Keeping an office clean isn’t just about appearances—it’s also an accounting question. Many businesses wonder: is office cleaning a deductible business expense, an operating cost, or something else entirely? The short answer is that office cleaning is considered an operating expense, meaning it falls under the day-to-day costs of running a business. But there are some nuances worth unpacking.

Is office cleaning tax deductible?

Yes. In Australia, the ATO recognises cleaning services for business premises as a deductible expense. This sits alongside electricity, rent, insurance, and similar running costs. Because cleaning directly supports the health, safety, and functionality of a workplace, it is treated as a necessary and ordinary expense.

Is it an operating or overhead expense?

Office cleaning generally fits into the category of overhead expenses—costs that don’t generate revenue directly but are essential for operations. Much like paying for internet, stationery, or security, cleaning enables staff to perform at their best without interruption.

Here’s a quick comparison to clarify:

Why does this matter for businesses?

Understanding how cleaning is classified helps businesses:

• Budget better: Cleaning is a recurring cost, so it should be factored into monthly or quarterly operating budgets.

• Claim correctly: Correctly classifying cleaning means maximising tax deductions without raising red flags with the ATO.

• Boost workplace health: A clean environment isn’t just cosmetic—it reduces absenteeism, supports compliance with workplace health standards, and improves morale.

How do businesses usually pay for it?

Most companies outsource to commercial cleaning providers on a contract basis. Costs are typically:

• Fixed rate (weekly or monthly service fee)

• Hourly rate (for ad-hoc or specialised cleaning)

• Per-square-metre (common in larger offices and facilities)

These invoices are recorded as part of operating expenses in the business’s accounts.

Is office cleaning ever a capital expense?

Only in rare cases. For example, if a company pays for a deep industrial clean as part of fitting out a brand-new office, those costs might be wrapped into the capital expenditure of the fit-out. But day-to-day cleaning—vacuuming, bins, bathrooms—always sits firmly as an operating expense.

Real-world example

Think about a mid-sized Sydney law firm. They employ 40 staff, and their clients visit daily. The firm spends $1,200 a month on a cleaning contract. This expense doesn’t generate direct revenue, but without it, client perception and staff wellbeing would take a hit. The cost is booked under “Repairs, Maintenance & Cleaning” in the P&L—straightforward, deductible, and recurring.

FAQ

Is office cleaning GST deductible?
Yes, if you’re registered for GST, you can usually claim input tax credits on the GST portion of cleaning invoices.

Can employees cleaning the office be claimed?
Yes, but only if they’re paid for it as part of their employment contract or casual agreement. Volunteer cleaning by staff isn’t deductible.

Does irregular cleaning (e.g., after an event) count?
Yes, one-off cleaning costs are still deductible, provided they relate to the business premises.

At its core, office cleaning is a recurring operating expense that supports the everyday function and professionalism of a workplace. While it won’t show up on the revenue side of the ledger, its absence is quickly felt in staff health, client impressions, and compliance. For businesses looking at systems, practices, and smarter cost management, this breakdown of office cleaning offers practical insights.