Tax office puts Airbnb owners on notice amid massive tax crackdown

Thousands of Aussie Airbnb owners could have their details shared with the ATO — and the move could push up prices for all of us.

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

Yesterday, 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 on the sharing economy.

The email said “from time-to-time we may be legally required to share certain information with governmental authorities,” according to The Daily Telegraph.

“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” as part of an ATO data-matching program “which requires sharing economy rental platforms to share information concerning their users, including, for example: name, address and telephone number”.

The move is supported by Tourism Accommodation Australia, which shared the news on Twitter, adding it came after months of campaigning by the body.

#ATO's move on @airbnb follows years of advocacy by #TAAhttps://t.co/ZtqVPejCUZ #hotels #accommodation #tourism @ferg1961 @BradleyBWoods @AdeleLausberg @Hoges5 @gmTHA

— TourismAccom (@TourismAccom) October 10, 2019

The crackdown is aimed at the millions of Australians earning cash through the gig economy, many of whom the ATO suspects aren’t paying their fair share of tax.

The organisation believes many sharing economy 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.

“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,” the ATO website states.

“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 move is part of a massive sharing economy crackdown. Picture: AFP Photo/Lionel Bonaventure

“There is an increase in people renting homes, apartments, units or rooms via platform sharing sites to generate income. The increased use of these sites means there is an increased risk of people not understanding their tax obligations when it comes to renting out part or all of their property.”

Those who fall foul of the ATO by failing to report their Airbnb income could face harsh fines and penalties or even time behind bars.

It is also believed the new Airbnb blitz could lead to an increase in prices 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 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.