Catering Business Accounting: Catering Industry Analysis
Catering business accounting has to cope with uneven demand, large one-off events and staff who work irregular hours. In the video below, our team summarises IBISWorld’s report on catering services in Australia. It covers how the industry has performed, where demand comes from and the main cost pressures.
Tax and compliance issues for caterers
- GST: catered food is usually taxable. The ATO’s guide to taxable food confirms that hot food, food for consumption on the premises and platters arranged for sharing are all taxable.
- Awards: the right award depends on the business. Catering staff of a stand-alone catering business are generally covered by the Hospitality Industry (General) Award. By contrast, catering by a restaurant falls under the Restaurant Industry Award.
- Casual staff: event work often relies on casuals. As a result, rostering, minimum engagements and overtime need tracking for every function.
- Super: the super guarantee rate is 12%. From 1 July 2026, contributions must also reach the fund within 7 business days of payday.
- Deposits: customer deposits for future events need to be recorded correctly for GST and income tax timing.
Using benchmarks in catering business accounting
The ATO publishes small business benchmarks for catering services. These compare costs such as food and labour with turnover. We use them to test pricing and to spot results the ATO may question.
In addition, we cost events individually. A function can look busy and still lose money once staff, transport and wastage are counted. For this reason, event-level costing is one of the first things we set up for new catering clients.
How Quantum House supports caterers
- Bookkeeping, BAS and payroll through our Sydney accounting services.
- Event costing and cash flow forecasting through our outsourced CFO services.
- Advice for restaurants, cafés and venues, set out on our hospitality accountant page.
If you would like catering business accounting that shows which events make money, contact our Sydney team.