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ATO has its sights on short-term rentals

Do you have a short-term rental property? A home, room, apartment or unit that you rent out for short holiday stays, an Airbnb, or temporary lodgings for students or family? If yes, the ATO probably has you in their sights.

According to the ATO, this year they will be using extensive data matching to find those taxpayers who receive income from short-term rentals. They’ll do this using information such as listing dates, enquiry and booking rates, prices charged or quoted per night from online platform sharing sites to find those taxpayers not meeting their reporting and tax payment obligations.

The ATO’s new data matching system now results in all agents asking all clients if they have, or have ever had, a short-term rental on any property that they own, even their own home. And for those who have rental properties and are already complying, they will find their tax return pre-filled with the relevant data.

You might like to familiarise yourself with the ATO’s rental property recommendations for expenses and allowances in general. If you’re unsure about you’re the implications of your short-term rental, or you would like to find out how to share your spare rooms tax free, chat with the experts today