An ATO visit during lunch service: keeping the business running while you get the records together
Updated: 1 day ago
An ATO visit calls for a calm response: clarify the request, involve your accountant and give someone responsibility for keeping the business running.
The coffee machine is going, orders are waiting and a supplier needs a signature. An unexpected conversation with the tax office adds another job to an already full service. Even well-organised records take time to retrieve when the owner is also managing the floor.
In a 24 September 2026 media release, the Australian Taxation Office reported unannounced visits to Melbourne CBD hospitality venues on 22 and 23 September. The release described ongoing investigations. It did not establish that every business visited had done something wrong.
For an Australian café or restaurant owner, the practical question is how to respond properly while customers, staff and suppliers still need attention.
The priorities are straightforward:
Confirm who is visiting and what they need.
Give the floor and the records separate responsible people.
Record requests, deadlines and documents supplied.
Forecast the actual cost of the response before deciding whether funding is needed.
What should you establish during an ATO visit?
Start with names, identification, the purpose of the visit and the information being requested. Ask which entity and periods the request covers. A business with several venues needs to know whether the discussion concerns one location or the wider operation.
If you are uncertain about the contact, use independently obtained ATO contact details to check it. The ATO’s scam safety guidance explains how to verify a questionable interaction. Use verified channels when providing access to records or systems, and obtain advice about meeting any lawful access requirements.
Ask whether officers are seeking cooperation or exercising formal powers, and contact your registered tax agent or legal adviser as appropriate. The ATO’s formal access guidance explains that authorised officers have access powers and that occupiers have obligations to provide reasonable facilities and assistance when those powers are exercised. Do not assume a busy service automatically postpones those obligations.
Give the floor a clear handover
If there is a suitable supervisor, ask them to run service while you deal with the visit. Tell them what they can decide, when they should interrupt you and who will handle deliveries, refunds or a staff absence. Keep the instruction factual and brief.
Choose an appropriate place for the discussion, where feasible and consistent with the officers’ requirements. Customers do not need a running commentary, and staff should not have to guess who is in charge.
Then call your accountant with a useful summary: who has arrived, why they say they are there, what has been requested and any stated deadline. Ask who should coordinate the response and whether another professional is needed.
Delegation has a cost. A supervisor may need extra hours, the bookkeeper may need a separate appointment and you may lose time normally spent ordering or checking margins. These are practical operating costs to quantify. They are not evidence that a tax debt will follow.
Collect the requested records once, with a clear trail
Ask for the request in a form you and your adviser can work from. Where possible, confirm the scope and dates rather than sending a large, unlabelled folder and hoping it contains everything.
A hospitality response may involve point-of-sale reports, merchant settlements, bank statements, purchase invoices, payroll records and superannuation information, depending on the request. Business.gov.au’s record-keeping guidance covers the broad transaction and employment records businesses need to maintain. Ask your accountant which requirements apply to your records.
Use a simple document register showing the item requested, its period, who is finding it and when it was supplied. Keep copies of the material provided and the correspondence that explains it. If something is missing or unclear, tell your adviser rather than trying to reconstruct it from memory without supporting evidence.
Preserve original records and their supporting detail. Corrections should follow the appropriate accounting process with an explanation, rather than overwriting the history to make a report look tidier.
This preparation also helps if you later need funding. A working capital finance application needs a coherent explanation of the business and its obligations. Conflicting records make that explanation harder.
Put the disruption into a cash forecast
The visit itself does not tell you how much cash the business needs. Build the answer from known payments and reasonable estimates.
Start with available cash and receipts expected from normal trade. Add wages, rent, stock, tax and other existing commitments on their actual payment dates. Then include the response costs you can identify, such as additional bookkeeping, professional advice and necessary staff cover.
Business.gov.au explains that a cash flow forecast estimates future receipts and costs to help identify shortages. It also recommends labelling estimates and making the GST treatment clear. A rolling 13-week cash flow forecast can give you a practical weekly view while the work is underway.
Keep confirmed obligations separate from uncertain amounts. If your accountant identifies an issue still being assessed, show an explicitly labelled scenario rather than quietly treating it as either zero or a final bill. Ask when better information is likely to become available and who will update the forecast.
For example, an illustrative response budget could include $1,800 of professional work and $600 of additional staff cover. That is $2,400 before any other consequences are known. The useful question is which week the payments fall due and how much cash remains after ordinary commitments. These figures are assumptions, not an estimate of typical costs.
Avoid counting owner time twice. If the owner steps away from service but receives no additional payment, record the operational effect separately from extra cash wages. The distinction between profit and cash flow matters when deciding what genuinely needs funding.
Protect cash without creating another problem
Work through actions that improve cash availability before adding repayments. Follow up overdue catering invoices, check unused stock orders and review optional spending. Discuss any proposed payment changes with the supplier before relying on them in the forecast.
The guide to improving business cash flow before borrowing can help structure that review. The aim is a manageable plan that preserves the trade the business depends on.
If a shortfall remains, define its amount, timing and repayment source. Your finance broker can assess possible structures, while your tax agent handles the tax position. Neither role replaces the other.
Compare the cost of working capital finance with the benefit of maintaining operations. Include fees and the frequency of repayments in the forecast. Approval and timing depend on the circumstances, so do not commit to spending on the assumption that finance will arrive by a particular date.
If the business was already repeatedly short of cash, investigate that underlying position with your accountant. The article on when borrowing may not solve a cash flow problem explains why a new facility needs a credible repayment path.
Frequently asked questions
Does a visit mean the business has a tax debt?
An arrival at the premises does not establish a particular debt or outcome. Ask what the visit concerns and give your adviser any notices or correspondence. Build the cash plan around confirmed obligations, with clearly labelled scenarios for unresolved issues.
Can I ask my accountant to help?
Contact your accountant promptly and ask how they can assist with the specific request. If formal powers or notices are involved, seek advice about your rights, obligations and deadlines. Do not assume that calling an adviser suspends a requirement to respond.
Should I borrow money straight away?
First identify whether there is a cash shortfall after ordinary commitments and the response costs. If funding is needed, assess repayment capacity and alternatives before committing. A visit alone is not enough information to determine a suitable finance amount or structure.
What should I change once the immediate work is finished?
Review where retrieval took longer than expected. Assign responsibility for reconciliations, document storage and system access, then check that another authorised person can find essential records. Keep the cash forecast current until additional costs and any resulting obligations are understood.
Make the next decision from the records
Put one person in charge of service and one in charge of coordinating the response. Once the requested records and cash forecast are reliable, you and your advisers can decide what operational changes or funding discussions are actually needed.
Need to plan for an unexpected cash flow interruption?
Fairlane Finance can help you assess a working capital need and consider funding options alongside your accountant’s cash flow plan.
General information only. This article does not constitute financial, credit, legal, tax, accounting, compliance or valuation advice. Finance is subject to lender approval, eligibility criteria, terms, fees and conditions. Consider obtaining independent professional advice for your circumstances before acting.
