Does Airbnb still make sense with the new 7.5 per cent income tax?

In this episode we cover if it still makes sense to rent a property on a short-term basis, plus tips and tricks for prospective owners of Airbnb properties.

Cerulean Whitsundays is available to rent. Picture: AirBnb

Victoria is the first Australian state to legislate a levy on revenue generated from short term accommodation platforms such as Airbnb and Stayz.

The 7.5 per cent levy will commence from January 1 next year and is an attempt to tackle the ongoing rental crisis, which many politicians blame on the rise in popularity of short-term letting platforms such as Airbnb.

Although Victoria will be the first to implement an ‘Airbnb tax’, other states have already flagged their intention to review, and most likely implement a similar system.

In this show we cover whether this is fair or another case of government meddling, if it still makes sense to rent a property on a short-term basis, tips and tricks for prospective owners of Airbnb properties, and when is the ‘right’ time to pay down investment property debt?

Quirin Schwaighofer, co-founder of short term accommodation management company MadeComfy, joins James Gerrard founder of www.financialadvisor.com.au on today’s show.