What is the Tax Rate for a Restaurant in Australia?

What is the Tax Rate For A Restaurant In Australia

Do you own a food restaurant in Australia? Or are you planning to establish one? Whatever your current situation is, you need a sound knowledge of restaurant taxes in both cases. So, do you know the tax rate for a restaurant in Australia?

Probably not; that’s why you are here!

As an entrepreneur or food business aspirant, you might know that every individual and business in Australia must pay their fair share of tax. Otherwise, the ATO may penalise them (that’s even worse than sharing your profits). So, let’s dive deep into this blog to determine how much a restaurant has to pay in taxes.

What is the Tax Rate for a Restaurateur?

Restaurants owners in Australia are required to pay the Australian Taxation Office a certain amount of tax, depending on their annual income & profits, as well as other factors, including their ownership types like partnership, sole trader, and company.

Also, restaurants charge GST on the services and goods they offer customers, which is 10% of the total price. Then, they remit GST to the ATO regularly. To ensure accurate filing of income taxes, restaurant owners must maintain financial records and track their expenses.

Tax Deductions Restaurant Owners Can Claim

Running a business in Australia is not easy; you have to work hard 24*7, and when the tax season comes, ATO takes a significant chunk of money from your pockets. But there’s a hack, which is tax deductions. Here’s the list of tax deductions you can claim as a restaurateur: –

Marketing Expenses

Marketing doesn’t come cheap, but making your restaurant stand out from the crowd is essential. You must use various marketing tactics and channels, including Facebook, Yelp

promotional, and Google Ads. And if you are doing so for your restaurant in Australia, do not forget to claim deductions incurred for marketing your business.

Staffing Costs

No restaurant can run without its staff, and when you recruit people for hospitality, you pay them well. You guessed it! Claiming tax deductions for staff salaries is possible, as well as you can claim tax deductions for the cost of food provided to employees during shift changes.


Preparing delicious food that will make you stand out is only possible with equipment, and commercial food cooking is undoubtedly expensive. So, do not forget to claim deductions for the cost you paid to buy equipment for your restaurant, including ovens, dishwashers, stoves, fryers, etc.

Food Costs

You need the freshest and finest ingredients to cook flavourful and healthy dishes for your customers in your restaurant, and you pay the cost for them. So, why not claim deductions for them? Write off the ingredients and cost to ensure maximum income tax returns!

Legal Fees

Establishing a food business in Australia (i.e., a restaurant) requires much paperwork. You need to pay a significant amount to the authorities and other people involved in the process. All those costs can be deducted from a restauranteur’s taxes!

Final Verdict

As a restaurant owner in Australia, you are required to pay your fair share of taxes to ensure growth and smooth functioning across the country. The taxes a restauranteur has to pay the ATO and the tax deductions one can claim is mentioned in this blog. Ensure to keep financial records, pay your taxes on time and claim deductions; otherwise, you may get into trouble.

However, if you struggle to pay your taxes or file your income tax returns as a restaurant owner in Australia, you can get professional assistance from the expert tax agents of KPG Taxation. Contact us today to book a consultation with our experienced professionals!

Consulting with KPG Taxation

Focus On Growing Your Business, Leave The Accounting On Us!

  • Income Tax : File your taxes & get the best claims & returns.
  • Accountancy : Hire expert accountants to manage your transactions.
  • Bookkeeping : Let us handle your record books and expense reports.
  • Business Advisory : From company set-up to payroll, we handle it all.