As the sharing economy continues to grow, many Australians are turning their properties into income-generating assets through Airbnb. But when do you need to register for GST as an Airbnb host? Let’s break it down.
Key GST Thresholds for Airbnb Hosts:
- The $75,000 Rule
- You must register for GST if your annual turnover from all business activities (including Airbnb) reaches or exceeds $75,000.
- This threshold applies to your combined business income, not just Airbnb earnings.
- Commercial Residential Premises vs. Residential Premises
- If you’re renting out a room in your home or your entire residential property: GST generally doesn’t apply.
- If you’re operating like a commercial accommodation provider (similar to a hotel or serviced apartment): Different rules may apply.
Real-Life Example: Meet Sarah – A Typical Airbnb Host
Sarah owns a two-bedroom apartment in Sydney that she lists on Airbnb. Here’s her annual income breakdown:
- Airbnb rental income: $45,000
- Income from her online business: $35,000
- Total annual income: $80,000
In this case, Sarah needs to register for GST because her combined business income exceeds the $75,000 threshold. She’ll need to:
- Register for GST
- Charge GST on her Airbnb rentals
- Submit regular Business Activity Statements (BAS)
- Keep detailed records of all income and expenses
Important Considerations:
- Keep track of all your business income sources
- Monitor your annual turnover closely
- Consult with a tax professional when approaching the threshold
- Maintain detailed records of all transactions
- Does the state you’re in have a “Short Stay Tax”
Need Help?
If you’re unsure about your GST obligations or need assistance with registration and compliance, contact I Do Tax. Our team of experienced professionals can help you navigate the complexities of GST requirements for your Airbnb business.
Contact us:
- Phone: 1800 955 811
- Email: info@idotax.com.au
Remember: It’s better to be proactive about your GST obligations than to face penalties for non-compliance later.