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  • Renting out a car parking space

    If you rent out a car parking space through apps like Spacer, Carparkit or similar, the payments you receive are assessable income. This means:

    • you must declare the income in your tax return
    • you can claim deductions for associated expenses.

    You may also need to pay CGT when you sell the parking space or property it's attached to.

    Registering for an ABN and GST

    If you rent out a car parking space, it can mean that you are running an enterprise. You will need to get an ABN and register for GST if either:

    • your turnover is, or is projected to be, $75,000 or more per year renting out the car parking space or spaces
    • your turnover is, or is projected to be, $75,000 or more a year for all of the goods and services you provide while carrying on a number of enterprises.

    If you have an existing enterprise and are registered for GST, you need to account for GST on amounts received for renting out your car parking space.

    See also:

    Example: how GST and income tax applies

    John is a painter and is registered for GST. He owns a residential unit in a CBD location with a car parking space in the same building. John decides to rent the car parking space out for $330 a week through a website (run by a GST registered Australian facilitator) that arranges for the space to be rented periodically. The supply of the car space is subject to GST. John will need to include the GST on this rent in his BAS.

    John receives $297 after the facilitator takes out their $33 GST inclusive fee. John must pay GST on the full $330 ($30 GST). John may claim a GST credit for the $3 GST included in the facilitator’s commission.

    John also includes the income, less the amount of GST ($300 per week) from renting out his car parking space in his tax return. He can claim a deduction for the fee, less the GST credit ($30 per week) charged by the facilitator and may claim other deductions, such as a percentage of his mortgage.

    End of example

    See also:

    Last modified: 05 Sep 2017QC 53229