Employee Christmas gifts are an opportunity to boost morale, retain talent and meet Australian HR benchmarks — when structured correctly they are significantly cheaper than payroll-based employee Christmas Bonuses.
Gift cards are an ideal option: employees value tax free gifts with the choice, and freedom of spend while employers love not paying add-on taxes such as super and payroll tax.
Why staff Christmas gifts matter beyond simple generosity?
– Staff who are rewarded and recognised for their contribution to the success of the business are less likely to be take sick leave, stay loyal, and are up to 15% more productive.
– If Employee Christmas Gifts are included in a regular employee reward and recognition program, the returns can multiply so that the ROI on a well-run program can be more than 3 times the investment.
How gift cards help deliver against HR objectives
– High perceived value: Staff prefer choice; gift cards feel more valuable than a single physical item.
– Flexible budgeting: Easily control per-employee spend to meet HR budget guidance without FBT or other tax impacts.
– Measurable impact: Gift cards provide the instant recognition reward criteria recommended to drive engagement and retention that link directly to benchmark improvements.
Tax effectiveness: FBT and staff Christmas gifts (Australia) save up to 20% on Staff Gifts
Annual Christmas Gifts under $300 per person met the ATO Minor Benefit Exemption: Christmas gifts are then FBT free as they are regarded as irregular & infrequent by the ATO.
· Christmas Gifts provide as Gift Cards in a non-payroll scenario don’t need to attract super contribution or payroll tax.
· Staff Christmas Gifts provide as Gift Cards in a non-payroll scenario don’t attract personal income tax.
Staff Christmas Gifts provide under this scenario can save 20% for the business and be up 30% more effective in the hands of the employee.
By investing in your people, you’re not only reducing costs associated with turnover and absenteeism but also cultivating a high-engagement culture that drives long-term success.
Since MicroGifts cards can be spent anywhere Mastercard is accepted, they provide employees with ultimate freedom of choice to cater to every individual preference.
The flexibility of MicroGifts digital gift cards empowers everyone in your business. This Christmas give the gift that everyone in the company loves!