Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Australia tax professional before filing.
Australia · Australia · Short-term rental taxes
Short-Term Rental Taxes in Australia
All income from short-term rentals — whether through Airbnb, Stayz, Booking.com or direct bookings — must be declared in your annual Australian income tax return and is taxed at your marginal rate, with deductions available for expenses incurred in earning that income.
The 30-Second Answer
- All STR income is taxable: Every dollar earned from short-term rentals — nightly fees, cleaning charges, cancellation fees — must be declared in your individual income tax return lodged with the Australian Taxation Office (ATO).
- Marginal tax rates apply: Australia has no flat STR rate; income is added to your other earnings and taxed at your personal marginal rate (0%–45% plus 2% Medicare Levy), so higher earners pay more.
- Deductions are apportioned: You can claim expenses like interest, depreciation, platform fees, cleaning and insurance — but only for the proportion of time and floor area the property was genuinely rented or available for rent; private-use periods are excluded under TR 2026/1 and PCG 2026/2.
- State levies now apply in some states: Victoria's Short Stay Levy (7.5% of revenue) applies from 1 January 2025, and the ACT's Short-Term Rental Accommodation Levy (5%) applies from 1 July 2025 — platforms like Airbnb and Vrbo collect and remit these automatically for in-scope bookings.
Deductions
What You Can Claim as an Australian STR Host
Expenses must be incurred in earning rental income and apportioned for any private use or partial rental of the property.
Where a property is used privately for part of the year, all expenses must be apportioned between rental and private use. Only the rental-use proportion is deductible. Capital improvements are not immediately deductible — they are claimed as depreciation over time under Division 40 (plant & equipment) or Division 43 (capital works) of the ITAA 1997.
Filing Calendar
Key Dates & Filing Calendar
Australia's income tax year runs 1 July to 30 June. Most individuals lodge their own return by 31 October; using a registered tax agent extends this deadline.
Victoria's Short Stay Levy and the ACT's STRA Levy are collected and remitted by platforms (Airbnb, Vrbo) at the time of booking — hosts do not file separate returns for these levies when platforms collect on their behalf.
ATO — Key dates for individuals (ato.gov.au); ATO Rental Properties guide 2025
Tax Treatment
How STR Income Fits Into Your Australian Tax Return
Australia does not offer a separate simplified STR regime. All rental income is added to your assessable income and taxed at marginal rates. The key distinction is between a property rented exclusively vs. one with mixed private use.
Exclusively Rented Property
Full deductions, no private-use apportionment
- All eligible expenses are deductible in full against rental income.
- Loan interest, depreciation, management fees, insurance and repairs all claimed at 100%.
- Net rental income (or loss) is added to your other income and taxed at your marginal rate.
- Negative gearing losses can offset other income (e.g. salary) in the same year.
No income ceiling
Mixed-Use / Holiday Home
Expenses apportioned between rental and private use
- Expenses must be split: only the rental-use proportion is deductible.
- Apportionment is typically based on days rented vs. days of private use vs. days genuinely available for rent.
- ATO Taxation Ruling TR 2026/1 and PCG 2026/2 set out how the ATO assesses holiday home claims from 1 July 2026.
- Losses arising from the private-use portion cannot be offset against other income.
No income ceiling
Depreciation
Depreciation Deductions for Australian STR Properties
The ATO allows two types of depreciation deductions for rental properties: Division 40 (plant and equipment — removable assets) and Division 43 (capital works — the building structure and fixed improvements).
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building (Div 43 capital works) | 40 years (2.5% p.a.) | Applies to buildings constructed after 15 September 1987. Claimed on the construction cost, not purchase price. |
| Furniture & furnishings (Div 40) | 5–13 years (ATO effective life) | New furniture only — second-hand items purchased after 9 May 2017 cannot be depreciated by individual investors. |
| Appliances (fridge, washing machine, etc.) | 6–12 years (ATO effective life) | Must be new at time of purchase by the investor. Claimed under Division 40 plant & equipment rules. |
| Carpets & floor coverings | 8–10 years (ATO effective life) | Treated as plant & equipment (Div 40) if removable; structural flooring may be Div 43. |
A quantity surveyor's tax depreciation schedule is the most effective way to identify all available deductions over the life of the property. Depreciation must be apportioned for any private-use periods.
When you sell a rental property, any capital works (Div 43) deductions previously claimed reduce the property's cost base, potentially increasing your capital gains tax (CGT) liability. The 50% CGT discount applies to individuals who have held the property for more than 12 months.
State & Territory Levies
Short-Stay Levies: Victoria & ACT
Two Australian states/territories have introduced specific short-term rental levies collected by platforms. Other states do not currently have a dedicated STR levy.
Australia does not have a national tourist or lodging tax equivalent to Europe's taxe de séjour. However, Victoria and the ACT have introduced state-level short-stay levies that apply to STR bookings under a set number of nights.
Up to 7.5% depending on state
Vrbo Help — Australia: Where Vrbo collects and remits taxes (help.vrbo.com); State Revenue Office Victoria; ACT Revenue Office
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Victoria Short Stay Levy (7.5%) | Platforms (Airbnb, Vrbo) collect and remit automatically for in-scope bookings | For platform bookings, no separate filing required by the host. For direct bookings, the host may need to register and remit directly — check with the State Revenue Office Victoria. |
| ACT STRA Levy (5%) | Platforms (Airbnb, Vrbo) collect and remit for bookings made on or after 1 July 2025 | Platform-collected levy does not flow through your bank account as income. For direct bookings in the ACT, confirm your obligations with the ACT Revenue Office. |
| GST (10%) — if applicable | Host collects and remits if registered for GST (turnover ≥ $75,000) | Most individual STR hosts are below the GST registration threshold and do not charge GST. If you exceed $75,000 in annual turnover from all business activities, you must register. |
The Victoria Short Stay Levy and ACT STRA Levy are separate from income tax and are not deductible as a rental expense in the same way as council rates. Confirm your obligations for direct bookings with the relevant state revenue office.
Platforms
How Airbnb, Stayz & Vrbo Report Your Income
Under the ATO's Sharing Economy Reporting Regime (SERR), major platforms are required to report income earned by Australian hosts directly to the ATO — meaning the ATO can cross-check your tax return.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — reports to ATO under SERR | Yes — Victoria & ACT levies for in-scope bookings | Annual income summary available in host dashboard |
| Vrbo / Stayz | Yes — reports to ATO under SERR | Yes — Victoria Short Stay Levy & ACT STRA Levy | Annual earnings summary available in owner dashboard |
| Booking.com | Subject to SERR obligations — check current status | Not confirmed for Australian state levies — verify with platform | Transaction history available in extranet |
Hosting on Multiple Platforms?
If you list on Airbnb, Stayz and Booking.com simultaneously, each platform reports its own payments to the ATO under SERR. You must aggregate all income from all platforms and declare the total in your tax return. Keep separate records for each platform to reconcile against ATO data-matching.
Sharing Economy Reporting Regime (SERR)
Australia's SERR (equivalent to the OECD DAC7 standard) requires digital platforms to report income earned by Australian users to the ATO. If there is a mismatch between platform-reported income and your tax return, the ATO may contact you. Ensure your declared income matches or exceeds what platforms have reported.
Airbnb Australia Tax Guide 2025 (assets.airbnb.com); ATO — Sharing Economy Reporting Regime (ato.gov.au)
Illustrative P&L — Mixed-Use Holiday Home (50% rental use)
Example only. Assumes $30,000 gross rental income, property rented 50% of the year. Not tax advice.
Record-Keeping
Stay Audit-Ready: What Records to Keep
The ATO can review rental property claims up to 5 years after lodgment. Good records protect your deductions and demonstrate your apportionment calculations.
| Keep | How long | Why |
|---|---|---|
| All platform booking records & income statements (Airbnb, Vrbo, Stayz, direct) | 5 years after lodgment | ATO SERR data-matching means the ATO already has platform income data — your records must reconcile. |
| Receipts for all expenses (cleaning, repairs, insurance, rates, utilities, platform fees) | 5 years after lodgment | Required to substantiate every deduction claimed; ATO can disallow unsubstantiated claims. |
| Calendar or diary showing rental nights, private-use nights and available-for-rent nights | 5 years after lodgment | Essential for calculating the apportionment ratio under TR 2026/1 and PCG 2026/2 for mixed-use properties. |
| Tax depreciation schedule (quantity surveyor report) | Life of the property + 5 years | Supports Division 40 and Division 43 depreciation claims; also needed to calculate CGT cost base on sale. |
| Loan statements showing interest charged | 5 years after lodgment | Interest is one of the largest deductions — the ATO requires evidence of the rental-use proportion of borrowings. |
The ATO's Taxation Ruling TR 2026/1 (finalised May 2026) and Practical Compliance Guidelines PCG 2026/2 and PCG 2026/3 set out the ATO's current approach to holiday home and STR deduction claims. Hosts with mixed-use properties should review these documents or consult a registered tax agent.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for general educational purposes only and does not constitute tax advice. Tax rules change — always verify current rates and requirements with the ATO or a registered tax agent. The Victoria Short Stay Levy and ACT STRA Levy are new measures; confirm current collection arrangements with the relevant state revenue office and your booking platform.
- ATO — Rental income you must declare — ato.gov.au — last updated 21 May 2026. Confirms all STR income must be declared.
- ATO — Rental expenses (2025 guide) — ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses — outlines deductible and non-deductible rental expenses.
- Airbnb Australia Tax Guide 2025 — assets.airbnb.com — prepared by independent third-party firm, October 2024. Covers income tax, CGT, GST and SERR obligations.
- Bentleys — Airbnb & STR Tax Guide 2026 — bentleys.com.au — June 2026. Covers TR 2026/1, PCG 2026/2, PCG 2026/3 and ATO compliance focus areas.
- Vrbo Help — Australia lodging taxes — help.vrbo.com/articles/vrbo-stay-taxes-lodging-taxes-australia — confirms Victoria 7.5% Short Stay Levy (from 1 Jan 2025) and ACT 5% STRA Levy (from 1 Jul 2025).
- Lawpath — Tax deductions for Airbnb hosts in Australia — lawpath.com.au — July 2026. Covers apportionment rules and deductible expense categories.
- H&R Block — Tax tips for Airbnb hosts — hrblock.com.au — last updated 22 May 2026. Practical guidance on rental income, deductions and apportionment.
- ATO — Sharing Economy Reporting Regime (SERR) — ato.gov.au — platform reporting obligations for digital sharing economy platforms operating in Australia.
Questions
Frequently Asked Questions — Australian STR Taxes
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