Essential Tax Time Tips for Hospitality Businesses in 2024

Jun 25, 2024

Essential Tax Time Tips for Hospitality Businesses in 2024

Tax time is just around the corner, and it’s time to get your records for your 2023-24 tax return. The Australian Tax Office (ATO) is here to help with a range of tools and services to make it easier. Here are some essential tips to keep in mind this year.

The 3 Golden Rules for Claiming Deductions

You can claim a deduction for most business expenses if they are directly related to earning your income. Remember these three golden rules:

  1. The expense must be for your business – not for private use.
  2. If the expense is mixed-use, only claim the business portion.
  3. You must have records to prove it.

For more info on business tax deductions, visit ato.gov.au/businessdeductions.

Running a Home-Based Business?

If you run your business from home with a dedicated workspace, you may be able to claim occupancy and running expenses. For the 2023-24 income year, you can use the fixed rate method (67 cents per hour) for expenses like electricity, internet, and phone. Keep records for at least five years to substantiate your claims.

Learn more at ato.gov.au/homebasedbusiness.

PAYG Instalments

New to business? Consider PAYG instalments to prepay tax on your business income and avoid a large tax bill at the end. Visit ato.gov.au/PAYGI to learn how.

Small Business Concessions

Check if you’re eligible for small business concessions, like simplified depreciation rules or the small business income tax offset. These can reduce your tax bill and save you time.

Find out more at ato.gov.au/sbconcessions.

Motor Vehicle Expenses

Claim tax deductions for motor vehicle expenses used in running your business. Depending on your business structure and vehicle type, you might use the cents-per-kilometre method (85 cents for 2023-24) or the logbook method.

Learn how at ato.gov.au/motorvehicleexpenses.

Employer Obligations

Employers, stay on top of your EOFY tax and super obligations. Key dates to remember:

  • FBT return and payment due by 25 June (if lodged by a tax professional).
  • PAYG withholding updates from 1 July.
  • SG rate increase to 11.5% from 1 July.
  • STP finalisation declarations by 14 July.

Good records and payroll governance are essential. More info at ato.gov.au/sbrecordkeeping.

Digital Tools and Record Keeping

A solid record-keeping system helps manage your tax and super obligations year-round. Use the ATO’s record keeping evaluation tool and set up myGovID and RAM for online services.

For more info, visit ato.gov.au/OSB.

Strengthen Your Small Business

Improve your financial and business knowledge with the ATO’s free online learning platform. Courses are interactive and tailored to small business needs.

Explore more at Essentials to strengthen your small business.

Ask For Help If You Need It

Lodge and pay on time, but if you’re struggling, contact your registered tax professional or visit ato.gov.au/helpwithpaying for support options.

Stay on top of your tax game this year with these tips and make the most of the resources available from the ATO.


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