We consider the effect of electron-electron interactions on a voltage biased quantum point contact in the tunneling regime used as a detector of a nearby qubit. We model the leads of the quantum point contact as Luttinger liquids, incorporate the effects of finite temperature and analyze the detection-induced decoherence rate and the detector efficiency, $Q$. We find that interactions generically reduce the induced decoherence along with the detector's efficiency, and strongly affect the relative strength of the decoherence induced by tunneling and that induced by interactions with the local density. With increasing interaction strength, the regime of quantum limited detection ($Q=1$) is shifted to increasingly lower temperatures or higher bias voltages respectively. For small to moderate interaction strengths, $Q$ is a monotonously decreasing function of temperature as in the non-interacting case. Surprisingly, for sufficiently strong interactions we identify an intermediate temperature regime where the efficiency of the detector increases with rising temperature.