Food trucks are one of Australia's fastest-growing small business categories. But between cash sales, multiple payment terminals, council permits across different areas, and perishable inventory, the bookkeeping can get messy fast. Here's how to keep your books clean and your tax bill low.
1. Tracking Revenue Across Multiple Channels
Food trucks typically take payments via:
- Square, Tyro, or Zeller EFTPOS terminals — reconcile daily settlements to your bank account in Xero.
- Cash — record all cash sales via your POS system. The ATO specifically targets cash-intensive businesses for audits.
- UberEats, DoorDash, Menulog — if you list on delivery platforms, reconcile their weekly payouts (minus commissions) as separate revenue streams.
Set up separate revenue accounts in Xero for each channel so you can see which is most profitable.
2. GST on Food — The Tricky Rules
Not all food sales attract GST. The general rule:
- Hot food (ready to eat): GST applies — burgers, coffee, fries, tacos = 10% GST.
- Cold food (takeaway, not heated): Generally GST-free — cold sandwiches, salads, bottled water.
- Beverages: Soft drinks and juices = GST. Plain milk = GST-free.
Most food truck sales are hot prepared food, so GST applies to the majority of your revenue. Ensure your POS system applies the correct GST rate to each item.
3. Inventory and Cost of Goods Sold
- Track your COGS weekly — food cost should be 25–35% of revenue. Above 35%, you're either pricing too low or wasting too much.
- Spoilage and waste: Record food thrown away as a separate expense category. This is deductible and helps you identify waste patterns.
- Supplier invoices: Get every supplier on electronic invoicing. Photographing paper invoices from the markets is better than nothing.
4. Key Tax Deductions
- Vehicle costs: The truck itself (depreciation or lease payments), fuel, registration, insurance, servicing.
- Council permits and market fees: Site fees, food handler certificates, council registration.
- Equipment: Grills, fryers, refrigeration, generator, POS hardware — instant write-off under $20k.
- Fit-out and branding: Vehicle wrap, signage, menu boards (depreciate if over threshold).
- Food safety training: Food handler certificates, allergen management courses.
- Packaging: Containers, napkins, cutlery, bags — all deductible consumables.
5. Cash Flow Management
Food trucks are seasonal — festivals and markets peak in spring/summer, and January can be dead. Tips:
- Build a cash reserve during peak season to cover winter months.
- Track your revenue per event/location — drop unprofitable spots.
- Set aside GST and tax weekly into a separate account.
Key Takeaways
- Reconcile EFTPOS, cash, and delivery platform revenue separately.
- Hot prepared food attracts GST; cold takeaway food is generally GST-free.
- Keep food costs at 25–35% of revenue — track waste separately.
- Claim the truck, equipment, permits, packaging, and fit-out as deductions.
- Build a cash reserve during peak season for quieter months.