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What’s deductible? Daycare furniture, desks and more

Daycare furniture, fixtures in your building (if you own it), and other expenses are someway tax deductible. You can claim a certain amount back annually and reinvest it in your business. We list some of the items below.

 

Daycare furniture

This is slightly difficult to claim. The 2017-18 Federal Budget made changes to depreciation law. Unless installed by the owner, items in the plant and equipment category aren’t claimable. This includes beds, lounges, and other furniture items. But if you’re the owner of the daycare business and did buy the furniture yourself then you don’t have a problem. Getting a depreciation report done will help you with claiming the deductions properly.

Playground equipment

This is slightly different from the daycare furniture. Items like these aren’t easily removable because they’re fixed to the ground. They’re considered capital works as a result. Therefore you can claim them more easily in a depreciation report.

Educational materials

Puzzles, books, CDs, and other materials used as educational tools are totally deductible. If it costs less than $300 then you can claim it immediately.

Food

Yes, really. Save those receipts! So long as the things you buy are used to feed the kids during the day. Keep the receipts and proof of the math you used to calculate the final number amount.

Education

In the early childhood education sector,  teachers and carers undergo numerous training seminars. But educational costs, like course fees and textbooks, are totally tax deductible.

Office supplies

This explains itself but still good to know. Office supplies like paper, markers, the ink for the photocopier, and even your desk accessories are claimable.

setting up a daycare
The office supplies can be claimed on tax

 

There’s a more comprehensive list on what you can claim here. But know that most aspects of your childcare business, from the daycare furniture to the packs of markers you buy in bulk are, to an extent, deductible.

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