Airbnb income is taxable in Australia. Whether you rent a spare room, a holiday house, or your main home while you travel, the income must be declared. In exchange, you can claim a proportion of your property’s running costs as deductions. The tax treatment depends significantly on whether you are renting part of your home, the whole home, or a separate investment property.
Declaring Airbnb Income
All income received from Airbnb (or similar platforms — Stayz, Booking.com, VRBO) is assessable income. It must be included on your tax return for the year in which it is received.
The ATO has data-sharing arrangements with rental platforms and actively matches host income against return data.
Claiming Expenses — The Apportionment Rules
You can only claim expenses for the periods the property was used for short-term rental (or genuinely listed and available for rental). The apportionment calculation depends on your specific situation:
| Scenario | How to apportion |
|---|---|
| Renting a spare room in your home year-round | Proportion of floor area × proportion of time available for rental |
| Renting your entire home for part of the year | Proportion of time available for Airbnb ÷ total days in year |
| Investment property on Airbnb full-time | All expenses deductible (as for standard rental) |
| Investment property used personally sometimes | Proportion of rental days ÷ total days used |
What You Can Claim
For the rental period/proportion, the same expenses as standard rental property apply:
- Interest on mortgage (apportioned)
- Council rates, water charges (apportioned)
- Insurance (apportioned)
- Repairs and maintenance (apportioned — or in full if specifically for rental)
- Cleaning costs (deductible — directly related to rental) | Cleaning between guests | Fully deductible |
- Airbnb platform fees and commissions (fully deductible against rental income)
- Amenities and supplies provided to guests (apportioned)
- Depreciation on furnishings used for rental (apportioned)
When You Cannot Claim the Full Cost
- Expenses during periods the property was used privately or simply vacant (not listed)
- Mortgage principal repayments — never deductible
- Capital improvements — depreciated, not immediately deductible
CGT — The Main Residence Exemption Problem
This is the most significant tax issue for people renting their main home on Airbnb:
If your home is your main residence, it is normally fully exempt from CGT when you sell it. However, once you use part of the home to produce income (Airbnb rental), you lose part of the main residence CGT exemption for the period the home was used for income production.
The CGT adjustment is calculated based on:
- The proportion of the home used for rental (floor area ratio)
- The proportion of the ownership period the home was rented
For those who occasionally rent a room, the CGT impact may be small. For those who regularly rent out their entire home, the impact can be significant.
Six-year rule: The six-year absence rule (where you can rent out your main residence for up to 6 years and still claim the main residence exemption) applies to the entire dwelling — not to part of a dwelling. Renting a single room does not trigger or benefit from this rule in the same way.
GST for Airbnb Hosts
Short-term residential rental (Airbnb) is generally not subject to GST if:
- Your total annual taxable turnover is below $75,000
- You are not otherwise registered for GST
If your total business income (Airbnb plus any other business) exceeds $75,000, you may need to register for GST. Residential rental income is input-taxed (not subject to GST), but short-term rental (less than 28 days per booking) may be treated differently — seek specialist advice.
Frequently Asked Questions
I only rented my home for 30 nights last year. Do I still need to declare the income? Yes. All Airbnb income is assessable regardless of the number of nights. You will also be entitled to claim a proportional share of expenses for those 30 nights.
My Airbnb earnings were less than $18,200. Do I still pay tax? The tax-free threshold applies to your total taxable income (all sources combined). Airbnb income is added to your wages, salary, or other income. If the total exceeds $18,200, the Airbnb income contributes to a tax liability — even if the Airbnb income alone would be below the threshold.
Do I need to keep records? Yes. Keep all Airbnb payout statements, expense receipts, and a log of the nights the property was available and actually rented. The ATO may request this if your return is reviewed.
Does renting my home affect my first home owner status or any grants? Renting your home on Airbnb after initial purchase generally does not affect FHOG status as long as the property was your principal place of residence for the required period. Check your state’s specific FHOG conditions.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.