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Renting out all or part of your home

What you need to know if you rent out part of your home or your entire home through the sharing economy.

Last updated 11 June 2019

When you rent out all or part of your residential house or unit through a digital platform, like Airbnb, Home Away or Flipkey, you:

  • need to keep records of all income earned and declare it in your income tax return
  • need to keep records of expenses you can claim as deductions
  • don't need to pay GST on amounts of residential rent you earn.

If you are carrying on an enterprise renting out commercial residential premises, such as a commercial boarding house, you will have different income tax and GST obligations. However, just because you provide services in addition to providing a room (for example, provide breakfast or cleaning services) doesn’t mean that you are providing ‘board’ – or anything else other than renting out your space. It is rare for someone to be carrying on a business because they are renting out a property.

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GST doesn’t apply to residential rent, however you may need to report and pay GST in some situations.

Income you earn from renting out a room or your house needs to be reported. You can make claims for associated expenses.

Renting out a room or your home? Learn how capital gains tax applies when you sell your home.