ATO targets local Airbnb hosts

In 2016, the ATO will focus in on landlords who advertise on websites like Airbnb to avoid paying tax

The ATO is targeting airbnb hosts in a crackdown on undeclared income Chris Whitrod has a B&B in Stuart Park , Chris is a local host who does declare.

AIRBNB hosts will be targeted by the Australian Taxation Office this year if they fail to declare any income generated through the sharing website.

Last May the ATO released advice on the implications of the sharing economy, confirming the existing rules apply regardless of how a rental house or room is advertised.

H & R Block tax communications director Mark Chapman said the advice showed the tax office planned to look into the website’s users.

“The ATO has access to numerous sources of third party data and the Airbnb site itself, which lists the properties and their addresses/owners, making it a relatively easy exercise for them to track who is paying tax on the rental,” he said.

Darwin local Chris Whitrod has advertised his property in Stuart Park on Airbnb since 2014. He chose to go through the travel company rather than a normal rental situation because it meant a more distant relationship between landlord and tenant.

Since beginning advertising, Mr Whitrod has been careful with his tax returns.

“We’ve always declared it, because I’m self-employed and that already puts a target on my back with the ATO,” he said. “It does make it expensive when you get taxed, but we also declare all of the expenses relating to the unit, and it gets offset as it normally would with a normal rental.”

The easiest way for people who are renting accommodation to stay inside the law is to keep good records throughout the year.

Airbnb also makes tax time easier for hosts by providing a summary earnings every year.

“We encourage our hosts to comply with all Australian tax laws and pay all required taxes,” Airbnb Australia spokesman Dylan Smith said.

Mr Chapman said he believed the focus would remain on commercial landlords, rather than flatsharers.

“If you’re renting out a room in your place at a commercial rent, then it’s taxable and you need to declare it, but if you’re renting a room to a friend or family member for a nominal amount, then you should be okay,” Mr Chapman said.

“If you’re ever unsure though, check with the ATO or an accountant to make sure you’re doing the right thing.”

Across Australia, 1.8 million people own investment properties, including places advertised on sharing websites like Airbnb.