Accounting for Airbnb

Accounting for Airbnb: What Hosts Need to Know

Renting out a property through Airbnb can be a great way to generate extra income, whether it’s a spare room, a holiday home, or an investment property. However, Airbnb income comes with specific accounting and tax obligations that are often misunderstood. Getting it right from the start can save you time, money, and stress down the track.

Here’s what Airbnb hosts should know when it comes to accounting and tax.

Airbnb Income Is Taxable

All income earned from Airbnb must be declared in your tax return. This includes:

• Nightly accommodation fees
  
• Cleaning fees charged to guests
  
• Extra charges (such as late check-out or additional services)
  

Airbnb may provide annual income summaries, but these should be cross-checked against your own records to ensure accuracy.

What Expenses Can You Claim?

If you’re earning assessable income, you’re generally entitled to claim expenses related to that income. Common deductible expenses include:

• Cleaning and management fees
  
• Airbnb service fees
  
• Council rates and water charges
  
• Electricity, gas, and internet
  
• Insurance
  
• Repairs and maintenance
  
• Depreciation on furniture, appliances, and fittings
  
• Loan interest (for investment properties)
  

If the property is only rented out part of the year or partly used privately, expenses must be apportioned accordingly.

Private Use and Apportionment

One of the most common issues we see is incorrect apportionment. If you:

• Stay in the property yourself
  
• Rent it out only during certain periods
  
• Rent out a room in your own home
  

You must apportion income and expenses based on:

• The number of days the property is available for rent
  
• The portion of the property used to earn income
  

Accurate records are essential to support your calculations.

GST and Airbnb

In most cases, Airbnb income from residential accommodation is input taxed, meaning:

• You don’t charge GST on the rent
  
• You generally can’t claim GST credits on related expenses
  

However, different rules may apply if:

• You provide short-term accommodation with hotel-like services
  
• You operate multiple properties or a commercial enterprise
  

GST treatment can be complex, so professional advice is strongly recommended.

Capital Gains Tax Considerations

Using a property for Airbnb can have capital gains tax (CGT) implications, particularly if:

• It was previously your main residence
  
• You rent out part of your home
  

Renting out a property through Airbnb may reduce your main residence CGT exemption when you sell. This is an area where early advice can make a significant difference.

Record Keeping and Compliance

The ATO has increased its focus on short-term accommodation income, with data matching from platforms like Airbnb. To stay compliant, you should keep:

• Detailed income records
  
• Invoices and receipts for expenses
  
• Booking calendars showing availability and private use
  
• Depreciation schedules where applicable
  

Good record keeping not only supports your claims but also simplifies tax time.

How We Can Help

Accounting for Airbnb is not the same as standard rental properties. We work with Airbnb hosts to:

• Ensure income is reported correctly
  
• Maximise legitimate deductions
  
• Handle apportionment accurately
  
• Understand GST and CGT implications
  
• Set up systems that make ongoing compliance easier
  

If you’re earning income through Airbnb — or considering it — getting the right advice early can help you avoid costly mistakes and make the most of your investment.

This information is general in nature and does not constitute personal financial or tax advice.