Marketing & tax-deductible expenses
Bridging The Gap Between Marketing & Finance
Marketing often feels like a grey area for healthcare organisations. It’s essential, but its value isn’t always immediately apparent.
Accountants may hesitate to endorse marketing spend because returns can be difficult to quantify. However, when approached strategically, marketing isn’t just an expense, it’s a measurable investment that can often be claimed as a tax-deductible business cost, provided it’s directly related to earning assessable income.
At Tuesday Logic, we provide Fractional CMO services to healthcare organisations, helping them see marketing through a strategic lens where financial sense sits front and centre.
A Client Story: From Caution to Confidence
I once worked with a healthcare client (back in my agency days) whose accountant regularly advised reducing marketing expenditure.
The hesitation wasn’t about the concept of marketing itself – it was about protecting cash flow.
As marketing activity was scaled back, growth began to stall.
A year or so later, when that same accountant launched his own firm, the advice changed to investing more in marketing.
This shift highlights a key truth: accountants aren’t against marketing; they simply need confidence that spending translates into tangible business outcomes.
A Fractional CMO bridges this gap — connecting marketing activities to measurable results and aligning them with financial objectives.
Tax-Deductible Marketing Expenses
The ATO generally allows a deduction for expenses you incur in carrying on your business, so long as the expense is directly related to earning assessable income.
That means many marketing and advertising costs may be deductible – if they’re for business purposes and appropriately documented.
Advertising and Promotion
Expenses incurred to promote your business and attract patients are typically deductible.
Examples include:
- Online advertising (Google ads, social media ads)
- Print, radio, and TV advertising
- Sponsorships that promote your business (industry events, sports teams, conferences)
- Promotional materials such as brochures, business cards or branded merchandise
Website and Digital Presence
You can usually claim costs for creating, running, and maintaining your business website.
Some examples include:
- Website hosting and domain fees
- Routine maintenance, security, and software updates
- Content production for your website (copywriting, photography, video)
However, significant website builds or major redesigns may be treated as capital expenses (in-house software) and depreciated over time rather than claimed immediately. Your accountant can help determine which applies.
Software and Subscriptions
Subscriptions and software used for business marketing are generally deductible.
Some examples include:
- CRM systems (e.g. HubSpot)
- Marketing automation (e.g. Mailchimp)
- Social media management (e.g. Buffer)
- Design tools (e.g. Adobe Creative Cloud and Canva Pro)
- Analytics and reporting tools (e.g. SEMrush)
- Paid stock images, music, or video for business use (e.g Shutterstock or iStock)
Tip: Always keep records and apportion between business and private use.
Why Accountants Sometimes Advise Caution
Accountants focus on cash flow, financial risk, and measurable ROI.
That’s where a Fractional CMO adds real impact: translating marketing activities into measurable results and helping you link them directly to financial performance.
Strategic Advantages of Marketing for Healthcare Organisations
| Advantage | Description |
|---|---|
|
Attract and Retain Patients |
Targeted campaigns reach new patients and nurture existing ones. |
|
Maximise ROI |
Marketing dollars linked to outcomes such as bookings, treatments, and patient lifetime value. |
|
Improve Cash Flow Indirectly |
Deductible marketing expenses reduce taxable income while supporting growth initiatives. |
|
Free Your Team for Strategy |
Automation tools and dashboards reduce manual work, letting your team focus on patient care. |
|
Build Credibility and Trust |
Strategic content marketing, social proof, and clear messaging help patients choose your practice with confidence. |
Trusted Fractional CMO Advisory
Marketing in healthcare shouldn’t feel like a leap of faith or a pit of wasted spend.
Fractional CMOs don’t write copy or install pixels – we partner with you as strategic advisors, bringing clarity to your marketing spend, connecting it to measurable outcomes, and ensuring every dollar works as hard as it can.
That means less guesswork, more accountability, and smarter strategy while keeping your marketing compliant with AHPRA and TGA requirements.
The result?
- Marketing you can measure
- Strategy you can defend
- Space for your team to focus on what they do best, delivering exceptional care while your marketing stays on track and on budget
Where to Find Current Guidance
- ATO – Deductions for other operating expenses
- Deductions for digital product expenses
- Deductions for depreciating assets and capital expenses
Tip: Laws and regulations change, and links can break. If needed, search www.ato.gov.au
FAQs
Are marketing expenses tax-deductible for healthcare organisations in Australia?
Yes, many marketing expenses are tax-deductible for healthcare organisations in Australia, provided they are directly related to generating assessable income.
This includes costs for advertising, digital campaigns, website development, and subscriptions to marketing tools.
Always check with your accountant or the ATO for the latest guidance.
What types of marketing costs can healthcare practices claim as tax deductions?
Healthcare organisations can generally claim deductions for:
- Online advertising (Google Ads, Facebook, LinkedIn)
- Print, radio, and TV promotions
- Sponsorships for business promotion
- Website creation, hosting, and maintenance
- Content production (copywriting, photography, video)
- Software and subscriptions (CRM, email marketing, analytics, design tools)
If it helps your practice attract or retain patients, it’s likely deductible.
Why do accountants sometimes hesitate to approve marketing spend in healthcare?
Accountants often focus on cash flow, financial risk, and measurable ROI. Because marketing results aren’t always immediate, they may be cautious.
Framing marketing as a strategic, measurable investment and showing how it drives patient acquisition and revenue can help get your accountant on board.
Disclaimer:The information in this article is general in nature and does not constitute tax or financial advice. Always consult a registered tax agent or refer to the Australian Tax Office for guidance specific to your circumstances.
Last updated on May 26th, 2026 at 10:54 pm