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ZJL(Enthusiast)Enthusiast
29 Jan 2025

Wondering if someone can please help me? I have recently entered the wine industry and our Director frequently hosts trade lunches and dinners with account representatives that include meals and obviously, wine, but are hosted at restaurants rather than on-premise. Attendees are either existing or prospective accounts/clients. Am I correct in assuming that these events are not tax-deducible, even though they are directly related to efforts to create new, or maintain existing, business/clients? Does this change if the food and wine is provided on our business premises? Thanks in advance for your guidance and/or reference to ATO publications around this.

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Taxduck(Taxicorn)Taxicorn
29 Jan 2025

Appears to be entertainment expenses. Not claimable.

Business deductions | Australian Taxation Office

Light refreshments provided to clients in business premises are generally tax deductible.

Is food/drink provided to employee/client on premises tax deductible for sole trader? | ATO Community

ZJL(Enthusiast)Enthusiast
4 Feb 2025

Hi @Taxduck,

Thank you for your response. Whilst in any other business I have worked in, the nature of such an expense would definitely be deemed entertainment, how does this work in the wine industry? We invite potential clients to such events (these might be hosted in neutral premises, trade fairs, restaurants etc.) to introduce them to our wines (our 'products') and promote them in the hope of earning their custom. Is there any instance in which such expenses would actually be considered marketing expenses as opposed to entertainment? It's definitely tricky given that our product is alcohol! Thanks in advance for any guidance you might be able to offer.

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Are business trade lunches and dinners tax deductible? | ATO Community