EOFY 2023: What Can I Claim on Tax When It Comes to Marketing Expenses?

With the End of the Financial Year (EOFY) fast approaching, it’s time for tax planning. As a business owner, the money you spend on marketing is a business expense, which means it is tax deductible. Marketing is included in your company’s expenses, and you can claim tax deductions on it, especially if you are running a small business. But how does it work, and what can you claim on tax with a marketing expense? Here’s a detailed guide from Clixpert to help you out. 

Eligibility for Tax Deductions

According to the ATO (Australian Tax Office), there is a long list of Expenses You Can Claim Tax Deductions for Your Business, including marketing expenses. The best way to make the most out of it is by knowing what you can make claims for instead of just making all of these tax deduction claims, only to realise that some of them will not be counted. The following are things you can make tax deduction claims on when it comes to marketing expenses.

Social Media

Social media can take a chunk out of your capital because of how complex it is. Social media campaigns can get quite pricey if you do not have a budget. Fortunately, you can make tax deduction claims on this expense no matter how many social media campaigns you have in place. Take note of everything you paid and any paperwork that comes with it so you can show the exact amount you spent on social media marketing.

Consultation

If you hired a marketing consultant to help create a marketing strategy you need, you could also include this in your ledger. The tax office accepts tax deduction claims on expenses paid to market consultants or agencies just for the sole purpose of consultation. Make sure you include this expense as well when filing your taxes.

Organic Strategies

There are many organic strategies you can include in your company’s overall marketing strategy. For instance, you can include search engine optimization to organically attract more clients through lead generation and the like. 

Of course, strategies like these require careful planning and specific software, so you will hire a specialist to implement the strategy for you. Include this expense as in your tax claims.

Mixed Media

Any part of your marketing strategy that includes media, whether print or otherwise, should also be included in the tax claims. Expenses that involve newspaper ads, flyers, billboard ads, magazine spreads, and other print media can be included. 

Moreover, you can also include the capital you spent on marketing through television and radio. The claim only applies directly to the ad, and it does not include miscellaneous fees such as the expense for gas for the vehicle used to place signage showcasing your brand.

Digital Display

According to the tax office, any digital display advertising you pay for can also be included in your list of tax claims because you can get tax deductions out of it. These advertising expenses are eligible for tax deductions from the digital signages in your store to digital displays outside of your main office.

Domain and Website

With the necessity of online marketing, a business can struggle to survive if you do not have a website customers can visit to search for your products and services. You will need a working domain for your website, especially with online shopping becoming more and more popular.

On top of that, there will be maintenance fees to keep your website and domain going, and it will be an additional expense. Make sure that you add these expenses to your tax claims since these are included in the items you can get tax deductions from according to the tax office.

Directory Listing

You also have fees for directory listings, and these expenses are considered marketing expenses that you can make tax claims for. Please include in the ledger the exact amount you paid for the listing fees so you can get tax deductions out of them.

These Tax Deductions are legal. You are just being diligent and claiming what you rightfully can. It is part of the law, so why not make the most of it? Ensure to keep all the records of your Marketing Expenses, including the paperwork that comes with it, such as receipts, invoices, contracts, and the like, so you have something to show if there are questions about your tax claims. 

Clixpert has been in the Digital Marketing industry for over a decade. If you need a dynamic, driven and highly skilled team of experts to handle all your Digital Marketing needs, then get in touch with us today on 1300 254 973 to know about our services and attractive packages.