Giving gifts to clients may help you win new clients and generate more income for your business, especially at Christmas time. Under Australian Tax Office (ATO) rules, gifts given to a current or former client may be deductible at tax time if they are offered with the intention of generating future assessable income.
Gifts may be classified as “entertainment” and therefore not claimable. Gifts such as a holiday, membership to a club, or tickets to a theatre, sporting or musical event are considered to be “entertainment”. For gifts such as wine, food, hampers, vouchers, etc., these are not considered to be entertainment.
Claire Chang