Are housekeepers Tax deductible?

Are housekeepers Tax deductible?

“If not, why not?  Bookkeepers are.  Not doing my washing gives me more time to work in / on the business = more profit = more tax. So I believe it should be tax deductible”

Answer:

Cleaning definitely is tax deductible, assuming that you have a home office (dedicated, not just a laptop on the lounge).

I definitely see your argument about if you’re leveraging your time, you can do more in the business (more profit, therefore more tax) – but I haven’t heard you can.

Doesn’t mean you can’t!

Playing devil’s advocate (or rather the “ATO” advocate) – where does this stop?

For instance, could I claim my gym membership because it gives me energy & health to then do more in the business?

I would very highly argue this, but I know that gym memberships are not allowable to people (apart from police officers / army etc who are required to be fit for their role).

I believe the ATO would call on Section 8-1(2)(b) of the 1997 Tax Act, you cannot deduct something if “it is a loss or outgoing of a private or domestic nature;”

Domestic expenditure relates to the taxpayer’s household or other domestic affairs, which a housekeeper would fall under.

Unless it was home office as mentioned above.

Hope that helps! 🙂

P.s. I never makes sense to spend $1 in order to save 40c, which is what is happening if you’re buying things / paying for stuff JUST to get the tax deduction.

P.p.s here is a great housekeeper job ad that we used to help us find an amazing housekeeper in 24 hours.


Ad for Housekeeper

Hola!

Do you happen to know anyone who could help us around the house a day a week?

This might be a great opportunity for a hard working student looking for an easy $100 – $200 (cash).

We’re a young couple who have a lot on our plate – running a business, family, health and fitness, volunteering and study.

Time has become really precious to us, so we’re looking for a hand to make our house a home.

  • You would be trustworthy, naturally clean and organized .
  • You would love to cook healthy and nutritious meals – recipes and ingredients provided.
  • You would be known by your friends as someone who is very hospitable and homely.

In between your studies could catch the bus to right outside our apartment in Hawthorne while we’re at work.

You’d make our lives easier, while earning a bit extra cash by –

Washing the dishes, clothes and car.

Cleaning up the place – it’s only a small 2 bed apartment.

🙂 Maybe grabbing some groceries.

😀 Preparing a few clean meals – we love vegetables!

Making some cold pressed fruit and veggie juices – trying to be healthy!

Moving forward, if you wanted to earn more there are other things we can get your help with in time – e.g. baby sitting or picking up our little girl from school – and other families who could use your help.

So if this is of interest to you or someone you know, I’d love a SMS to 0422 845 277 to introduce yourself and explain why you think this would suit you perfectly.

Thanks

Harvee

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