Can You Claim Office Cleaning as a Tax Deduction?
Important: This article provides general information about tax treatment of office cleaning expenses in Australia. It is not tax advice. Tax outcomes depend on your specific circumstances, business structure, and the nature of the expense. Always consult a registered tax agent or accountant before making decisions about your tax position.
Office cleaning is a legitimate, recurring business operating expense — and for most Melbourne businesses, the full cost of professional office cleaning is deductible. The question of deductibility becomes more nuanced when the cleaning relates to a home office, when the premises are shared with a private residential function, or when the expense has a mixed business and personal element. This guide explains the general tax treatment, the home office calculation methods, and the record-keeping required to substantiate cleaning deductions under ATO scrutiny.
Yes — professional cleaning costs for a commercial office are generally deductible as a business expense. Home office cleaning is partially deductible, apportioned to the percentage of the home used exclusively for work. Always keep tax invoices from your cleaning contractor and consult a registered tax agent for advice specific to your circumstances.
Commercial Office Cleaning — Generally Deductible
For businesses operating from a commercial premises — a leased office, shared workspace with a private office, or a business-owned building — the cost of professional cleaning is generally deductible as an ordinary business operating expense under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997).
Section 8-1 allows a deduction for losses and outgoings to the extent they are incurred in carrying on a business for the purpose of producing assessable income, and are not of a capital, private, or domestic nature. Professional cleaning of commercial premises clearly satisfies this test: it is an operating expense incurred in maintaining the business premises, directly connected to producing assessable income.
This deductibility applies to the full range of commercial office cleaning expenses: regular cleaning programs (daily, 3x weekly, or weekly), periodic deep cleans, carpet extraction, window cleaning, and any other professional cleaning service for the business premises. The expense does not need to be necessary for the business to produce income — it needs to be incidental and relevant to carrying on the business.
Home Office Cleaning Deductions
Cleaning expenses for a home office are more complex because the premises serve both a business and a private residential function. The ATO's position is that only expenses directly attributable to the business use of the home are deductible — general household expenses that benefit the entire home are not deductible simply because a home office exists within the property.
Dedicated work area — actual cost method
If you have a dedicated area of your home used exclusively or almost exclusively for business — a spare bedroom set up as an office, for example — you may be able to claim a proportion of general household expenses including cleaning under the actual cost method. The deductible proportion is typically calculated as the percentage of the home's floor area occupied by the dedicated work area.
For example, if your dedicated home office occupies 12 sqm of a 120 sqm home (10%), and your annual professional cleaning costs for the home are $2,400, the deductible cleaning component would be approximately $240. This calculation applies specifically to cleaning that covers the home generally — if you engage a cleaner specifically to clean the home office area, that specific cost may be deductible in full rather than apportioned.
Non-dedicated work area
If you work from a shared space — the dining table, a lounge area, or a space used for other household purposes outside work hours — you generally cannot claim cleaning expenses for that area. The ATO's position is that the cleaning is for the general household and is not sufficiently connected to the business use of the space to be deductible.
What Cleaning Expenses Qualify and What Do Not
GST on Office Cleaning — Input Tax Credits
If your business is registered for GST, you can claim the GST component of your office cleaning costs as an input tax credit on your Business Activity Statement (BAS), provided the cleaning is for a business purpose and you hold a valid tax invoice from your cleaning contractor.
A valid tax invoice for GST purposes must show: the supplier's name, the supplier's ABN, the date the invoice was issued, a brief description of what was supplied, the amount of GST (shown separately or stated that the price includes GST), and the total amount payable. For invoices of $1,000 or more, it must also show the recipient's name and ABN.
If your cleaning contractor is not registered for GST — which is possible for contractors with annual turnover below the $75,000 GST registration threshold — they will not charge GST and you cannot claim an input tax credit. Their invoice should not include a GST amount or indicate that GST is included. Confirm your contractor's GST registration status before engaging their services.
Practical note: For Melbourne business operators, the most common GST issue with cleaning expenses is receiving invoices that do not clearly show the ABN or the GST amount. Before paying an invoice, check that it includes the contractor's ABN and clearly indicates whether GST is included. An invoice without an ABN from a contractor who should be registered for GST creates a compliance exposure.
Records You Need to Keep
| Record Type | What to Keep | How Long |
|---|---|---|
| Tax invoices | Original tax invoice for every cleaning payment — showing ABN, date, amount, and GST separately | 5 years from lodgement |
| Bank/payment records | Bank statement or credit card statement showing payment to the cleaning contractor | 5 years from lodgement |
| Cleaning contract | The written scope of work and service agreement confirming the business nature of the expense | Duration of contract + 5 years |
| Home office area calculation | Floor area of dedicated work area and total home floor area — used to calculate the deductible proportion | 5 years from lodgement |
| Working-from-home records | Records of hours worked from home if using fixed rate method — required from 1 March 2023 | 5 years from lodgement |
ATO Home Office Methods — Fixed Rate vs Actual Cost
The ATO provides two methods for calculating home office expense deductions. The method that is most advantageous depends on your specific circumstances.
Fixed rate method (67 cents per hour from 1 July 2022)
The revised fixed rate method (updated from the previous 52 cents per hour rate) allows a deduction of 67 cents for each hour you work from home. This rate covers electricity and gas for heating, cooling, and lighting; internet expenses; computer consumables; stationery; and the decline in value of furniture and furnishings used in the home office. Notably, the revised fixed rate method includes a cleaning component within the 67 cent rate — you cannot claim additional cleaning expenses separately if using the fixed rate method. Records of hours worked from home are required.
Actual cost method
The actual cost method allows you to claim the actual work-related portion of each home office expense separately. Under this method, cleaning expenses attributable to the dedicated work area are deductible based on the floor area proportion. This method requires more detailed record-keeping but may produce a higher deduction for people with significant home office areas or higher-than-average cleaning costs. It requires evidence of the actual expense (tax invoices), the floor area calculation, and the portion of use attributable to business.
Common Scenarios and How They Are Generally Treated
Sole trader operating from a commercial lease. The full cost of the professional cleaning program is deductible as an ordinary business operating expense. Retain tax invoices. Claim the GST component as an input tax credit on your BAS if GST registered.
Company with a leased commercial office. The cleaning program cost is a deductible business operating expense at the company level. GST input tax credits apply if the company is GST registered and holds valid tax invoices. No private element — the entire cost is deductible.
Professional with a dedicated home office (actual cost method). Cleaning expenses for the dedicated work area are deductible in proportion to the floor area used for work. Keep the floor area calculation and cleaning invoices. Cannot also claim under fixed rate method for the same year.
Employee working from home. Employees working from home cannot claim cleaning expenses for a home office against their employment income under general principles — this is a private expense. The working from home deduction methods (fixed rate or actual cost) apply to eligible running expenses, and the fixed rate method's 67 cents per hour already incorporates a cleaning component. Specific employee home office deductions require meeting the ATO's criteria for a dedicated work area used exclusively for employment purposes.
When to Seek Professional Tax Advice
While the general principle that commercial office cleaning is deductible is well-established, there are circumstances where the deductibility question becomes more complex and where professional tax advice is important before lodging.
Mixed-use premises — a commercial space that also has a residential component, a professional consulting room in a shared residential property, or a small business run from a studio apartment — require careful apportionment of cleaning costs between business and private use. The ATO may scrutinise deductions where the private benefit is significant relative to the claimed business use.
End-of-tenancy cleaning for a commercial lease is generally deductible as a business operating expense, but if the cleaning is required to restore the premises to its original condition at the commencement of the lease (a make-good obligation), the tax treatment may be more nuanced depending on the lease terms and whether the cost relates to the restoration of a capital asset. A registered tax agent can advise on the correct treatment for your specific lease arrangement.
For cleaning expenses claimed through a self-managed super fund (SMSF) that owns commercial premises leased to a related business, the arm's-length rules and sole purpose test interact with the deductibility question in ways that require specific professional advice.
Frequently Asked Questions
Tax Invoices and ABN on Every Golden Star Invoice
Every Golden Star office cleaning invoice is a valid tax invoice — ABN, GST shown separately, date and description included. Simple record-keeping for your accountant. Free site inspection across Melbourne.