60% Tax Deductible. Why BubbaDesk Costs Less Than You Think.
Let's do the numbers
Have you considered whether a workspace tax deduction could be more financially beneficial for your family than traditional childcare subsidies? Trust your instinct, and let's explore how the numbers might work for you.
💼 BubbaDesk vs. Daycare
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 |
| Discount on commitment | 10% discount on 12 month commitment | No discount |
| Cancelation | 4 weeks notice | Typically 4+ weeks notice |
| 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 |
What does this look like in practice?
- The Business Owner/Freelancer: Sarah pays for a day at BubbaDesk. Her invoice shows 60% allocated to her workspace. Because she uses this space for income-producing work, she passes the invoice to her tax agent to explore claiming the coworking portion as a business expense.
- The Remote & Hybrid Worker: Chloe has the flexibility to work from home a few days a week. Because the 60% allocated to coworking on her invoice may be tax-deductible if the space is used for income-generating work, she asks her tax agent if this portion is claimable as a remote work expense.
As an Employee, here’s how we help you navigate the transition
Want to see if your employer will support your return-to-work plan with BubbaDesk? [Download our Employer Info Pack] to help start a conversation with your HR team about subsidising your workspace.
Discuss these points with your tax professional:
- ✅ Eligibility: Consider if you use the coworking space exclusively for your income-producing work.
- ✅ The Split: We make the paperwork easy. Your invoice is automatically split 60/40.
- ✅ Record Keeping: Simply hand your itemised BubbaDesk invoices straight to your accountant.
*BubbaDesk provides premium workspace and childcare solutions, not financial advice. We always recommend speaking to a registered tax specialist regarding your unique circumstances.
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.
