GST on Direct Mail Campaigns in Australia

For Australian businesses registered for GST, direct mail spend is typically a claimable business expense. This guide covers how GST applies to postcard campaigns, what to look for in your invoices, and how TouchDrop handles tax compliance.

Not tax advice. This guide summarises general information about GST as it typically applies to direct mail costs. Tax treatment depends on your specific circumstances. Consult your accountant or the ATO for advice specific to your business.

Is direct mail spend subject to GST?

In Australia, most goods and services are subject to GST at 10%. Print and marketing services — including postcard printing, design, and platform fees — are typically standard-rated taxable supplies. Postage via Australia Post is also subject to GST for commercial mail services (Print Post).

This means that when you use TouchDrop to send direct mail campaigns, the per-postcard fee you pay includes GST. As a GST-registered business, you can claim this as an input tax credit (ITC) in your BAS, effectively reducing the net cost of your campaign by 10%.

Input tax credits for direct mail

If you're a GST-registered business (annual turnover above $75,000 or voluntary registration), you're entitled to claim input tax credits for GST paid on business purchases — including direct mail campaign costs.

To claim the ITC:

You must have a valid tax invoice from your supplier showing GST separately or stating the total is GST-inclusive
The purchase must be used in the course of carrying on your enterprise
For purchases over $82.50 (inc. GST), you need a valid tax invoice — not just a receipt

How TouchDrop handles GST invoicing

TouchDrop issues tax invoices for all postcard campaign charges. Every invoice includes:

TouchDrop's ABN
The total amount charged including GST
The GST amount shown separately
The date of the invoice and the period covered

These invoices are accessible in your TouchDrop account billing section and can be downloaded as PDFs for your accounting records. They're formatted to comply with ATO tax invoice requirements.

Direct mail as a deductible business expense

Direct mail campaign costs — including print, postage, and platform fees — are generally deductible business expenses for Australian businesses, subject to the usual rules that the expense must be incurred in the course of earning assessable income. Campaign costs are typically deducted in the income year they're incurred.

Keep copies of your TouchDrop invoices and campaign records as part of your business expense documentation in case of an ATO audit.

If you're not registered for GST

Businesses with annual turnover below the $75,000 GST threshold aren't required to register for GST and can't claim input tax credits. For these businesses, the total invoiced amount (including GST) is the full cost of the campaign. GST registration becomes mandatory once turnover crosses the threshold.

AUD invoicing with GST included on every campaign.

Tax invoices available in your TouchDrop billing dashboard.

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