Are entertainment expenses tax-deductible for sole traders in Australia?

Generally, the answer is **NO**. The ATO does not allow deductions for 'entertainment' expenses, even if they are for business purposes. This includes: - Taking a client out for lunch or coffee. - Tickets to sporting events, concerts, or movies. - Office parties or social functions. These expenses are specifically 'non-deductible' and you cannot claim GST credits for them either. **Exceptions:** - Meals while travelling overnight for business (this is travel, not entertainment). - Providing light refreshments (coffee, tea, biscuits) at a business meeting on your business premises. - Providing food at a seminar or training event.

• Client lunches and coffees are NOT deductible
• Entertainment events are not deductible
• GST credits cannot be claimed on entertainment
• Overnight travel meals ARE allowed (as travel)
• Light office refreshments are an exception