Is BubbaDesk tax deductible?
In short, yes!
Whether you're already a BubbaDesk member or considering joining, here's something that might make the decision even easier — especially at tax time.
What's new?
From this financial year (FY26), all BubbaDesk invoices will show a clear 60/40 split between coworking and childcare, helping you (and your accountant) easily identify any deductible portion of your fees.
Here’s how it breaks down:
60% – Coworking: May be tax-deductible if you’re using the space for income-generating work (e.g. as a freelancer, business owner, or remote employee).
40% – Childcare: Typically not deductible under current tax law.
While past invoices won’t be reissued, you can still talk to your tax adviser about how to apply this split retrospectively.
🔍 Want to Know Your Numbers?
We’ve made it easy to calculate your potential savings. Use our free ChatGPT cost calculator to compare BubbaDesk vs traditional daycare for your family, including:
After-tax costs
Value of make-up and complimentary days
Time saved
Flexibility gained
💡 As an Employee, There’s More to Consider
You might be eligible to claim the coworking portion of your BubbaDesk fees — even as an employee — if your employer doesn’t provide a dedicated workspace for you every day.
For example:
“My office now uses hot-desking. There aren’t enough desks for everyone, so I work remotely part of the week. On those days, I choose to work from BubbaDesk.”
If your employer confirms they can’t provide you with a desk — due to hot-desking, space constraints, or other reasons — and you’re using BubbaDesk to carry out your work duties, that coworking portion may be deductible.
✅ Invoices are already split to make this simple.
✅ Just confirm your situation with your employer and tax agent.
💼 BubbaDesk vs. Daycare. Smarter, More Flexible, & Potentially More Affordable
When weighing up your care and work options, BubbaDesk offers more than convenience — it can actually deliver better value.
| Benefit | BubbaDesk | Traditional Daycare |
|---|---|---|
| Tax benefit | 60% of fees is tax deductible | Not deductible |
| Make-up days | Yes – up to 3 per quarter | Rarely offered |
| Complimentary days | Yes – up to 3 per quarter | Not included |
| Location | Work and childcare in the same building | Separate drop-off/pick-up required |
| Flexibility | Adjust bookings weekly, adhoc bookings | Fixed days and policies |
| Cost savings | Tax deductions + included days = lower effective cost | Full fees for missed days |
Considerations
Here’s a step-by-step guide on how to claim tax deductions for desk hire in a coworking space:
- Eligibility: Ensure that you meet the eligibility criteria set by the Australian Taxation Office (ATO) for claiming deductions. Generally, you can claim deductions if the expenses are incurred in the course of producing assessable income and are not private or domestic in nature.
- Exclusive use: To claim a deduction, the desk hire expense must be for a dedicated workspace that you use exclusively for income-producing activities. It means you should not use the space for personal purposes.
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Keep records: Maintain accurate records of all expenses related to desk hire in the coworking space. This includes invoices, receipts, and any other supporting documents that show the cost of the desk hire.
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Apportionment: If you only use the coworking space for part of the year or part of the time, you’ll need to apportion the expenses accordingly. Calculate the proportion of time or space you use for income-producing activities versus personal use, and claim a deduction for the relevant portion.
- Include the deduction in your tax return: When completing your tax return, include the deduction for desk hire expenses in the appropriate section. Provide accurate information and calculations to support your claim.
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Seek professional advice: If you’re unsure about claiming deductions for desk hire in a coworking space or if your circumstances are more complex, it’s advisable to seek guidance from a tax professional or accountant. They can provide personalized advice based on your specific situation and ensure compliance with tax laws.
Remember to review the latest guidelines and regulations from the ATO or consult with a tax professional to ensure you meet all the requirements and are claiming the appropriate deductions for your desk hire expenses in a coworking space.
