Renting out your place in Manly, Freshwater or Palm Beach on Airbnb or a similar platform? The ATO already knows.
Since 1 July 2023, short-term accommodation platforms have had to report their hosts’ transactions directly to the ATO under the Sharing Economy Reporting Regime. That data includes details such as the property address and the number of nights booked. The ATO can match it against what you report in your tax return.
The most common mistakes we see
- Claiming a full year of expenses for a summer-only rental. If the property was only rented for part of the year, expenses generally need to be apportioned.
- Forgetting about private use. Weeks when you, your family or friends stayed (or stayed for free) are private use, not rental.
- Claiming for weeks the property wasn’t genuinely available. Blocked-out dates, or pricing well above the market, can limit what you can claim.
- Not thinking about capital gains tax. Renting out your home can reduce your main residence CGT exemption when you eventually sell.
- Missing income. Cleaning fees and other amounts collected through the platform are part of your rental income.
Planning to list your place this summer?
The Northern Beaches has one of Sydney’s busiest summer rental markets. A quick conversation before the first guest arrives can help you keep the right records, claim what you’re entitled to, and avoid surprises when you sell.
See our tax and accounting services or get in touch with our team in Dee Why.
This article is general information only and isn’t personal tax advice. Please speak with us about your own circumstances.
