It looks like Airbnbers may be hit with land tax depending upon the arrangements which are in place for wach individual property. Linky It may not be clear cut or easy to determine in some cases but in others it becomes quite obvious. Are these arrangements going to impact on your model? Will it cause you to reconsider and move back to long term leasing? @Gockie @Terry_w @Paul@PFI @Depreciator @KateAshmor @thatbum Do you call your accommodation your ppor? Will you be partially subject to cgt on your ppor? (Which is a topic that hasn't been raised).
I have a guy staying a couple of nights at my PPOR in exchange for doing Electrical work at my place so I can't imagine it would be treated any differently to an au pair arrangement... Other than that my other airbnb properties are subject to land tax assessment just like any other IPs.
All property that produces income is likely to be impacted by land tax where the owner exceeds the relevant state threshold for unimproved land value. Producing income isnt the taxing issue. Its that its not exempt. Residing in your own home makes it exempt. However the Vic and NSW surcharge can also apply to your own home too (for non-resident owners) A property cannot be your PPOR for land tax puproses unless you also reside in (part) of it. There are VERY limited exemptions for moving out etc. IMO its one of the benefits of using a tax adviser. They can give you personal advice.
In NSW if it is the main residence that is being AirBNBed and it is only one room the business use can be disregarded - Cl 5 of Schedule 1A LMA. if using more than 2 rooms the PPOR exemption may not apply.
