Airbnb Owners Be Warned as Tax Office Enforces a Massive Crackdown

The Australian Taxation Office (ATO) has put Australian Airbnb hosts on notice, warning the popular platform was now part of a wider tax evasion crackdown.

Airbnb is is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. The company does not own any of the real estate listings, nor does it host events; it acts as a broker, receiving commissions from each booking.

The hugely popular home sharing platform emailed almost 200,000 Australian Airbnb hosts to warn them their details would be shared with the ATO as part of the tax office’s new blitz.

Those who have not claimed income or have made false claims could face harsh fines or even time behind bars. It is also believed the tax crackdown will lead to Airbnb price increases for the platform’s customers, as some property owners may raise their prices to counteract the amount of tax they will be required to pay on their earnings.

The email states

From time-to-time we may be legally required to share certain information with governmental authorities, Airbnb is currently under legal notice by the Australian Taxation Office (ATO) to share information concerning your hosting activity for the period from 1 January to 30 June 2019”

The Australian Tax Office  believes many workers — such as Airbnb hosts, ride sharing app drivers and vehicle share providers — aren’t declaring that portion of their income, which many consider to be a hobby.

The Australian Tax Office  website states.

“We believe that some people using sharing economy platforms are failing to report their income, either on purpose or because they assume their level of activity constitutes a hobby and doesn’t require reporting,”Our focus is to ensure that people renting a room, their home while they’re away or an investment property through web or app based platforms in the sharing economy understand their obligations.”

The ATO is also believed to be particularly concerned about taxpayers claiming the full capital gains tax main residence exemption when part of their main residence has been rented out through Airbnb.

The law prevents a full CGT exemption where part of a main residence has been used to earn income.

Keep up to date

get updates on properties, news and more across Melbourne

More To Explore

Uncategorised

Living in apartments for any amount of time can get you feeling cooped up, hemmed in, and craving the outdoors. Humans and nature are inseparable, no matter how much we’ve evolved. The earth, sky, sunshine, greenery, and air calm and refresh us. One of the most straightforward solutions if you can’t go out to nature

Uncategorised

5 Key Benefits of Apartments Over Other Types of Living

Photo by Bench Accounting on Unsplash Apartment living has become popular with people the world over. With space in cities becoming ever scarcer, the popularity of apartment living is not expected to dwindle any time soon. Australia’s apartment scene has exploded over the past few decades. The 2016 census report on apartment living notes that apartment occupancy surged

Financial

7 Steps To Take To Improve Your Credit Score

Credit scores determine the ease with which you can access credit facilities like loans, credit cards, and mortgages. Having a low credit score can be a challenging experience, especially at times when you need to access said credit but can’t. Loans or credit cards can be lifesavers and can get you out of a tight

Looking for a property?

Search across Melbourne with Buy Melbourne Apartments

Copyright Buy Melbourne Apartments 2019

Built with by Idea Engine

Sign in to see your favourite properties

Save your favourite properties and access them anytime. Your shortlisted properties will appear on this page.