The provision of a Christmas party to an employee may be a minor benefit and exempt from fringe benefits tax (FBT) if the cost of the party is less than $300 per employee and certain conditions are met.
The benefit provided to an associate of the employee (ie partners and families if they attend) may also be a minor benefit and exempt if the cost of the party for each associate of an employee is less than $300.
Furthermore the minor benefits threshold of less than $300 applies to each benefit provided, not to the total value of all associated benefits which means you may be able to provide a gift to an employee at the Christmas party without having to pay FBT as long as each benefit provided falls under the $300 threshold.
However be aware that the cost of providing a Christmas party is only deductable to the extent it is subject to FBT. In other words if you fall into the above exemptions you cannot claim the party as an income tax deduction.