Relevant Tax Laws for the Hospitality Industry
Goods and Services Tax (GST)
If your café or restaurant has an annual turnover of over $75,000, you’re required to register for GST with the Australian Taxation Office (ATO). Once registered, you will need to charge GST on most food and beverage sales. However, certain food items, like basic groceries, may be GST-free. We can help you understand the ins and outs of GST compliance, ensuring your business stays on track with ATO requirements. Learn more about GST and how it affects your business on the ATO website.
Fringe Benefits Tax (FBT)
When meals are provided to staff in your café or restaurant, they may be subject to Fringe Benefits Tax (FBT). However, exemptions and concessions could apply, such as when meals are provided in a staff canteen or during overtime work. At JC Accountant, we can guide you through the specific rules surrounding FBT and help you minimise unnecessary tax liabilities. Our expert team will ensure you’re compliant while maximising your potential savings.
Payroll Tax
Payroll tax is a state-based tax that applies if your total taxable wages exceed a specific threshold. The rate of payroll tax varies by state, so it’s crucial to know the thresholds and rates that apply to your café or restaurant. We’ll ensure you meet your payroll tax obligations and identify any exemptions or concessions available to you. If you’re unsure of the rates or thresholds, let us help clarify everything for you. Contact us to discuss your business’s payroll tax obligations.
Capital Gains Tax (CGT)
When selling assets in your café or restaurant, such as property, equipment, or goodwill, you may be liable for Capital Gains Tax (CGT). Fortunately, small businesses may be eligible for CGT concessions, reducing the amount of tax you owe on the sale. Our accountants can help you understand how CGT applies to your business and guide you through strategies to minimise your tax exposure. Whether you’re selling your restaurant property or retiring assets, we’ll help ensure your sale is tax-efficient.
Depreciation Rules
As a café or restaurant owner, you likely invest in equipment, furniture, and fixtures to keep your business running smoothly. These assets may be eligible for depreciation, meaning you can spread the cost over several years for tax purposes. In some cases, you may be able to claim an immediate write-off if the assets qualify under specific thresholds. At JC Accountant, we’ll work with you to identify the most tax-effective way to manage your business’s assets, ensuring that you’re optimising your deductions and cash flow.
Common Deductions
Cost of Goods Sold (COGS)
The cost of raw ingredients and supplies directly related to food production is a deductible expense for your business. This includes ingredients for dishes, beverages, and any other consumables used in your day-to-day operations. Properly tracking and claiming your COGS is crucial for maximising your tax deductions. Let us assist in managing your expenses to help keep your financials organised and compliant.
Employee Wages and Superannuation
Employee wages, including the associated superannuation contributions, are deductible expenses for your café or restaurant. This includes salaries for your chefs, servers, and other staff members. We’ll help you track these expenses accurately and ensure that your superannuation obligations are met in line with Australian regulations. Our team will also help you navigate employee tax considerations to keep your operations running smoothly.
Utilities and Rent
Your café or restaurant’s utilities, including electricity, water, and gas, as well as the rent for your premises, are essential business expenses that can be claimed as deductions. By accurately recording these costs, we’ll help reduce your taxable income and maximise your deductions, giving you more room to grow your business. Our team can guide you through the claims process and ensure you’re compliant with tax regulations.
Business Insurance
Public liability insurance, workers’ compensation insurance, and property insurance premiums are all deductible for your café or restaurant. These expenses help protect your business from unforeseen circumstances, and we’ll ensure that you’re claiming them correctly for tax purposes. Having the right coverage is vital for managing risk and protecting your assets, and we’re here to guide you every step of the way.
Marketing and Advertising
Marketing and advertising are crucial for attracting customers and growing your business. Whether you’re investing in online ads, print materials, or even a customer loyalty program, these costs are tax-deductible. Our team will ensure your marketing efforts are optimised for both business growth and tax efficiency. From digital strategies to traditional flyers, we’ll help you navigate and maximise your promotional investments.
Why Should You Choose Us For Your Accounting Needs?
When you choose JC. Accountant, you receive all the benefits of working with a boutique accounting practice in Brisbane. We’re able to give you the dedicated focus you need to feel secure and confident in your tax, rental property income, capital gains tax reporting and tax planning needs and requirements.Your accountant will be a seasoned professional, giving you their expertise and professionalism in all things accounting. Plus, as a boutique accounting firm, we offer same-day replies and prompt service, so you can get your tax needs handled as swiftly and efficiently as possible to meet your taxation goals.
Personalised to You
We believe in a tailored approach to every client. By understanding your unique financial situation, we provide customised strategies that align with your goals, ensuring you receive the attention and care you deserve.
Timely Service
In accounting, timing is everything. We prioritise prompt, efficient service so you never miss a critical deadline. From tax submissions to financial advice, we’re here when you need us most.
Experienced Staff
With years of experience across various financial disciplines, our team brings a wealth of knowledge to your accounting needs. Trust in our expertise to handle even the most complex financial scenarios with confidence.
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Tailored Tax Advice
While your individual accounting feels like it should be easy, it’s often not. Contacting our team at JC. Accountant Brisbane will help you think and act strategically when it comes to your individual tax returns, capital gains tax, rental property income and tax planning.
Our job is to help you not only prepare and lodge returns, but also help you optimise your tax strategies, manage your finances more efficiently and to avoid common mistakes. With our help, managing your accounts and tax can be more beneficial and simpler than ever before.
We offer free 15-minute consultations to help you know for sure that we’re the accountants for you. Give us a call or book your personalised consultation online today to get started on a smarter, easier financial future with JC. Accountant.
