Enquiries: Monday – Friday 8:30am – 5pm AEST
Call 1300 36 46 46
The information on this page is intended for reference of a general nature only for clients of Absolute Domestics. The contents of this page does not constitute advice of any nature and should not be relied upon as such. Clients should seek such professional advice they deem necessary in relation to any particular matters they may have. To view information on this page, click the question or link and more information will display.
Domestic cleaning is not usually a Tax Deduction except where:
the householder owns a home based business and can claim a percentage of the cleaning based on the percentage of the floor space used in connection with the business as it relates to the total floor space of the dwelling or,
the cleaning service is for a rental property, then the landlord can claim 100% of the clean as a tax deduction.
The majority of cleaning contractors registered with Absolute Domestics are not entitled to an ABN because the level of their business activity is such that they are not seen as carrying on an Enterprise.
The ATO lists features of an enterprise as:
Features of a business include:
Advertising, setting up a social media account or a website for the business.
Purchasing business cards or stationery for the business.
Obtaining business licences or insurance to operate.
Leasing or purchasing premises, equipment or stock for the business.
Issuing quotes or bidding for work.
Consulting with financial, business or tax advisors.
Applying for finance.
Buying a business.
The activity is a significant commercial activity and is a reasonable size and scale.
There is an intention to make a profit from the activity.
If the contractor providing the service has demonstrated to the ATO sufficient business activity to be granted an ABN, they will provide you with a Tax Invoice quoting their ABN.
Otherwise, they will provide you with a signed Statement by Supplier.
Certain suppliers are not required to quote an ABN or do not qualify for an ABN. These suppliers can complete a Statement by a supplier form instead of quoting an ABN saying they are not required to quote an ABN. This form is provided on the ATO website and can be seen by clicking the link below.
An individual or a business that supplies goods or services can only complete a Statement by a supplier form if one or more of the following applies:
They are not carrying on an enterprise in Australia.
The payment does not exceed $75, excluding any GST.
They are an individual, and a written statement is provided to the payer to the effect that the supply is either:
Payers may choose to obtain a signed statement from the supplier containing the required information or use the form which can be downloaded by clicking the link below.
https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Statement%20by%20a%20supplier.pdf
If you do not use the form, you can have the cleaner complete a signed Statement quoting:
Name
Address
Reason: Use one or more of the following
The payer is not making the payment in the course of carrying on an enterprise in Australia
The payment does not exceed $75.00
The supply is made by an individual or partnership without a reasonable expectation of profit
The supplier is not entitled to an ABN as they are not carrying on an enterprise in Australia
Signature of Supplier
Phone number
You simply keep the document with your normal business papers for five years.
Should the question arise, the document is used to demonstrate your compliance with requirements regarding payments to non ABN holders.
The ATO ask that the form not be sent to the Tax Office.
The ATO asks the supplier to give the completed statement to any payer that they are supplying goods or services to.
The payer must then keep that document with other records relating to the supply for 5 years.
If you are required to withhold an amount, you must:
be registered for PAYG withholding – this can be done by phoning 13 28 66 between 8.00am and 6.00pm, Monday to Friday (you may already be registered if you are withholding from other payments, such as wages to employees)
withhold 46.5% of the payment unless an exception applies
report and pay the withheld amounts to ATO using your activity statement
complete a PAYG payment summary – withholding where ABN not quoted (NAT 3283)
provide a copy to the supplier at the time of payment or as soon as possible afterwards – suppliers can use the payment summary to claim a credit in their income tax return for the amount withheld
keep a copy of the payment summary with your records
complete a PAYG withholding where ABN not quoted
See How Much Time Cleaning Is Taking From You Each Year
Just add your home size and number of rooms to see how many hours per year you spend on chores – hours you could be enjoying with family or yourself.
or Call 1300 36 46 46
“I’ve worked on my own before, and it was stressful dealing with everything myself. With Absolute Domestics, I still choose my hours and clients, but I always have someone to help if something comes up. It feels like I’m running my own business without being left on my own.”
“I’m a mum and I needed work that fits around school hours. Absolute Domestics made that possible. I can take school holidays off, increase my work when I want, and never feel pressured to do more than I’m comfortable with.”
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