As we are now approaching the end of the 2024 calendar year, you might be thinking about rewarding some of your key contacts outside your business who helped you during the year. 

To maximise your tax deductions, you need to identify what is an “Entertainment” gift and what is a “Non-Entertainment” gift. 

You want the gift to be “Non-Entertainment” as it’s a normal tax deduction and you can claim the GST credits, just like any normal business expense. 

However “Entertainment” gifts are not tax deductible and you have no entitlement to a GST credit. 

Some examples of “Entertainment” gifts are: Theatre tickets, movie tickets, sporting events tickets, hired entertainers, flights and holiday accommodation, etc 

Some examples of “Non-Entertainment” gifts are: Flowers, electrical goods; e.g. TV, bottled spirits and beer, Christmas hampers, gift vouchers, etc 

To maximise your tax deductions, try to find “Non-Entertainment” gifts for your key contacts. If you are unsure about a particular item, please feel free to send a message.