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Running a restaurant is tough work — long hours, tight margins, and constant surprises. But tax time doesn’t have to be one of them. Here are our top tax tips tailored for Australian hospitality and food business owners.
Restaurants have unique tax deductions, and knowing what qualifies is critical. Common claimable items include:
• Food and beverage inventory (cost of goods sold)
• Cleaning and kitchen supplies
• Uniforms and laundry costs (if branded or required)
• Staff training and courses
• POS systems and subscriptions (e.g. Lightspeed, Xero)
• Marketing and design costs (menu updates, signage, digital ads)
These smaller deductions add up quickly, so it pays to track them carefully. Part of what we do for clients at tax time, is ensuring deductions are both compliant and create the best outcome for the business.
Need a new oven, fridge, or fit-out improvements? The instant asset write-off lets eligible businesses immediately deduct the cost of assets up to the current ATO threshold (we’d suggest you speak with the Attune team about this prior to purchasing, as there may be new considerations to include in the purchase). That means you can invest in your business while reducing your taxable income in the same year.
Payroll is one of the biggest compliance hot spots in hospitality. The ATO looks closely at:
• Superannuation contributions (must be paid on time, quarterly)
• PAYG withholding (must match wages and be lodged monthly or quarterly)
Falling behind here can trigger penalties quickly. Automating payroll and super processing, or outsourcing, can save both time and stress. If you’ve been in business a while, you may even benefit from a payroll auditing service to ensure everything you’re doing is as it should be. Speak with the Attune team and we can point you in the right direction for compliance-sake.
Receipts fade fast and no one wants to chase down paperwork during tax time or any other time for that matter. Use tools like Dext or Hubdoc to scan and store receipts digitally. That way, you’re always audit-ready and lodgement time is much smoother.
Restaurants experience natural peaks and slowdowns. Use this seasonality to your tax advantage:
• Make large purchases just before year-end to boost deductions
• Defer income (legally) during busy months if you’re on a cash basis
• Stay ahead of Q4 super obligations before the summer rush
Smart timing can make a big difference in managing cash flow and tax. The Attune team are strategic thinkers, so if you’d like to discuss what a strategy might look like for your business, get in touch and we’ll guide you through it.
Hospitality has its own tax quirks, from tipping rules to staff meals and fringe benefits. A specialist advisor here at Attune Advisory can help you:
• Choose the right structure (sole trader, company, or trust)
• Optimise cash flow and compliance
• Avoid common ATO audit triggers and much more
The right guidance means fewer surprises and more time to focus on what matters most: running a business people love to visit.
With planning, systems, and the right support, you can reduce costs, stay compliant, and focus on growing your restaurant without headaches at every tax lodgement.
So, if you need help with BAS, payroll, or tax planning, let’s talk. Attune Advisory works with restaurateurs and food businesses every day and we’d love to help yours. Get in touch via email here or give us a call on 1300 866 113 – you'll be glad you did.
