way for you to show appreciation to your employees. These tokens of gratitude can help not only retain, but motivate your staff. As an added bonus, if the value of a card is less than $300, the minor benefits exemption may apply - if the reward is not considered to be a fringe benefit. As a general guide, gifts need to be ad hoc and occasional as opposed to frequent and regular to not be considered a fringe benefit.

Due to this, you won't have to pay any Fringe Benefits Tax, Super or PAYG the same as you would for salaries or or more cumbersome benefits. Additionally, you can claim a tax deduction and GST credit for perks like gift cards that fall under the non-entertainment category. This makes them truly tax free benefits for employees and your business. These employee awards can even extend to your employees' associates or family such as partners and spouses, with the same tax-saving benefits.

In contrast to cash gifts, a gift card will usually fall into the minor benefits exemption, so you're saving on tax while giving your employees broader choice when it comes to spending their gift. Please make sure to check with the ATO or your tax adviser if you have any doubts about taxability.

How Easy Benefits makes employee awards easy

At Easy Benefits, we offer gift cards from a wide variety of retailers such as Coles, JB HiFi, Rebel Sport and the Apple App Store. Our Flexi eGift Cards give your employees extra freedom in choosing the gift card they prefer with their outlet of choice - we keep the process quick and simple. Order online, choose to print PDF copy or opt to have a certificate and gift card delivered digitally. You can customise your own certificate or choose from a certificate template and won't have to pay extra for the digital eGift Card; you only pay for the value of the reward itself.

Got any more questions about how our employee benefits work? Contact us today and we'll be happy to answer any queries you have.

So many reasons to recognise your employees

  • Providing great customer service

  • Completing important training or passing a qualification test

  • Coming up with a great idea to help the business

  • Winning a new client or a new project

  • Staff of the Month, Quarter or Year

  • Show your appreciation for a departing staff member

  • Plus any other reason...

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