What are my taxation obligations?
Do I pay Tax on my Rental Fees?
If you decide to rent out your holiday home, the rental you receive is typically regarded as assessable income. You are therefore required to declare your rental income in your income tax return. Depending on the expenses that you incur operating your holiday home, you may be able to claim certain deductions for related costs, such as certain repairs and maintenance, or the interest expense (or partial interest) on a loan used to purchase the holiday home. If you rent out your holiday home for only certain periods of the year, you may need to apportion expenses per ATO guidelines.
For more information visit: https://www.ato.gov.au/General/Property/In-detail/Holiday-homes
Does Stayz charge GST?
Where applicable, Stayz fees have a Goods & Services Tax (GST) component, which is highlighted in the invoices that you receive.
Selling my Holiday Rental Home
If you have lived in prior to, or subsequently decide to live in your holiday rental home, you will need to consider the application of capital gains tax (CGT) should you decide to subsequently sell your holiday home. You may not be able to claim a full exemption from CGT and therefore some apportionment may be required.
Do I have to register for GST?
Depending on your individual circumstances (level of turnover, operations etc.) you may need to consider whether GST applies to you. Typically, GST does not apply to rent from "residential premises" therefore if you lease residential premises, you should not be liable for GST on the rent/accommodation charges, regardless of the length of the stay. GST may apply to supplies of accommodation in "commercial residential premises". If you lease commercial residential premises, you may be liable for GST on the rent/accommodation charges.
It can be a fine line for whether a property is considered either “residential” or “commercial residential”. If you are unsure as to what applies for your property, we recommend that you check with your tax agent/financial advisor or ATO. Stayz cannot provide advice on these issues.
For further information as to whether or not a property is residential premises or commercial residential premises, please refer to the ATO website via the following link:
Record Keeping, Documentation & Owner Information
You will need to ensure that you maintain adequate financial records for your holiday home rentals, especially if you plan on claiming certain expenditure as a deduction for taxation purposes. You might aim as a minimum to include a log book outlining when the holiday home was available on the open market, when it was provided to friends, family, and other associates, and when it was rented to strangers at full market value. You may also consider a system of recording mortgage repayments, rates, bills, maintenance, cleaning and other valid receipts.
Finally, you may also consider obtaining accounting software to keep all your figures in one digital file.
In order to facilitate the use of the Stayz platform by owners and guests, we routinely collect information in accordance with owner terms and conditions. This enables us to provide our services including processing payments, detecting and preventing fraud as well as amplifying the booking opportunities for our owners.
We recommend that owners carefully consider your circumstances to ensure you are up to date with any applicable taxation obligations, including relating to goods and services tax (GST) and income tax. If you are uncertain of your obligations, you should consider seeking professional advice. Useful information about potential tax obligations that may arise in the sharing economy can be found here at the Australian Taxation Office website.