12/12/2025 • 16 min read
EOFY Parties 2025: Plan, Stash Phone, Join In
EOFY Parties 2025: Plan, Stash Phone, Join In
“Have a plan, stash the phone and join the party people!” is best interpreted (from an Australian accounting practice perspective) as a practical EOFY entertainment and governance rule: plan the event and its tax treatment in advance, avoid creating risky evidence trails (photos/posts/real-time commentary) that can undermine substantiation and FBT positions, and then run the function in a compliant, staff-positive way. Done correctly, staff events can be structured to legitimately manage Fringe Benefits Tax (FBT), GST and income tax deductions—while avoiding the common traps the ATO focuses on in employer entertainment reviews.
What does “Have a plan, stash the phone and join the party people!” mean for accountants?
It means controls first, celebration second. In practice, it is a three-part compliance and workflow approach for staff entertainment:
- Have a plan: Decide whether the function is “staff social” or “client entertainment,” choose the FBT valuation/tax approach, set budgets, and define substantiation rules before spending occurs.
- Stash the phone: Reduce evidence risk and privacy issues by preventing ad hoc, inconsistent “documentation” that later conflicts with the tax position (for example, posts showing clients present when the file says “staff only”).
- Join the party people: Once governance is set, run the event confidently without scrambling later to reconstruct attendee lists and purpose.
For Australian practices, this is also a productivity play: entertainment is often miscoded, GST-treated inconsistently, and reconciled late. AI accounting software Australia solutions that automate bank reconciliation and working papers reduce this rework materially.
Why does planning matter for FBT, deductions and GST in Australia?
Planning matters because “entertainment” is one of the most error-prone expense categories and is a recurring ATO focus area in reviews. The tax outcome depends on facts: who attended, where it happened, what was provided, and why.
From an Australian tax law standpoint, consideration must be given to:
- Fringe Benefits Tax Assessment Act 1986 (FBTAA): governs when providing entertainment to employees or associates triggers FBT, and when exemptions apply.
- Income Tax Assessment Act 1997 (ITAA 1997): governs deductibility (general deduction rules) and interacts with FBT outcomes for entertainment.
- A New Tax System (Goods and Services Tax) Act 1999 (GST Act): governs GST credits; entertainment and FBT treatment can affect entitlement.
- ATO guidance on “entertainment” and FBT: the ATO’s published views and examples are used extensively in audit activity and objections.
In short: the same party can be (a) exempt from FBT, (b) subject to FBT, or (c) partly deductible/non-deductible—depending on structure and evidence.
When is a staff party exempt from FBT (and when is it not)?
A staff party may be exempt from FBT where it qualifies as a minor benefit and is provided on an “infrequent and irregular” basis, or where other specific exemptions apply (depending on the employer type and circumstances). However, common triggers for FBT include providing meal entertainment, alcohol, taxi travel in certain contexts, or extending benefits to associates.
Key compliance realities accountants should apply:
- The exemption analysis is fact-specific and must be documented contemporaneously.
- Staff-only versus clients/suppliers attending can change the analysis materially.
- Associates (partners/spouses) can increase FBT exposure.
- Gifts, venue hire, travel and accommodation can each have different treatment.
Practical evidence you should have on file:
- Event description and purpose (staff social vs client entertainment).
- Attendee list by category (employees, associates, clients).
- Tax invoices showing GST and what was supplied.
- Internal approval and budget.
- Notes on frequency (how often similar benefits occur).
Disclaimer: FBT is highly fact-dependent. It is advisable to consult a qualified tax professional for advice tailored to the employer and the specific event structure.
How does “stashing the phone” reduce tax risk and compliance headaches?
It reduces “evidence contradiction risk” and privacy issues. The ATO does not generally rely on social media as primary evidence in routine cases, but in disputes and reviews, inconsistent contemporaneous evidence can be damaging—especially if your file says “employees only” and public posts show clients or a promotional purpose.
From a governance and professional standards perspective, “stash the phone” supports:
- Accurate substantiation: you want a controlled attendee list and purpose statement, not ad hoc posts.
- Privacy compliance: avoid publishing staff images without consent, particularly where HR issues arise.
- Reduced rework: less time reconciling contradictory narratives during FBT year-end.
A pragmatic policy many employers adopt:
- Allow photos, but restrict public posting and prohibit real-time posting that identifies clients or business relationships.
- Require one nominated organiser to capture “compliance evidence” (attendee categories, invoices), separate from social posting.
What is the best-practice planning checklist for an EOFY party (Australian tax)?
The best practice is to decide the tax approach before committing to suppliers, then collect evidence as you go.
- Define the event type
- Decide the cost and attendee boundaries
- Confirm invoicing requirements
- Set substantiation process
- Decide coding rules for the ledger
- Pre-brief payroll/FBT owner
What are the common ATO audit triggers for entertainment and staff functions?
ATO review activity commonly escalates where records are weak or inconsistent, or where amounts are material relative to business size. Practical triggers include:
- High “entertainment” spend with no clear breakdown of staff vs clients.
- No attendee lists, or lists prepared long after the event.
- Invoices that are ambiguous (for example, “function package” with no detail).
- Expense claims for alcohol-heavy events without a consistent policy.
- Mixed-purpose events coded entirely as “staff amenities” without evidence.
- Repeated benefits suggesting the event is not “infrequent and irregular.”
How should an accounting practice handle real-world scenarios?
The correct approach is to map the facts to the rules and then lock in consistent bookkeeping evidence.
Scenario 1: Staff-only EOFY dinner at a restaurant
Outcome is often simpler where it is genuinely staff-only and properly documented.- Evidence to keep:
Workflow note: code consistently and avoid blending with client entertainment GLs.
Scenario 2: EOFY “staff party” where clients were invited
This is a classic risk area because the file narrative often does not match reality.- Compliance approach:
Scenario 3: Gifts and hampers given at the party
Gifts can have different tax outcomes than meal entertainment.- Evidence to keep:
Scenario 4: Taxi/ride-share paid for staff after the event
Transport can be a separate benefit with its own analysis.- Evidence to keep:
How does MyLedger compare with Xero, MYOB and QuickBooks for party/entertainment compliance workflows?
MyLedger is typically the stronger option for Australian practices where the core pain is not “posting an expense,” but controlling coding, substantiation, and year-end working papers—especially across many clients.
Key differences relevant to entertainment, FBT and EOFY functions:
- Reconciliation speed:
- Automation level (AI-powered reconciliation):
- Working papers automation:
- ATO integration accounting software depth:
- Pricing model (practice economics):
- Target market fit:
What ROI should a practice expect from automating entertainment coding and year-end packs?
The ROI is primarily time saved on reconciliation, substantiation chasing, and working paper assembly.
A realistic practice example (consistent with common MyLedger ROI modelling):
- Practice size: 50 active bookkeeping/compliance clients
- Time saved: ~125 hours/month (driven by 85% overall processing time reduction and 90% faster reconciliation)
- Imputed value: $18,750/month at $150/hour
- Software cost comparison:
In practice, entertainment is a “small” category, but it is disproportionately time-consuming at year-end because it is frequently miscoded and poorly evidenced. The efficiency gain is realised when the entire workflow is automated, not when a single expense is posted.
How do you implement a “party people” policy without undermining culture?
It should be framed as “protecting staff and the business,” not policing fun. The strongest policy settings are simple and enforceable:
- One organiser owns compliance capture (invoices, attendee categories, approvals).
- Staff can take photos, but public posting is restricted and client identification is prohibited.
- Clear boundaries for who is invited (employees only vs mixed).
- A standard chart-of-accounts mapping for entertainment across all clients (for practices managing multiple entities).
- A consistent end-to-end process from bank feed to FBT working papers.
Next Steps: How Fedix can help your practice
Fedix helps Australian accounting practices operationalise “have a plan” by turning messy bank and invoice evidence into a reconciled, report-ready file in minutes.
If you want to reduce EOFY and FBT clean-up work:
- Use MyLedger AutoRecon for automated bank reconciliation (10–15 minutes vs 3–4 hours).
- Apply practice-wide coding templates and mapping rules for entertainment categories.
- Keep evidence attached and consistent so year-end working papers are faster to finalise.
- Leverage ATO integration features to support compliance workflows and due date visibility.
Learn more at home.fedix.ai and consider trialling MyLedger (currently free in beta) for an EOFY workflow pilot across a small client cohort.
Conclusion
“Have a plan, stash the phone and join the party people!” is an effective compliance principle for Australian staff functions: pre-decide the tax posture, capture the right evidence, minimise contradictory documentation risk, and then run the event confidently. For accounting practices, the biggest win is eliminating the downstream clean-up—achievable through disciplined processes and automation, particularly with MyLedger by Fedix for AI-powered reconciliation, automated working papers, and ATO-integrated workflows.
Frequently Asked Questions
Q: Is a staff Christmas or EOFY party tax deductible in Australia?
It depends on the facts and the interaction with FBT rules. Where entertainment is provided, deductibility and GST credits can be restricted or altered depending on whether FBT applies and the nature of the benefit; the correct approach is to document purpose, attendees, and costs and apply the relevant ATO guidance and legislation.Q: Do we need an attendee list for an EOFY function?
Yes, an attendee list (at least by category: employees, associates, clients) is a best-practice control and is often critical evidence for FBT and GST positions. Lack of contemporaneous records is a common reason files unravel during year-end reviews.Q: Can staff post party photos on social media?
They can, but from a governance and risk perspective it is prudent to restrict public posting that identifies clients or business relationships, or that contradicts the documented purpose and attendee profile used for FBT analysis. A short policy reduces tax, privacy, and HR risk.Q: Is MyLedger a good Xero alternative for Australian practices managing many clients?
Yes. MyLedger is positioned as an AI accounting software Australia platform built for practices, delivering automated bank reconciliation (10–15 minutes vs 3–4 hours), automated working papers, and deeper ATO integration accounting software capabilities than general small business ledgers.Q: How do we reduce EOFY entertainment coding errors across all clients?
Standardise categories, enforce consistent GST/FBT coding rules, and automate reconciliation and evidence capture. Practices using MyLedger can apply mapping rules, bulk operations and automated working papers to reduce rework and improve consistency at scale.Disclaimer: This article is general information only and does not constitute tax advice. Tax laws and ATO guidance change over time and outcomes depend on specific facts. Professional advice should be obtained for your circumstances.