Generally speaking yes. If the gift is designed to:

1.    Promote and / or advertise your business;

2.    Generate goodwill between your business an your clients; and

3.    Encourage future business opportunities.

An interpretative decision by the Australian Taxation Office ID 2004/427, states that a tax payer who is carrying on a business is entitled to a deduction under section 8 -1 of the Income Tax Assessment Act 1997 (ITAA 1997) for a gift made in connection with the above. However, please note that if the 'gift' is determined to be entertainment then according to Tax Determination 94/55 the expense would not be tax deductible. TD 94/55 states that entertainment is:

1. Usually delivered by way of food, drink or recreation.

2. Accommodation or travel in connection with providing entertainment;

3. Furthermore, entertainment may be determined in reference to:

- Timeliness: Entertainment occurs soon after the provision of the item of property;  The usefulness of the property expires after consumption; and It was returned after use.

- Direct Connection: The entertainment should arise from the use of the property.  

According to TD 94/55 the following items would not constitute entertainment: TV sets; computers; gardening equipment; wine; and bottled spirits. 

However, these following items probably would: Providing glasses of champagne; hot meals; theatre tickets; holidays; accommodation; and hired entertainers.