Tea tree is generally safe to apply directly to skin, but do an allergy test first. If you find it irritating, dilute it before use. It is a fast and easy way to treat insect bites and any type of skin fungus. Apply a few drops neat, or use a clean compress to apply to the skin. Use a few drops in warm water as a gargle and add tea tree to the bathroom soap dispenser to kill germs. Combine tea tree with vinegar and baking soda for non-toxic household cleaning.