Tax Deductions for Cleaners

If you are in the cleaning business and you are not making the most of these tax deductions for cleaners, then you are losing out on a heap of cash every year.

Whatever type of cleaner you are, we understand your job can be tough! After a hard day, the last thing you want to do is think about tax. However, if you do think about it every now and then and remember to take note of your work expenses throughout the year, you could well earn yourself back a nice little award at tax time.

Equipment costs = the bulk of tax deductions for cleaners

Equipment and tools are essential to do your job. You can generally claim the cost of purchase for vacuums, sprayers, polishers and more – they can all be listed as tax deductions for cleaners, as long as you paid for it yourself and it’s directly needed for your cleaning work.

The tools of your trade take a real beating so it’s good to know you can also claim the cost of maintaining and repairing equipment related to your cleaning work.

The costs of more disposable or fast turnover items like cloths, mops, buckets and dusters can all be added to your tax return as cleaner tax deductions in the tools and equipment section. And don’t forget carriers, boot dividers and other bits and pieces you use to make transporting your materials easier.

Examples of tax-deductible equipment under $300

Cleaning chemicals
Wash/bathroom products
Small cleaning machines
Parts and accessories
Garbage bags
Cloths and wipes
Sponges and scourers
Dusters
Scrapers and blades
Applicators
Dust and cleaning mops
Buckets and wringers
Brooms and brushes
Trolleys and carriers
Batteries
Carpet cleaning accessories

NOTE: You will need to claim depreciation on items costing more than $300, unless you are running your own cleaning business. With the current $30,000 instant write off still available, small businesses can claim items costing up to $30,000 as a tax deduction.

Examples of tax-deductible equipment over $300

Vacuum cleaners
Floor polishing machines
Pressure washers
Blowers
Floor scrubbers
Carpet cleaners

Uniforms and protective items

If you are required to wear a cleaning company uniform and use protective clothes or equipment, and you paid for the items, then you can include them as deductions on your tax return. You can also claim the cost of cleaning or repair to your protective clothes and uniform.

These can include:

Compulsory uniforms
Laundering and repair of uniforms
Hats
Hair nets
Aprons/smocks

NOTE: You cannot claim for clothing that can be worn outside of work, such as plain black trousers or shirts.

Car expense tax deductions

Cleaners are the few people who may be able to claim their car journey to and from work. Generally, this journey is not claimable. However, the exception is if you are required to transport heavy items to and from your place of work. If you need to do this and are unable to leave your equipment at work, you can include this journey on your car expenses at tax time.

You can also claim travel between sites or to meetings or to pick up supplies. But be careful which method you choose to record your own car expenses. The simplest way may not always be the most profitable.

There are two methods available for when claiming the car expenses:

1. The Logbook method

Claim the actual business-use percentage of your car expenses
You need to keep a logbook of all your work related journeys including your odometer readings for a minimum of 12 consecutive weeks.
Claim fuel and oil costs using your actual receipts or estimate these expenses using the odometer readings as a basis.
You need proof of purchase for all other expenses for the car.

2. The Cents per kilometre method

The rate for the 2018-19 tax year is 68 cents per kilometre
You can claim a maximum of 5000 kilometres in a single tax year
You don’t need written evidence/receipts but you should be able to show how you reached that amount through a diary or schedule.

Travel expenses

Aside from the personal car use, cleaner tax deductions can also include travel expenses for journeys between workplaces, to meetings, job related training, workshops or conferences.

Travel expenses can include

Flights
Bus and train fares
Taxi fares
Hire car costs
Tolls
Parking

If you are required to stay away from home overnight you can also claim accommodation, food and incidental expenses. Remember you cannot claim travel expenses if you:

Did not pay the expense out of your own pocket
You were reimbursed by your employer
The travel was not related to your current job

Also as an employee, it’s common for travel costs to be accommodated in the form of an allowance, which appears on your payment summary. You should still keep records of all your expenses not just expenses that take you above that allowance.

Self-education

Personal development in any form is good for your self-esteem, your mind and your career. If you undertake training that is directly related to your current job, and you pay for all or part of the course or workshop – you may be able to claim those expenses.

Self-education expenses can include:

accommodation and meals (where staying overnight)
computer accessories
course fees
purchase costs of equipment or instruments costing $300 or less
the decline in value for items purchased costing more than $300
equipment repairs
travel expenses
home office running costs
internet usage
parking fees
phone calls
stationery/postage
student union fees
student services and amenities fees
textbooks
trade, professional, or academic publications

Home office expenses

You may be able to claim home office running costs if you required to do some of your work at home, like answering emails, creating quotes, paying bills or organising timetables. Or if you do an online course (directly related to your current job).

You can claim the running costs for your office as long as you have a designated office space and you are not simply using an area of a room that other people use.

Home office running expenses include:

the cost of power heating, cooling and lighting
phone cost are tax deductible
the work-related percentage of your internet costs
decline in value of equipment (computer, printer, scanner etc.)
decline in value of furniture and furnishings (desk, chair, filing cabinet)
the cost of repairs to furniture and furnishing used for your work
cleaning costs

You can claim this running expense in one of two ways:

Claim the amount of actual expense incurred through an established pattern of use.
Or claim 45 cents per hour of use.

Phone expenses

You can include phone expenses if you use your phone for work, keep a record of how much you use it for work and for private and include the work percentage of calls and expenses in your tax return.

Cleaners’ tax deductions – General

Other expenses that you may be able to claim include:

Work-related subscriptions
Memberships
Union fees
Gifts and Charity donations
Tax agent fees
Investment property interest/expenses
Dividend and share income expenses
Personal super contributions
Income support insurance (outside of Super)
Stationery
Work bags

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Taking money or other benefits from a private company is not always as simple as making a withdrawal. Under Australia’s Division 7A tax rules, certain payments, loans and forgiven debts can be treated as taxable dividends. Here is a practical overview of how Division 7A works and how private business groups can manage the risk. What is Division 7A? Division 7A is designed to prevent shareholders and their associates from accessing private company profits without paying the appropriate tax. It applies mainly where a private company provides a financial benefit to: A shareholder; or An associate of a shareholder, such as a spouse, relative, family trust or related entity. If Division 7A applies, the benefit may be treated as an unfranked dividend. This means the recipient may need to include the amount in their assessable income without receiving a franking credit. What transactions can trigger Division 7A? Division 7A can apply to more than straightforward cash withdrawals. Common risk areas include: Payments A payment may include: Paying a shareholder’s private expenses; Paying personal credit-card balances; Transferring company property below market value; Paying school fees or mortgage expenses; or Providing company assets for private use. Recording a payment as a “shareholder drawing” does not prevent Division 7A from applying. Loans and advances Division 7A may apply where a private company lends money to a shareholder or associate and the amount is not repaid before the company’s lodgment day. The lodgment day is generally the earlier of: The due date for the company’s tax return; and The date the return is actually lodged. This means lodging the company return early may bring forward the deadline for addressing the loan. Forgiven debts Division 7A may also apply where the company forgives a debt owed by a shareholder or associate. A formal debt release is not always required. Risk can arise where the company writes off the amount or acts in a way that suggests it does not intend to collect the debt. How can a company loan avoid becoming a deemed dividend? A shareholder loan can generally avoid an immediate Division 7A dividend if it is placed under a complying written loan agreement before the company’s lodgment day. A complying loan ordinarily requires: A written and legally effective agreement; Interest charged at no less than the annual Division 7A benchmark rate; A maximum term of seven years for an unsecured loan; or A term of up to 25 years for a qualifying loan secured by a registered mortgage over real property. The ATO’s benchmark interest rate for the 2026–27 income year is 8.77%. Because the benchmark rate changes annually, businesses should update their loan calculations each year. Minimum yearly repayments Once a complying Division 7A loan is established, the borrower must generally make a minimum yearly repayment from the following income year. The repayment is calculated using: The opening loan balance; The benchmark interest rate; and The remaining term of the loan. If the borrower pays less than the required amount by 30 June, the shortfall may be treated as an unfranked dividend. Businesses should also avoid temporary or circular repayments. For example, a shareholder should not repay a company loan immediately before 30 June and then borrow the money back shortly afterwards. Division 7A contains rules that may disregard these repayments. What is distributable surplus? A Division 7A dividend is generally limited to the company’s distributable surplus. Distributable surplus is calculated using a statutory formula based broadly on the company’s net assets, subject to specific adjustments. It is not necessarily the same as: Accounting profit; Retained earnings; Cash held by the company; or The balance of the company’s franking account. Market values and the legal character of assets and liabilities may affect the calculation. For this reason, businesses should prepare a documented distributable-surplus calculation rather than relying only on the balance sheet. Division 7A and family trusts Division 7A can also affect trust structures. A common arrangement occurs where a trust distributes income to a private company but does not immediately pay the amount. This is commonly referred to as an unpaid present entitlement, or UPE. In June 2026, the High Court delivered its decision in Commissioner of Taxation v Bendel. The Court found that the UPEs in that particular case were not loans made by the corporate beneficiary to the trustee for the purposes of section 109D. However, Bendel does not mean that all UPEs are automatically outside Division 7A. The trust deed, distribution resolutions and subsequent use of the funds remain important. Separate Division 7A provisions may apply if the trust provides payments, loans or other benefits to the company’s shareholders or their associates. Private groups with corporate beneficiaries should therefore review existing UPE arrangements in light of Bendel and the ATO’s updated position. Can a Division 7A mistake be corrected? The Commissioner has discretion under section 109RB to disregard a deemed dividend, or allow it to be franked, where the Division 7A outcome arose from an honest mistake or inadvertent omission. Relief is not automatic. The ATO may consider: How the mistake occurred; Whether reasonable care was taken; The taxpayer’s compliance history; and Whether appropriate corrective action was completed. Corrective action may involve repayments, interest, amended accounts, loan documentation or amended tax returns. Documents should never be backdated or created to support transactions that did not actually occur. Practical steps for business owners Division 7A should be reviewed throughout the year—not only when the company tax return is prepared. A practical compliance process should include: Reconciling shareholder and director loan accounts; Identifying private expenses paid by the company; Reviewing benefits provided to shareholders and family members; Documenting new loans before the company’s lodgment day; Calculating minimum yearly repayments; Confirming repayments have cleared by 30 June; Checking the source of repayment funds; Preparing a distributable-surplus calculation; and Reviewing trust distributions and UPEs. The bottom line Division 7A can turn an informal payment, loan or accounting entry into an unfranked taxable dividend. The best risk-management strategy is to identify transactions early, maintain effective documentation and review all shareholder and related-party accounts before 30 June and before lodging the company’s tax return. Division 7A is highly fact-dependent. Business owners should obtain professional advice before implementing or correcting a private company or trust arrangement. This blog provides general information only and is current as at 13 August 2026. It is not legal, tax or financial advice.