If you manage or run an Airbnb or short-term rental property in Australia, you should speak to Stellar Accounts.

Income received from renting via the short-term property market is in 95% of case, investment income.

We recommend that you get the correct tax advice before you begin renting out your property or rooms within it.

Where To Put Airbnb Income on Tax Return Australia?

Airbnb income is investment income and needs to be included in the property owners individual tax returns. It is not business income, and you do not need an ABN.

The ATO says commercial residential premises include:

• hotels, motels, inns
• hostels, boarding houses
• caravan parks, camping grounds
• other establishments that provide similar services to the above.

More about commercial residential premises and GST on the ATO website here.

Not sure if your Rental is classed as a business?

To determine if you’re running a business, the below are a few things the ATO will take into consideration:
1. You have multiple properties you use as short-term rental accommodation
2. You do not live in the property
3. The rental properties are your ONLY source of income
4. You manage all aspects of the business yourself – ie manage bookings, arrange maintenance and cleaning etc

A situation that is likely to be deemed as running a business may be where you have multiple rooms, occupancies at the same time, similar to a motel or hotel, backpackers.

If you are not certain in your income in investment or business related, you can request a private ruling from the ATO.

If you’re still not sure about what type of income you’re generating, Stellar Accounts is always happy to help so please reach out to us here. We also share more information on the topic in this blog.

Why Choose Stellar Accounts for Your Airbnb Tax Advice

• We specialise in Airbnb and other short-term accommodation types. Plus, we understand what related expenses you can and cannot claim (5 deductions you can claim are outlined in this blog here!)
• We operate solely online and over the phone, so you can be anywhere in the country utilise our services
• As a privately-owned small business, we strive for the best results for each client
• 20+ years-experience in audit, financial accounting, taxation and bookkeeping

Click here to contact our fully qualified Tax Accountant and arrange a phone or zoom chat to prepare your tax return.

Stellar Accounts is an online accounting firm, specialising in soletraders, tradies, online retail and investment property/Airbnb rentals. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.

With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.

Check out our blog for the latest news – including tips and tricks for better managing your business or personal financials.