Tax Deductions on Corporate Gifts

Corporate gifts, when given for the right reasons, are eligible for some pretty nice tax deductions.


Choosing to gift wellness hampers to your staff and clients is a wonderful gesture that goes beyond mere appreciation. It’s a gift that keeps on giving, enhancing their well-being and, interestingly, your business's financial health. Now, let's talk about how this ties into the tax laws of Australia.

Corporate gifts, when given for the right reasons, are eligible for some pretty nice tax deductions. To qualify, these gifts need to meet certain criteria. Firstly, the gift should have a direct connection to your business and should be given with the intention of generating more business or goodwill. It’s important that these gifts aren't too extravagant or overly expensive, as the Australian Taxation Office (ATO) has specific guidelines on what is considered reasonable.

For instance, if you give a gift to a client as a token of appreciation for their business, it’s considered a deductible expense. However, if the gift is purely personal or excessively lavish, it might not qualify. The good news is that wellness hampers often fall perfectly within these guidelines. They are thoughtful, beneficial, and not excessively costly, making them an ideal choice.

Healthy Hampers specialises in creating corporate gifts that fit these criteria perfectly. Our wellness hampers are carefully curated to include items that promote health and well-being, such as organic snacks, natural skincare products, and wellness accessories. These hampers are not just gifts but a statement of your company’s commitment to health and wellness.

By choosing Healthy Hampers, you're not only giving a thoughtful gift but also making sure that it meets the requirements for tax deductibility. It’s a smart, considerate, and financially savvy choice that benefits both the recipient and your business.

So, the next time you’re thinking about corporate gifts, remember that a wellness hamper from Healthy Hampers is a gift that truly gives back.


What Makes a Corporate Wellness Gift Tax Deductible?

Let’s look at the criteria for tax deductions on corporate gifts according to Australian tax laws. Understanding this can help you make the most out of your corporate gifting strategy while also benefiting your business financially.


The Gift Must Be Business-Related

First off, the primary condition for a gift to be tax-deductible is that it should be directly related to your business. This means that the gift should serve a business purpose, such as fostering goodwill with clients, rewarding employees, or promoting your brand. Personal gifts that don't serve a business purpose won't qualify for tax deductions.


Intention Matters

When you give a corporate gift, it's essential to consider the intention behind it. The Australian Taxation Office (ATO) looks at whether the gift is given with the intention of generating future business. For example, a gift given to a client as a thank-you for their business or to encourage future business dealings is seen as having a business purpose. On the other hand, if you're giving a gift to a friend or family member, even if they are also a client, it might not be deductible because it could be seen as a personal expense.


The Cost Must Stay Fairly Reasonable

The cost of the gift is another important factor. The ATO has guidelines on what is considered reasonable. Extravagant or overly expensive gifts may not be fully deductible. The idea is that the gift should be modest and appropriate for the occasion. While there's no specific dollar limit set by the ATO, common sense and prudence should guide your choice. For instance, a $100 gift basket is more likely to be seen as reasonable compared to a $1,000 watch.


What’s Inside?

Moreover, the nature of the gift itself matters. Some items are more clearly deductible than others. Promotional items such as branded pens, calendars, or even a wellness hamper with your company logo are typically considered deductible because they also serve as marketing tools. However, items or gifts that don't have a clear connection to your business may not qualify.


Keep Records of Your Gifts

Record-keeping is crucial when it comes to claiming tax deductions for corporate gifts. You need to keep detailed records of the gifts you give, including receipts and the purpose of the gift. This documentation is necessary to substantiate your claims if the ATO requests evidence. It's a good practice to log details such as the date of the gift, the recipient, the nature of the gift, and its cost.


Fringe Benefits Tax

When gifting employees, there are additional considerations. Gifts given to employees, such as for birthdays, anniversaries, or as performance rewards, can also be tax-deductible. However, these gifts might be subject to fringe benefits tax (FBT) if they exceed certain thresholds. Gifts that are considered minor benefits (generally valued at less than $300) and infrequent are typically exempt from FBT. But, if you give something more valuable, it might attract FBT, reducing the overall tax benefit.


Not for Entertainment

It's also important to note the difference between gifts and entertainment. While gifts are usually deductible, expenses on entertainment (such as tickets to a concert or a sporting event) are generally not. If you gift a client a bottle of wine, it's deductible. But if you take them out for a lavish dinner, the cost of the dinner might not be.


Healthy Hampers, for example, offers corporate gifts that often meet these criteria perfectly. Their wellness hampers are designed to promote health and well-being, which makes them a thoughtful and appropriate gift for clients and employees alike. Since these hampers are reasonably priced and clearly serve a business purpose, they typically qualify as tax-deductible gifts.


To wrap it up, when considering tax deductions for corporate gifts, make sure the gift is directly related to your business, reasonably priced, and well-documented. Avoid extravagant gifts and personal expenses, and keep clear records to support your claims. By following these guidelines, you can enjoy the benefits of corporate gifting while also making the most of the tax deductions available under Australian law. This thoughtful approach to gifting not only strengthens your business relationships but also contributes positively to your company's financial health.


A Few of Our Best-Selling Corporate Wellness Hampers


Shiraz Snacks & Gluten-Free Hamper

First up is the Shiraz Snacks & Gluten-Free Hamper. This one’s a crowd-pleaser, especially for those who appreciate a good wine and tasty snacks. The star of the show is a bottle of rich Shiraz, famous for its bold and robust flavours. Alongside the Shiraz, you’ll find a selection of gourmet gluten-free snacks. These might include delicious nut mixes, savoury crackers, and sweet treats, all carefully chosen to complement the wine. This hamper is perfect for those who follow a gluten-free diet or just enjoy high-quality, tasty treats. It's a thoughtful way to show appreciation and ensure everyone can indulge without worry.

Shiraz Red Wine Gluten Free Gift


The Chapel Shiraz Hamper

Next, let’s talk about The Chapel Shiraz Hamper. This one is all about elegance and sophistication. It features a premium bottle of Chapel Hill Shiraz, which is known for its deep, complex flavours and smooth finish. Accompanying this exquisite wine are a variety of gourmet delights that might include artisanal chocolates, savoury snacks, and more. This hamper is ideal for clients or employees who enjoy the finer things in life. It’s a way to say “thank you” with a touch of luxury, making it a memorable gift that shows you value their hard work and partnership.

Chapel Hill Shiraz Red Wine Gift


Delightful Vegan Hamper

Lastly, we have the Delightful Vegan Hamper. This is the perfect gift for those who embrace a plant-based lifestyle. It’s packed with a variety of vegan-friendly goodies, which might include things like organic chocolates, savoury snacks, and wholesome treats. Every item in this hamper is carefully selected to be delicious and cruelty-free, ensuring that it’s a gift that aligns with ethical values. This hamper is not only a tasty treat but also a thoughtful gesture that shows you respect and support their lifestyle choices. It’s a great way to include everyone and make sure your gift-giving is inclusive and considerate.

Vegan Snack Assortment


All of these hampers from Healthy Hampers are a fantastic corporate gift that’s also eligible for tax deduction. Each of these offers a tailored experience that shows you care. Whether it’s gluten-free, luxurious, or vegan, these hampers cater to diverse preferences and dietary needs, making your corporate gifting thoughtful and inclusive.


Discounts on Bulk Corporate Gift Orders

Now, when you order corporate gifts from Healthy Hampers, you win twice! Enjoy large discounts on big orders made on Healthy Hampers. Plus, you’ll get a dedicated account manager so you can get customised support for your order.

We’ll walk you through the entire process, including getting corporate branding on all your hamper goodies, all the way up to delivery.


Healthy Hampers is your trusted destination for all corporate gifting needs. We deliver Australia-Wide!