Advertising & Marketing — Australia Tax Rules

Claim all costs of promoting your business including digital advertising and printed materials.

Claimable: Fully claimable · Tax authority: ATO

ATO Rules

• All advertising costs to promote your Australian business are fully deductible.
• Digital advertising (Google Ads, Meta Ads, Instagram, TikTok, LinkedIn) is claimable.
• Website design, hosting, and domain registration are deductible as business operating costs.
• Printed marketing materials (business cards, flyers, banners, signage) are claimable.
• Sponsorship costs are deductible if they genuinely promote your business — the ATO looks for a commercial purpose.
• GST on advertising costs is claimable on your BAS as an input tax credit (if GST-registered).

Limits

No cap on advertising expenditure — all amounts must be incurred for business promotion purposes.

Worked Example

Emma spends $350/month on Google Ads ($4,200/year), $240/year on hosting and domain, and $180 on business cards. Annual claim: $4,200 + $240 + $180 = $4,620. As she is GST-registered, she also claims the GST credits on her BAS.

Record Keeping

• Keep tax invoices and digital ad platform billing statements
• Retain copies of printed materials as evidence of business promotion
• Document website hosting and domain payment receipts
• Keep records of any sponsorship agreements showing business promotion purpose
• If GST-registered, retain tax invoices for input tax credit claims on BAS

Frequently Asked Questions

Can I claim social media advertising?

Yes. Paid social media advertising (Meta Ads, Google Ads, LinkedIn Ads, TikTok Ads) is fully deductible as a business expense.

Is a new website fully deductible?

Website development costs may be deductible immediately or capitalised depending on the nature and cost. Hosting, domain, and maintenance are always deductible as operating expenses in the year incurred.

Can I claim business card printing?

Yes. Business cards, flyers, brochures, and all printed marketing materials are fully deductible as advertising expenses.

How does GST affect my advertising deduction?

If you are registered for GST, you claim the GST component back as an input tax credit on your BAS. The deduction in your income tax return is then the net (GST-exclusive) amount. If you are not GST-registered, you deduct the full GST-inclusive cost.