Why Promotional Products Should be On Your EOFY List

Author: Steven Cronin  Date Posted:8 June 2023 


The end of the financial year is an important time for businesses and individuals alike, as it provides an opportunity to assess financial matters and take advantage of tax deductions. Most people are familiar with the usual tax write-offs, such as office supplies or travel expenses. There is one often overlooked category that can provide significant benefits - promotional products. The reason for this blog is to help you decide why promotional products should be on your list of end-of-financial-year tax write-offs, highlighting their advantages and the impact on your business's bottom line.


1. Enhancing Business Branding

Promotional products are powerful tools for enhancing business branding. They allow you to put your brand directly into the hands of potential customers, creating lasting impressions and building brand recognition. By incorporating your logo, slogan, or message onto useful and well-designed promotional items, you can effectively increase brand exposure.

From pens and keychains to tote bags and tech gadgets, a wide array of promotional products are available to suit various budgets and target audiences. When considering tax write-offs, investing in promotional products makes sense. They serve a dual purpose: advertising your business and possibly providing a tax benefit.


2. Tax Deductibility of Promotional Products

The Australian Taxation Office (ATO) allows businesses to claim promotional products as tax deductions as long as they are used for promotional purposes. According to the ATO guidelines, for promotional products to be eligible, they should be a:


  1. Direct Promotion: The promotional products must be used to promote your business, goods, or services. They should carry your branding and be distributed to clients, potential customers, or employees.

  2. Reasonable Expense: The cost of the promotional products should be considered appropriate and align with industry standards. Extravagant or excessive expenses may raise concerns during an audit.

  3. Connection to Income Generation: It is important to demonstrate a clear connection between your promotional products and income generation. For example, you can show that distributing promotional items at trade shows or events has led to an increase in sales. In that case, it strengthens your case for claiming them as tax deductions.


By adhering to these guidelines, you can confidently claim promotional products as legitimate tax deductions, reducing your taxable income and potentially saving your business money.


3. Tangible Benefits of Promotional Products

Apart from the tax benefits, promotional products offer several tangible advantages that make them worthy investments. Let's explore some of these benefits:

  1. Increased Brand Recognition: Promotional products serve as constant reminders of your brand, keeping your business top-of-mind among customers. When recipients use or display these items, they inadvertently advertise your brand to others, expanding your reach and potentially generating new leads.

  2. Customer Loyalty and Retention: By offering promotional products to existing customers, you can strengthen their loyalty and encourage repeat business. These items act as tokens of appreciation, fostering positive relationships and creating a sense of goodwill towards your brand.

  3. Cost-Effective Marketing: Compared to traditional advertising channels like television or print media, promotional products offer a cost-effective way to promote your business. They often have a longer lifespan, providing ongoing exposure for months or even years, all while reinforcing your brand message.

  4. Versatility and Customisation: Promotional products come in a wide variety of options, allowing you to choose items that align with your target audience's interests and preferences. Whether it's practical items for everyday use or unique, high-end products for special occasions, you have the flexibility to tailor your promotional strategy.


As you prepare for the end of the financial year, don't overlook the potential tax benefits of incorporating promotional products into your business strategy. By investing in these branded items, you enhance your brand visibility and customer loyalty and enjoy the financial advantages of tax deductions. Remember to consult with your tax advisor or accountant to ensure compliance with ATO guidelines and maximise the benefits. Make promotional products a vital part of your tax write-off strategy and reap the rewards in the coming financial year.



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