Every year around EOFY, the same question comes up: "Can I claim this?" It's one of the most Googled questions in the corporate gifting space, and it's surprisingly hard to find a straight answer. So here it is — clearly, without the jargon, and with the caveats that matter.
Client Gifts vs Employee Gifts: Why It Matters
The tax treatment of a corporate gift depends on who receives it. The two categories are treated very differently under Australian tax law, and understanding the distinction is the starting point for any EOFY gifting decision.
Gifts to Clients & Third Parties
Gifts given to clients, customers, referral partners, or other third parties (people who are not your employees) are generally tax deductible as a business expense under section 8-1 of the Income Tax Assessment Act 1997 — provided there's a genuine business purpose, such as maintaining a client relationship or generating goodwill.
Fringe Benefits Tax (FBT) does not apply to gifts given to third parties. This is the simpler of the two categories.
Deductible as business expense · No FBT · Keep receipts and note the business purpose
Gifts to Employees
Gifts to employees are subject to FBT — but there's a very useful exemption that most businesses can use. Gifts to employees under $300 (inc. GST) per person qualify for the minor benefits exemption, which means no FBT applies, provided the gifting is infrequent (once or twice a year qualifies). An EOFY gift sits comfortably within this definition.
Staying under the $300 threshold is the key. Parcelle's staff gift range runs from $80 to $250 — meaning most orders fall well within the exempt zone.
Under $300 per employee = no FBT · Must be infrequent · Consult your accountant
The $300 FBT Threshold: What It Means in Practice
The minor benefits exemption is your most useful tool for employee gifting. Here's how it works in plain English:
- The gift must be valued under $300 including GST per employee
- It must be provided infrequently — one gift per year (EOFY) clearly qualifies
- The gift must not be a reciprocal obligation — it should feel like genuine generosity, not a contractual benefit
- Entertainment-style benefits (restaurant meals, event tickets, experiences) are treated differently — the exemption is less straightforward for these
What Types of Corporate Gifts Are Generally Tax Deductible?
Not all gifts are treated equally. The entertainment vs non-entertainment distinction is important — and it's where most people get confused.
| Gift Type | Deductible? | Notes |
|---|---|---|
| Gift hampers (food, wine, gourmet items) | ✓ Generally yes | Non-entertainment. Straightforward business expense for client gifts. |
| Branded merchandise (notebooks, drinkware, apparel) | ✓ Generally yes | Non-entertainment. Particularly strong case where items carry your logo. |
| Luxury gift boxes (home, wellness, gourmet) | ✓ Generally yes | Non-entertainment. Document the business relationship and purpose. |
| Wine and champagne (standalone) | ✓ Generally yes | Non-entertainment when gifted as a physical item, not consumed together. |
| Restaurant meals, event tickets, experiences | ⚠ Different rules | Classified as entertainment. FBT and deductibility rules are more complex — consult your accountant. |
| Gift cards (cash-equivalent) | ⚠ Check carefully | Treated as cash equivalent in some circumstances. Seek specific advice. |
Physical gifts — hampers, branded merchandise, luxury boxes — are consistently the most straightforward category for deductibility. They're non-entertainment, they have a clear business purpose, and they don't raise the same questions that entertainment or cash-equivalent gifts can.
How to Document Your Corporate Gift Expenses
The ATO expects you to be able to demonstrate that a gift had a genuine business purpose. A simple, consistent approach is all that's required.
- Keep your tax invoice — Parcelle provides a full tax invoice for every order, with GST itemised. Store these with your EOFY records.
- Note the recipient and business relationship — a short record noting who received the gift and why (e.g. "client appreciation gift for FY26 relationship") is sufficient.
- Record the business occasion — EOFY, settlement, onboarding. This establishes the business context.
- Document bulk orders — for multi-recipient orders, a list of recipients and their relationship to your business is good practice.
The EOFY Gifting Window: Why June 30 Is the Hard Deadline
To claim a corporate gift as a deduction in the current financial year, it needs to be delivered (or at minimum dispatched and paid for) before June 30. Gifts ordered in July fall into next financial year's accounts.
For Parcelle orders, same-day delivery is available in Sydney metro for orders placed before 12pm AEDT, and Australia-wide orders typically dispatch within 1–2 business days after branding is approved. To be safe — particularly for branded orders requiring artwork sign-off — we recommend ordering by Friday 13 June for guaranteed pre-June 30 delivery.
What Parcelle's Corporate Clients Typically Spend at EOFY
Real Estate Agencies
$89–$150 per settlement client, branded with agency logo. Orders range from 5 to 150+ gifts depending on the settlement calendar. Many agencies set up a corporate account so each settlement is reordered in minutes.
Typical spend: $89–$150 per gift · Free logo branding · Same-day Sydney available
Professional Services (Law, Finance, Consulting)
$120–$200 per key client, often executive-tier selections like The Cellar or premium picnic hampers. Typically 10–50 recipients. Branded ribbon and gift cards are standard inclusions.
Typical spend: $120–$200 per gift · Branded box and card · Australia-wide delivery
Corporate & Enterprise (Staff + Client Gifting)
Two tiers: staff gifts at $80–$120 (under the $300 FBT threshold), client gifts at $100–$200+. Often 50–500+ recipients across multiple offices. Bulk discounts apply from 3+ gifts.
Typical spend: $80–$200 per gift · Bulk discounts available · Multi-address delivery
★★★★★
"We gift all of our top clients at EOFY every year through Parcelle. The branded presentation is exceptional and our clients consistently comment on it. The whole process is seamless — from ordering to delivery."
Ready to gift beautifully this EOFY?
Parcelle's EOFY collection is live now. Free logo branding on every order, no minimums, same-day Sydney delivery. Order by 13 June for guaranteed pre-June 30 delivery.
Shop EOFY Gifts → Explore Corporate Gifting →Planning ahead for Christmas? Read: Luxury Christmas Hampers & Corporate Gifts 2026 →