Claiming cleaning equipment and linen in a short-term rental
Running an Airbnb or short-term rental involves ongoing investment in cleaning equipment, linen, towels, and supplies. The good news is that most of these costs are deductible — the treatment depends on the cost and nature of each item.
Cleaning equipment
Vacuum cleaners, mops, and steam cleaners: These are Division 40 plant and equipment assets. The ATO assigns effective lives to cleaning equipment:
- Vacuum cleaner: 7 years
- Steam cleaner: 5 years
Under $300: If any single cleaning item costs less than $300 and has an effective life of less than 1 year, it can be claimed immediately. This applies to some consumable cleaning items but not to durable equipment.
Low value pool: Cleaning equipment costing between $300 and $1,000 can be pooled in the low value pool and depreciated at 18.75% (first year) then 37.5% per year — usually faster than the ATO effective life.
Cleaning supplies
Cleaning products (detergents, disinfectants, laundry powder, bin liners) are consumables. They are immediately deductible as operating expenses in the year you purchase them. No depreciation schedule is needed.
Linen and towels
Linen sets, towels, and manchester are Division 40 plant and equipment. They have an ATO effective life of approximately 6.67 years. However:
- If a single set costs less than $300, it can be claimed immediately
- Multiple sets bought at once may need to be assessed as a group
Apportionment for private use
If you use the property personally, all deductions — including cleaning equipment and linen — must be apportioned based on the rental use proportion. Cleaning equipment used only during guest stays is a clearer case; linen used by both guests and yourself may require more careful apportionment.
Professional cleaning costs
If you engage a cleaning service rather than doing it yourself, those costs are immediately deductible operating expenses. Keep all invoices from your cleaning contractor.