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Ahmadsalman86(Initiate)Initiate
5 May 2026

Dear ATO Community,

I am a sole trader GP (no employees) works as a contractor with a clinic.

I purchase small gifts (around $50 per person) for clinic staff (who are not my employees) on occasions such as Christmas, birthdays, or Nurses Day, with the intention of maintaining and supporting my working relationship with the team as business associates.

Can I claim these gifts as a tax deduction as an expense incurred in gaining or producing my assessable income?

Thank you.

38 views
4 replies
38 views
4 replies

All replies

Taxduck(Taxicorn)Taxicorn
5 May 2026

I doubt they would meet the requirement that business deductions must be directly related to earning your income. See below for what you can claim.

Business deductions | Australian Taxation Office

The provision of a gift to associates is not an expense incurred in order to earn your assessable income.

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deduction of gifts cost- sole trader | ATO Community