Entertainment Expenses - what can you claim?

We often get asked what restrictions there are in claiming entertainment expenses.

There are a fair few rules regarding entertainment, and whether you are able to claim the total expense or just 50%.

Our best advice is to always keep invoices or GST receipts, with a note detailing the expense. That way, your bookkeeper can make the best call on the correct portion of expense that's able to be claimed.

Some examples of fully (100%) deductible entertainment expenses are:

  • Food and drink you have whilst you are travelling on business
  • Food and drink you have during promotions that are open to the public, and
  • Morning and afternoon teas for staff held on your business premises