“Trans-Tasman businesses can now choose whether to stick with virtual meetings, invest in face-to-face events in one central place or a mixture of both,” said Mr Croker.

“Australia’s events industry is already busy promoting attractive conference packages, emphasising the benefits of bringing work teams, customers and suppliers together again after a year of online meetings.

“Now that JobKeeper has finished, many livelihoods now depend directly and indirectly on businesses opening their wallets. Businesses that can afford to do so can do much to help those who work in travel, events and hospitality.”

Mr Croker said in most cases, face-to-face work events will include social activities designed to re-establish important business and workplace connections but there are some tax do’s and don’ts when it comes to entertainment.

“Those arranging work-related functions need to be mindful of the adverse income tax and fringe benefits tax consequences when the agenda is more about having fun than business.

“Event organisers can achieve ‘win-win’ outcomes – a tax deductible business event with no FBT exposure. Protecting GST input tax credit entitlements is also an important business consideration.”

Apart from establishing the objectives of the event, relevant questions your accountant will consider include whether the event involves the provision of food, drink or recreation in an entertainment context, whether the entertainment is incidental to the main purpose, and whether relevant income tax and FBT concessions are available.

“The ATO takes a close interest in extravagant entertainment provided at swanky locations, with pleasant diversions on offer and lots of private time on the agenda to enjoy them,” said Mr Croker.

“Another tax trap some employers fall into is arranging an event that passes the tax tests and then paying for a tacked-on holiday with family members flown-in to share the fun.

“Post COVID get togethers whether in Australia or New Zealand can be planned to achieve lots of good business objectives and allow participants to have some fun, without nasty tax surprises.”