Tax deductions and accounting for caterers.
You can generally claim your catering equipment, delivery vehicle, event staffing and insurance against your income, provided each one relates to earning it and you keep the records to support it. This guide covers what caterers typically claim, how GST works on deposits taken well ahead of an event, and how we handle the lumpy, seasonal income most catering businesses run on. We're Brisbane based and work with caterers right across Australia.
Updated July 2026 · Reviewed by the LINK Advisors team
What caterers can claim.
Ordered by typical value. Every claim still has to pass the ATO's tests: you paid for it, it relates to earning your income, and you can show a record.
Catering equipment and serving ware
Chafing dishes, mobile cooking equipment, serving platters and transport containers are generally deductible, either claimed outright or depreciated depending on the cost and the instant asset write-off rules current at the time - check the current threshold with us.
Delivery and transport vehicle
Your van or vehicle used to transport food, equipment and staff to events is generally deductible for its business-use portion under the logbook or cents-per-kilometre method.
Food and beverage stock
Ingredients bought for each event are generally deductible as a cost of goods sold, though quantities are harder to predict precisely than in a fixed venue with steady daily trade.
Casual event staff wages
Wages and super for casual staff engaged for specific events are generally deductible, and clean records against each event make it easy to see true labour cost per function.
Public liability insurance
Premiums for public liability cover, which matters more for caterers working across other people's venues and private properties than for a fixed-site business, are generally deductible.
Event site fees and equipment hire
Venue hire, marquee and additional equipment hired for a specific function are generally deductible as a direct cost of that job.
Packaging and disposables
Takeaway packaging, disposable serving items and similar consumables used across events are generally deductible.
Food safety and off-site handling compliance
Costs of maintaining your food safety certification and compliant off-site food handling practices are generally deductible.
Marketing and portfolio costs
Photography of past events, website costs and advertising used to win new bookings are generally deductible.
GST and BAS, done right.
Food you prepare and serve at an event is a taxable supply, the same as a restaurant meal, regardless of what the raw ingredients were classified as when you bought them. This applies whether you're catering a wedding, a corporate lunch or a private party.
Catering bookings are often made and deposited on months ahead of the actual event, which raises a genuine question about when GST applies to that deposit versus the final invoice. Getting this timing right in Xero means your BAS reflects reality rather than either overstating or delaying GST you actually owe.
If you supply catering interstate or your client is based overseas for a specific event, the GST treatment can shift depending on where the event and the supply actually take place. Worth checking with us on anything outside a standard local booking.
The right structure for the work.
Catering income is often lumpy across the year, wedding season and the corporate events calendar don't spread evenly, which makes cashflow planning at least as important as the entity you trade through. Solo or small-team caterers often do fine as sole traders early on. Once you're regularly subcontracting other chefs or casual staff for bigger events, or carrying real equipment and vehicle value, a company structure is worth a proper look.
Run the work, we run the numbers.
Booking and quoting software that costs each event per head, connected to Xero, gives you a much clearer picture of which functions were actually profitable once staff, hire and ingredient costs are counted, rather than just a lump sum in the bank. We set this up so your event-by-event margins are visible, not buried in a single monthly total.
Frequently asked questions.
Can I claim equipment I use to cater off-site?
Yes, generally. Chafing dishes, transport containers and mobile cooking equipment used to cater events away from a fixed kitchen are deductible, either claimed outright or depreciated depending on their cost.
How does GST work on a wedding deposit taken months in advance?
GST timing generally depends on when the deposit is treated as consideration for the supply, which needs care when bookings are made well ahead of the event itself. We set your invoicing and Xero workflow up so deposits don't create a surprise at BAS time.
My income is lumpy across the year. How do you help with that?
Cashflow forecasting that expects the quiet months, alongside a tax provision account funded during your busy season, keeps a strong wedding or events quarter from turning into a rough BAS surprise a few months later.
Can I claim my delivery van?
Generally yes, for the business-use portion under the logbook or cents-per-kilometre method, in the same way as most other trade and hospitality vehicles used to move stock and equipment to jobs.
Should a home-based caterer be a sole trader?
Often yes, particularly while you're working solo or with casual help on event days. It's worth revisiting once you're regularly engaging other chefs or staff, or your equipment and vehicle investment has grown enough that a company's risk separation earns its keep.
Talk to an accountant who knows caterer businesses.
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