The ATO and Airbnb

I just got an email from Airbnb which presumably would have gone to all Airbnb hosts. If you listen carefully, you could perhaps hear the sound of a collective 'Gulp.' I have always declared my Airbnb income, as I have all rental income, but lots of hosts would not.

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Hi Scott,

We're writing to you today with an update about your information.

As you are aware, Airbnb collects information that enables hosts and guests to use the Airbnb platform and payment services. In accordance with our terms of service, from time-to-time we may be legally required to share certain information with governmental authorities.

Airbnb is currently under legal notice by the Australian Taxation Office (ATO) to share information concerning your hosting. This is part of a data matching program published by the ATO, which requires sharing economy rental platforms to share information concerning their users, including for example: name, email address and telephone number.

The ATO provides guidance on its website for hosts and their tax obligations. You can also access your earnings information from your hosting dashboard. For further information regarding the ATO and its data matching programs, please contact the ATO via these channels.

Thanks,

The Airbnb Team

 

I mean, this isn't particularly new information right?

Or is the "you" in this email literally you specifically rather than Australian hosts on a whole?

 

It will be new information to a lot of hosts - not necessarily ones here. I suspect they are not just picking on me. That email from Airbnb would likely go out in batches to hosts - there must be over 50,000 in Australia.

 

Received the same email, you would be mad not to declare income.

 

Sting in the tail will be the CGT apportionment to PPOR AirBnBs when its time to move house. I don't think most hosts have factored that in either.

 

1. If its a full property rental then s118-192 may impact but
2. If its not subject to s118-192 then non-deductible costs add to the costbase BEFORE apportioning.

Those in group 2 may enjoy benefits by retaining diligent records of NON-DEDUCTIBLE property costs. eg Mary rents one room of her 2 room apt she lives in on a infrequent basis. Marys rates are $1200pa. Mary calculates a tax deduction for a part of the rates at $45. The other $1155 would increase the CGT costbase ....and so on. Mary's third element costs may also include interest, insurance (property not LL), rates etc.

In some cases its not uncommon to find the CGT is offset in full. One of the dangers with third element costs is few people record them as they arent aware until years later. For example your own home today may be fully occupied but all it takes is a Airbnb for one night of one room and you are subject to CGT apportioning. And all the past third element costs arent recorded.

Airbnb and loads of other sharing economy firms located here and overseas have been issued with s264 notices and the ATO has publicly said that they are collecting and datamatching the information. Firms like Airbnb are sending reminders because they obviiously want to be good corporate citizens and be seen as having users who are all happy and compliant. These notices are specific and will ask for designated information such as names, addresses, email address, property address, income earned, perhaps even dates etc. Generally speaking the ATO seeks to identify that a rental schedule exists for each address and that the reported rent is equal to or greater than the provider reports etc

The sharing economy and tax