Amidst the festive cheer, it’s a perfect time to refresh our memory on what falls under Partially Deductible (50%) and Fully Deductible (100%) entertainment rules.

🎁 Partially Deductible (50%)

Friday Night Delights: Team or client gatherings at the office or pub.

Business Festivities for Restaurant Owners: Providing food and drinks to your staff for Christmas events in your restaurant premises.

Staff Christmas Parties: Hosting your staff Christmas party, whether on or off your business premises.

Corporate Hospitality: Costs of corporate boxes, marquees, launch hire, or tents for events.

Client Celebrations: Treating a client to a Christmas dinner.

🎁 Fully Deductible (100%) Joy

Giving Back: Donating food to a children’s hospital Christmas party.

Team Treats: Offering morning and afternoon tea for your hardworking team.

Global Gatherings: Taking a client out for a Christmas dinner while abroad for business.

International Festivities: Hosting your team Christmas party overseas. Tahiti, anyone?

***Remember: You can claim the full GST on the fully deductible entertainment expenses. For partially deductible expenses, you can only claim part of the GST amount.

Good records are still important!

This is to support your claims for your business entertainment expenses.  Keep invoices/receipts. We suggest writing on the receipt (or attaching a note) to record the purpose of the expense, who the supplier or client was and their relationship to your business.