The Australian Taxation Office (ATO) is to clamp down on householders renting out their homes or rooms on websites like Airbnb without paying tax on the rent.
According to Assistant Taxation Commissioner, Kath Anderson it will do this by launching an extensive data-matching program to identify taxpayers receiving income from short term rentals.
Ms Anderson said information from online platform sharing sites for around 190,000 people will be examined to identify taxpayers who have left out rental income and over-claimed deductions.
She said that in 2016, approximately 2.1 million individuals reported rental income of $42 billion.
“Rental properties are high on the ATO’s priority list given that the rental market is a significant share of the economy, and there is evidence that some taxpayers are getting it wrong,” Ms Anderson said.
“The availability of short stay rentals has exploded thanks to the online revolution. With the growing number of homes, apartments, units and rooms available via accommodation sharing sites, there is a real risk some people may not understand their tax obligations.”
She said the ATO would match data provided by online rental platforms and their financial institutions against ATO records.
“The ATO often allows taxpayers who have made genuine errors to amend their returns without penalty, but deliberate attempts to avoid tax on rental income could see the ATO take action,” Ms Anderson said.
“While the sharing economy has changed the way we do business, it hasn’t changed the ATO’s definition of income.
“Any income from renting all or part of a house or unit needs to be declared, even if it is just a one-off. There is no such thing as a rental ‘hobby’.”
She said deductions could be claimed only for the periods the property was rented out or was genuinely available for rent.
