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Tax Deduction for Cleaners in Melbourne

Tax Deduction for Cleaners in Australia | Expert Accountants Advise

Cleaners at ease: Ample of Tax Deductions available to claim.

In case you’re in the cleaning business and you’re not benefitting as much as possible from these tax deductions for cleaners, at that point you may miss out on a store of money consistently. We understand your job is tough and requires more of mental pressure than physical, but we would still strongly recommend you to take some time out of your busy schedule to do some tax planning.

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Equipment costs = source of claiming tax deductions for cleaners

The expense on the procurement of vacuums, sprayers, polishers and more can be claimed as tax deductions for cleaners, if you paid for it yourself and it’s directly related and required for your cleaning work.

The expense on repairs and maintenance of the equipments which are utilized in the cleaning work can also be claimed as deductions.

The expenses of more expendable or quick turnover things like fabrics, mops, buckets and dusters would all be able to be added to your tax return as cleaner tax deductions in the equipments and tools section.

Few Examples of tax-deductible equipments you can buy “under $300”:

  • Mini cleaning machines
  • Blades and Scrapers
  • Parts and accessories
  • Disposal bags
  • Carpet cleaning accessories
  • Washroom & bathroom products
  • Fabrics and wipes
  • Scourers and sponges
  • Dust Cleaners
  • Wringers and buckets
  • Cleaning chemical
  • Applicators
  • Trolleys and carriers
  • Cleaning and dusting  mops
  • Brooms and brush ware
  • Batteries

 

If you are not running your own cleaning business, then you need to claim depreciation on items costing more than $300. Small businesses can also claim the instant $20000 write off for tools like vacuum cleaners, blowers or pressure washers which cost more than $20000. You should plan your tax wisely and claim every possible deduction available!

Uniforms and protective items

The cleaning company uniform or protective clothes used, can be claimed as a tax deduction while furnishing the return. The expense on cleaning or repair to your protective clothes and uniform can also be claimed, if and only if you have paid for all these from your own pocket.

 Following things fall under this category:

  • Compulsory Clothes
  • Washing and maintenance of uniforms
  • Hats & Caps
  • Aprons & smocks
  • Hand Gloves
  • Sun protection
  • Shoes & Boots
  • Eye protection glasses
  • Hair nets
  • Face masks

Note: Clothing that can be worn outside of work, such as plain black trousers or shirt cannot be claimed.

 

Car expenses that attract tax deductions:

If you are needed to carry heavy items from and to your place of because you are not able to leave the item at work place, then it can be included in car expenses at tax time. Travelling between sites, for meeting or to pick up supplies can also be claimed as deduction.

The method to recorded car expenses must be carefully determined. Cleaners are the only ones who are allowed to claim this deduction.

The cents per kilometre method

  • 68 cents per kilometer is the rate for the tax year 2018-19.
  • Maximum claim can be of 5000 kilometres in a single tax year
  • No evidence/receipts required but you should be able to show how you reached that amount through a diary or schedule.

The logbook method

  • The actual business-use percentage of your car expenses can be claimed.
  • A logbook of all your work related journeys including your odometer readings for a minimum of 12 consecutive weeks need to be kept.
  • The expense on fuel and oil can be claimed by using the actual receipt or estimation on the basis of odometer.
  • Other expenses related to the car with proper proof can be claimed as deduction.

 

Travel expenses

Cleaners can claim deduction travel expenses for journeys between workplaces, to meetings, job related training, workshops or conferences.

Travel expenses which can be claimed as deduction include:

  • Train and Bus Charges
  • Taxi Charges
  • Flights
  • Parking
  • Tolls
  • Hire fees

If you are required to stay away from home overnight you can also claim accommodation, food and incidental expenses.

You cannot claim travel expenses if any of the following conditions holds true:

  1. You did not pay the expense yourself
  2. The employer had reimbursed the amount to you.
  3. The travel was not related to you current job.

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Self-education

If you pay for a training or workshop directly related to your current job, these expenses can be claimed.

Self-education expenses can include:

  • Course Fees
  • Accommodation and meals (where staying overnight)
  • computer accessories
  • Expense on purchase of equipment costing $300 or less
  • Reduction in value of items costing more than $300
  • Repair of equipments
  • travelling related cost
  • textbooks
  • student services and amenities fee
  • phone bills
  • home office running costs like internet, electricity and other charges
  • trade, professional, or academic publications
  • internet usage
  • parking fees
  • postage and stationary services
  • Fees for student union

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Home office expenses

You can claim work from home office costs, like answering emails, creating quotes, paying bills, organising timetables or if you do an online course. These deductions can be claimed only if you have a designated office space to do the work and that place is not accessible for others.

Home office running expenses mainly include:

  • the expense on power heating, cooling and lighting
  • phone cost
  • the percentage of internal cost related to work
  • Reduction in equipment’s value (computer, printer, scanner etc.)
  • Reduction in value of furniture and furnishings (desk, chair, filing cabinet)
  • Repairs expenses of furniture and furnishing used for your work
  • cleaning expenses

 

The running expenses to be claimed can be the actual expense or 45 cents per hour of use.

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Phone expenses

If you use your phone for work with proper record percentage showing difference in the use for official and private purposes, then official expenses can be claimed as deduction.

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Cleaners’ tax deductions – General

Other expenses that maybe claimed include:

  • Memberships
  • Personal super contributions
  • Union fees
  • Expenses on Work Bags
  • Dividend and share income expenses
  • Gifts and charities
  • Renewal of License fees
  • Tax agent charges
  • Subscription fees related to work
  • Investment property interest & expenses
  • Income support insurance (outside of Super)
  • Stationery expenses

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