Cafe / Coffee Shop Owner

Navigate taxes and GST for small cafes in Australia.

Allowable Expenses

• Inventory — Coffee beans, milk, food, and packaging.
• Rent & Utilities — Premises rent, electricity, and water.
• Equipment — Espresso machines, grinders, and furniture.
• Staff Costs — Wages, superannuation, and workers comp.

Tax Tips

• GST is complex for food; some items are GST-free while others aren't.
• Ensure you pay your staff superannuation on time (quarterly).
• Claim depreciation on expensive kitchen equipment.
• Keep supplier invoices and stock purchase records throughout the year — an accurate cost of goods sold (COGS) calculation significantly reduces your taxable income and is one of the most important deductions for café owners.

Frequently Asked Questions

Is coffee GST-free?

Coffee beans and milk are generally GST-free, but prepared coffee sold in a cafe includes GST.

Can I claim for my coffee machine?

Yes, it is a business asset and can be depreciated.

When is superannuation due for casual cafe staff?

Super guarantee contributions for casual and part-time staff are due on 28 October, 28 January, 28 April, and 28 July each year (quarterly). Missing a super payment deadline triggers the Superannuation Guarantee Charge (SGC), which includes interest and an administration fee — always pay on time.

Can I claim for work-related meals I eat at the cafe?

No. Meals consumed by you personally — even while working at your cafe — are a private expense and not deductible. The ATO is clear that food and drink for personal consumption is not deductible even in a food business context.