Don’t ask to pay in Cash!

Did you know there is a government crackdown on cash payments to tradies? If you pay your home cleaner in cash you may be breaking the law. All payments to persons employed in your home with no ABN (and other customers) are technically your staff according to the ATO. They should be paid with a wage-slip, tax deducted and super placed into a fund. Sounds complicated right?

Companies that do the right thing and employ their staff under the cleaning operations award have to pay the minimum wage which is currently $25.26 per hour for a casual worker, plus Super at 9.5% and Q-leave an industry mandatory long service fund of 2%. Staff using their vehicle must be recompenses for time travelled between jobs and Kilometers used at 78c per KM. This translates to a cost hourly rate of around $31 per hour. Cleaners who take significant amounts of cash may be liable for tax fraud and centre-link fraud if every cent is not declared.

The cash cleaning industry reduces the ‘real price” of cleaning to a ridiculous rate that fair go Aussie companies cannot compete with. If we add a 33% profit markup to $31 per hour the resulting price is $42 per hour…plus GST so around the $50 is then the least you should expect to pay per hour for daytime cleaning.

At both sites of our company we try to meet the market but have had to rely heavily on government grants to keep us afloat as costs spiral and payments are on the decline.