However, you need to do your sums.  What you need to be aware of:

1. Gross Airbnb income is included as assessable income for the host. — You are able to claim a deduction for substantiated expenses relating to the provision Airbnb accommodation such as the 3% service fee by Airbnb and holdings costs ie interest, and land tax) and non-holding costs (utility costs, repairs, and decline in value
2. Partial main residence exemption on the sale of a home.

Taxpayers who live in a dwelling and use part of the dwelling to provide Airbnb accommodation should be aware that only a partial main residence exemption is available.  What this means is that when you come to sell your property there will be a capital gain/loss calculation for the extent to which the taxpayer’s home was used for income producing purposes. This is generally determined on the floor area and the period over which the home was used to produce income.

If you would like to know more please call Hart Partners today on 03 9600 3220.

Airbnb uses technology to match people looking for short term accommodation with homeowners (host) who are looking to earning extra money from renting out all or part of their house. For instance, you may live close to the Melbourne Grand Prix and think that you may take advantage of the high rent during this time and also an opportunity to get out of the area during this busy time.