Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- The renewal, permit or membership is used in operating the existing business.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- An initial acquisition or enduring right can be capital in nature and must be considered separately.
- Fees for golf, social, sporting, dining or another recreational club membership or right to use its facilities are not deductible, even when there is a business connection.
- An airport lounge membership is not automatically a recreational-club fee and must be assessed under its own business-use facts.
- Entertainment expenses can also be denied under the entertainment rules.
How the amount is worked out
Claim the deductible recurring business-use portion, subject to capital and prepayment rules.
Records the ATO expects
- Invoice
- Registration or permit
- Business connection
Where this rule comes from
Primary source: ATO TD 2016/15 recreational club membership (TD 2016/15). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO business income and deductions (Updated 1 June 2023)