Standard costs for home-based services
Home-based service providers meeting certain criteria can choose to use standard costs instead of their actual expenses when calculating their taxable income. Inland Revenue reviews the standard costs annually for movements in the Consumers Price Index.
These determinations set the standard costs for home-based service providers.
- Childcare providers
- Private boarding providers
- Short-stay accommodation providers
- Home share care providers
Amounts calculated in accordance with these standard cost household service determinations are treated as expenditure incurred in providing the relevant services. For any income year, a taxpayer can choose to use these standard costs instead of their actual expenses, provided the criteria in the determinations are met.
Childcare providers
DET 09/02 Standard-cost household service for childcare providers
This Determination may be relevant to taxpayers who provide childcare in their home at any time during the income year. It sets out the standard costs that may be treated as expenditure incurred in deriving income from providing the childcare.
Changes/clarifications to DET 09/02: Standard-Cost Household Service for Childcare Providers (effective from 1 April 2011 and applies to 2012 and subsequent income years).
Annual costs
Earlier annual costs for childcare providers are available here
Private boarding providers
DET 19/01 Standard-cost household service for private boarding service providers
This Determination may be relevant to taxpayers who provide private boarding services in their home, if they have no more than four boarders at any time during the income year. It sets out the standard costs that may be treated as expenditure incurred in deriving income from providing the boarding accommodation.
DET 19/01 calculator worksheet
This worksheet helps calculate the boarding services income to be included in a tax return when using the standard cost rates for boarding services.
Annual costs
Earlier annual costs for private boarding service providers are available here
Short-stay accommodation providers
DET 19/02 Standard-cost household service for short-stay accommodation providers
This Determination may be relevant to taxpayers who provide short-stay accommodation services in their home, if they do not rent out rooms for more than 100 nights in the year. It sets standard costs that may be treated as expenditure incurred in deriving income from providing the short-stay accommodation service.
Annual costs
Earlier annual costs for short-stay accommodation providers are available here
Home share care providers
DET 9/01 Standard-cost household service for home share care service providers
This Determination is relevant to taxpayers who provide home share care services in their own domestic accommodation via the Presbyterian Support (Upper South Island) Homeshare programme operating in the Mid Canterbury area. It sets out the standard costs that may be treated as expenditure incurred in deriving income from providing those home share care services.