Audience: Pizza shop owners, takeaway operators and small hospitality businesses in Australia.
Scope note: This guide is written for owners and operators. If you run a company or employ staff, your bookkeeping, GST and payroll setup also matter.
Intro
If you run a pizza shop, many of your claimable costs come from repeatable day-to-day business spending: ingredients, packaging, rent, software, equipment and delivery overhead. The key is separating business spending from private spending and keeping clean records. The ATO expects you to claim only the business-use portion of mixed expenses like phones, vehicles and home internet.
Common deductions
- Ingredients and stock you buy to produce food for sale, including cheese, dough ingredients, toppings, sauces and drinks.
- Packaging and consumables such as pizza boxes, napkins, takeaway bags, gloves, cleaning products and receipt rolls.
- Rent, utilities and business insurance for the shop premises.
- Merchant fees, bookkeeping software, POS subscriptions and online ordering software.
- Wages, super contributions and contractor payments that are correctly recorded and connected to the business.
- Repairs and maintenance for business equipment such as fridges, prep benches and ovens.
Industry-specific deductions
- Delivery platform commissions and service fees from apps used to generate orders.
- Branded menu printing, local flyers, letterbox drops and promotional offers used to attract customers.
- Commercial kitchen equipment costs, noting that some larger assets may need to be deducted over time rather than all at once.
- Food safety and hospitality training that directly relates to running the business.
- Uniforms or protective items required for staff in the kitchen if the business pays for them.
Hidden deductions
- Phone and internet costs used for supplier orders, rostering, customer support and delivery management.
- Bank charges, accounting fees and BAS or tax agent fees.
- Business-use vehicle costs for supply runs, catering jobs or other business trips, with proper records.
- Home-based business costs for bookkeeping or admin if part of your home is genuinely used for the business.
- Small startup expenses and certain business setup costs may be deductible under the ATO rules.
What you can’t claim
- Personal meals, groceries or food you eat yourself during a normal shift.
- The private portion of your car, phone, internet or home expenses.
- Cash drawings or money you take out for personal use.
- Fines and penalties.
- Reimbursed expenses or amounts another party paid for you.
Tips to maximise your return
- Keep stock, merchant fees, delivery fees and utilities in separate bookkeeping categories so tax time is faster.
- Store tax invoices and receipt photos as you go instead of reconstructing everything at year end.
- Track mixed expenses monthly so you can support your business-use percentage if the ATO ever asks.
- Review equipment purchases before year end because the deduction timing can change depending on the asset and your business setup.
FAQ
Can pizza shop owners claim ingredients as a tax deduction?
Yes, stock and ingredients bought to produce food for sale are usually business expenses, provided they are genuinely for the business and properly recorded.
Can I claim my phone bill if I run the shop from my mobile?
You can usually claim the business-use portion only. Keep records that show how you worked out the business percentage.
Can I claim a new pizza oven immediately?
Not always. Some equipment can be claimed right away under the relevant rules, while other assets may need to be deducted over time.
Primary sources
- ATO business deductions: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions?trk=public_post_comment-text
- ATO deductions for depreciating assets and capital expenses: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions/deductions-for-depreciating-assets-and-capital-expenses?sbnstartupsapril16=
- ATO home-based business expenses: https://www.ato.gov.au/homebasedbusiness
- ATO overview of record-keeping rules for business: https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/record-keeping-for-business/overview-of-record-keeping-rules-for-business?anchor=Fiverulesforrecordkeeping
General information only. Reviewed against ATO guidance accessed on 20 March 2026.
Related guides
If you want to compare similar claim categories, these guides are a useful next step: