Some of the tax that a hospitality business has to deal with.
- Capital gains tax (CGT) when selling a business. Get the right legal structure from the start to keep CGT to a minimum.
- Stamp duty for some leases, .
- Income tax for you, the business and your employees
- GST and BAS. Most food inputs are GST free – no input tax credits there – but almost all sales will attract GST.
- Superannuation. OK, so it’s not really a tax. But it feels like one.
- Payroll Tax at 4.90% once paying more than $550,000 in wages.
Paying cash under the table?
It might seem like a good idea to take and make payments in cash and not declare it to the ATO. Here’s some of the risks:
- The ATO decides to audit the business. No records mean nothing to explain those anomalies.
- Workers’ compensation refuses to pay a claim for an injured employee that’s not on your books.
- Using it to skimp on superannuation payments and PAYG? ATO is back again and they want to make sure those employees get their super.
Tight for cash? Don’t skip on super payments
- No-one likes to be short changed. You know the ATO will chase you to the ends of the earth. They’ll chase even more when they’re entitled to chase for other people’s money – like super contributions for your employees.
- ATO can (and probably will) hit you with a bill to pay up on super, then hit you with a 100% fine. It’s like paying super twice. And the ATO is unforgiving when it comes to employees’ money.
- That’s a very expensive saving. Keep on top of your employees’ super.