Renting out a room

Hi all,

I am moving into my PPOR in February when I settle.

It is a 2 bedroom unit.

I am a first home buyer and will be claiming the stamp duty benefits.

I would be considering renting the 2nd bedroom out.

What are the tax implications that I need to be aware of (if any)?

Thanks in advance

 

Don’t tell anybody = no implications

 

Will it be a friend etc, just renting out the second room?

 

Yep a friend

 

I did something similar with my first PPOR. Treated the person as a boarder. Paid me cash weekly, and we just went halves with bills. Didn’t tell anyone.

 

You won’t need to. If you’re both vaccinated, The Government will know.

 

OP- should have mentioned, I checked with my accountant and for my circumstances, I was able to treat the person as a border. Board income is not reportable according to ATO.

 

Don’t get your housemate to get their mail delivered to you. Had a friend who had to pay their stamp duty back after getting the full stamp duty concession because they rented out a room within the first 12 months which you can’t do.

 

I mean 5G

 

Don’t worry, I got the joke. Lol

 

A family member is considered board in some instances. Non family members will not be. However the payments must relate to all of the services, AND food and use of accomodation and involve the person utilising existing furnishings. In circumstances where the borading is not met all the income is assesssable. Some deductions may be allowed against this and the rate chargd may affect the degree of deductibility. Non-family members will also impact the CGT exemption for a portion (likely 50%) of the home.