How To Lodge An Airbnb Tax Return In Australia

By Jess Murray CPA, Registered Tax Agent & Airbnb Tax Specialist

Tax time is when many Airbnb hosts start asking the same questions: How do I lodge my Airbnb tax return? Should I use MyTax, or is it better to use an accountant? And what does the ATO actually expect?

If you’ve kept reasonable records during the year, the reality is that lodging an Airbnb tax return is usually far more straightforward than people fear. The hard work happens during the year through good bookkeeping. Lodgement itself is mainly about pulling those numbers together and entering them correctly into the tax return.

There are two ways to lodge a tax return for Airbnb in Australia. You can lodge it yourself using MyTax through your MyGov account, or you can lodge through a registered tax agent. Each approach has different benefits. The right choice for you will depend on your Airbnb setup, your confidence with tax rules, and how much support you want at lodgement time. 

This article explains the key differences between using MyTax and using an accountant to lodge your Airbnb tax return, and how to decide which approach is right for you. We’ll also cover Airbnb tax return due dates and payment dates, what you need to prepare before lodging, and common traps that catch hosts out, especially when lodging their first tax return for Airbnb.

EasyBnbTax is an Australian tax firm. We’ve written this article specifically for Aussie Airbnb hosts, using Australian tax law and Australian Tax Office requirements for Airbnb. If you’re based in a different country, this information won’t apply to you.

Table of Contents

• Airbnb Tax Return Basics >
• How Is Airbnb Tax Calculated In Australia? >
• When Is My Airbnb Tax Return Due? >
• MyTax vs Accountant: Which Is Better for Airbnb Hosts? >
• How Do I Prepare For My Airbnb Tax Return? >
• Option 1: How to Lodge Your Airbnb Tax Return Using MyTax >
• Option 2: Using an Accountant to Lodge Your Airbnb Tax Return >
• What If I Can’t Afford My Tax Bill? >
• Common Airbnb Tax Lodgement Mistakes to Avoid >
• Airbnb Tax Return FAQ’s >

Airbnb Tax Return Basics

Before you dive into lodging your tax return for Airbnb, there are some general tax principles that every host should know.

Is Airbnb Income Taxable?

As a baseline rule, rental property income must be declared as taxable income whenever a property is rented at market rates. Since Airbnb listings are publicly advertised and are priced alongside other short-term rentals, Airbnb income will always meet this definition by default.  

Income for bookings negotiated off Airbnb or arranged privately will also generally meet this definition and must be declared. This is true even if you offer a discount, for example, to repeat guests, or to friends and family. Your discount may be based on higher trust, lower risk, repeat business or booking incentives. All of these are commercially rational reasons, so they still meet the ATO’s rule of being market rates.

The only situation where Airbnb income may not need to be declared is when a property is rented to a friend or family member at well below market rates. However, in those cases, tax deductions for that period are not available either.

Is Airbnb Considered Rental Income or Business Income?

When lodging an Airbnb tax return, a common question is whether Airbnb income is reported as business income or as rental income. 

For the vast majority of Airbnb hosts in Australia, Airbnb income is treated as rental income, not business income. In practical terms, this means Airbnb income and expenses are reported in the rental property section of your individual tax return, using the rental property schedule. The same tax rules apply as they do for long-term rental properties. This includes how deductions are claimed, how losses are treated, and how income is taxed at your marginal tax rate.

This classification has several important flow-on effects at tax time. Airbnb hosts are not required, nor eligible, to have an ABN for Airbnb. They’re also not eligible to register for GST on their Airbnb income. And small business tax concessions, such as the instant asset write-off, do not apply. 

Exceptions to this classification are rare. It’s often incorrectly assumed that owning multiple Airbnbs, having high earnings, or being heavily involved in day-to-day management automatically means you’re running a business. However, those factors alone are not enough. An example on the ATO website describes a taxpayer owning 16 rental properties, and they were deemed to be not running a business. Even with this many properties, there were no additional activities that gave the operation the character of a business; they were still ‘just’ renting out properties.

For Airbnb to qualify as business income, the ATO look at the overall size and scale of the activity, the amount of time spent managing it, and most importantly, whether the operation is conducted in a clearly business-like manner. A business-like manner is indicated by things like structured management, commercial branding, a website, and other independent advertising beyond Airbnb. None of these is sufficient on its own, but they are taken as part of an overall picture.

In practice, Airbnb income is only treated as business income in relatively uncommon situations. A hotel or branded serviced apartment operation would meet the requirements, as would an Airbnb management or hosting business on behalf of other property owners. But for most hosts who are simply renting out their own properties through Airbnb, even on a large scale, Airbnb income will be treated as rental income for tax return purposes.

How The Rental Property Schedule Works For Airbnb

Airbnb income is included in your regular individual tax return. There is no separate Airbnb tax return and no special Airbnb-only form. Instead, Airbnb income and expenses are reported in the rental property schedule, which forms part of your annual tax return.

The rental property schedule is the same schedule used for long-term rental properties. This is because, from the ATO’s perspective, Airbnb is simply another form of rental income, even though the day-to-day operation looks quite different. Airbnb income is declared alongside rental income, and deductions are claimed under standard rental property tax rules.

When completing the rental property schedule, Airbnb income must be reported as gross income. This means you declare the total amount guests paid for their stays before any Airbnb or booking platform fees are deducted. Airbnb service fees, cleaning fees paid to third parties, and other platform-related costs are then claimed separately as expenses. 

The rental property schedule captures high-level annual totals rather than individual bookings. You’ll enter your total Airbnb income for the year, along with expense totals grouped into categories such as advertising, cleaning, repairs, interest, depreciation, council rates, water rates, and other property-related costs. 

You’ll complete one rental property schedule per property. If you have multiple Airbnb properties, each property will have its own rental schedule. A possible exception is if you have multiple Airbnb listings at the same address, for example, where a house and a separate studio are listed individually. These two properties will have different apportionment percentages to each other, which means you’ll ideally have kept two separate sets of records. In these cases, a separate rental schedule for each Airbnb may be more practical.

Can I Declare Airbnb Income In My Spouse’s Name?

If your Airbnb property is jointly owned, Airbnb income and expenses must be split and declared according to the legal ownership shown on the property title. 

For most jointly owned properties, this means Airbnb income and expenses are split 50/50 between the owners. Less commonly, a property may be owned as tenants in common. This is where the ownership split is specified on the title, for example a 90/10 split. In those cases, the Airbnb income and deductions must be reported in that same proportion in each owner’s tax return. You cannot choose a different split for tax purposes.

Can I Pay My Spouse For Managing Our Airbnb?

This all remains true even where one partner primarily takes care of the cleaning, guest communication, pricing, and day-to-day management. There is no tax deduction available for time spent managing the Airbnb. 

This is a common question for spouses with different marginal tax rates who hope to have more income taxed in the lower-income spouse’s name. Under the ATO’s rules, this is not allowed. They don’t permit any mechanism that pays one owner a fee, or otherwise shifts income to a lower-taxed owner. This applies even when there is a genuine and significant difference in effort or involvement. 

How To Lodge For A Jointly-Owned Property

At lodgement time, each owner must declare their share of the Airbnb income and expenses strictly in line with legal ownership. For most jointly-owned Airbnbs, this means 50% of the profit will be taxed 50% at one partner’s marginal tax rate, and 50% at the other’s marginal tax rate.

When completing the rental property schedule in MyTax, each owner enters their ownership percentage as part of setting up the rental schedule. Then, all Airbnb income and deductions are entered as 100% totals, and MyTax automatically applies the ownership split in the background. If you are using an accountant, they’ll typically ask for your 100% totals and will apply the ownership split for you when preparing your tax return.

How Is Airbnb Tax Calculated In Australia?

Once Airbnb income and expenses have been reported in the rental property schedule, the next question is how that result is actually taxed. The way Airbnb tax is calculated depends on whether your Airbnb records a profit or a loss for the year.

How Are Airbnb Profits Taxed For Sole-Owner Properties?

If your Airbnb income is higher than your deductible expenses for the financial year, the result is an Airbnb profit. That profit is added to your other taxable income for the year, such as salary and wages, business income, or investment income, and is taxed at your marginal tax rate.

This means the tax impact of Airbnb can look very different from one host to another. Someone earning Airbnb income on top of a high salary may pay a much higher rate of tax on that income than someone with a lower overall income. 

For example, take Airbnb Owner A, who makes a profit of $10,000. They also have an employee job with a salary of $100,000, which means their marginal tax rate is 32%. The tax on their Airbnb profit would be $10,000 x 32% = $3,200. 

Compare this with Airbnb Owner B, who also makes a profit of $10,000, but they don’t have any other taxable income besides Airbnb, which means their marginal tax rate is 0%. The tax on their Airbnb profit would be $10,000 x 0% = $0.

How Are Airbnb Profits Taxed For Jointly Owned Properties?

For jointly owned properties, as mentioned previously, Airbnb income and expenses must be split according to the legal ownership on the title of the property. If the ownership is 50/50, then 50% of the Airbnb’s profit will be taxed at one partner’s marginal tax rate, and 50% at the other’s marginal tax rate. 

For example, take a couple who jointly own an Airbnb that records a profit of $20,000, and partner B does all of the cleaning and day-to-day management. This unequal split of labour has no tax impact in the tax return; the profit must still be split 50/50. 

• Partner A’s marginal tax rate is 39%, so they’ll pay tax of $10,000 x 39% = $3,900 on their share of the Airbnb profit. 
• Partner B’s marginal tax rate is 18%, so they’ll pay tax of $10,000 x 18% = $1,800 on their share of the Airbnb profit.  

Airbnb Losses and Negative Gearing Explained

If your Airbnb expenses exceed your Airbnb income for the year, the result is an Airbnb loss. This is particularly common in the first year of hosting, where setup costs may be high, and bookings may be inconsistent while the listing gains traction.

When an Airbnb records a loss, that loss can be offset against other taxable income, such as salary or wages. It effectively behaves like a tax deduction. This outcome is commonly referred to as negative gearing. No special election or extra step is required to apply negative gearing. It happens automatically as part of the tax return once the rental property schedule is completed.

As with profits, the tax benefit of an Airbnb loss depends on your marginal tax rate. A higher-income earner may see a more noticeable reduction in their overall tax bill, while someone on a lower income, or below the tax-free threshold, may see little or no tax benefit from the loss.

It’s important to keep the outcome in perspective. While negative gearing can soften the impact of a loss, it does not turn a loss into a profit. From a long-term cashflow perspective, Airbnb hosts are always better off with a property that generates profits. But where losses do occur, particularly during the setup phase, negative gearing may provide some cashflow relief, depending on your marginal tax rate.

When Is My Airbnb Tax Return Due?

It’s important to know when your Airbnb tax return is due and when any tax payable must be paid. This allows you to avoid the stress of a last-minute rush, and avoid the interest and penalties that could arise from a late lodgment. 

The ATO’s deadlines that apply to you will depend on whether you lodge your Airbnb tax return yourself using MyTax, or you use a Registered Tax Agent.

Airbnb Tax Return Due Date – Lodging via MyTax

If you lodge your own Airbnb tax return using MyTax through your MyGov account, the standard individual tax return deadline applies. For most Airbnb hosts, this means:

• Your tax return must be lodged by the 31st of October following the end of the financial year.
• Any tax payable is due on the 21st of November.
  

These are the ATO’s normal due dates that apply whether or not you have Airbnb income. Airbnb does not create a separate deadline, it is simply included as part of your individual tax return. If you miss the 31 October lodgement deadline and do not have a tax agent, interest and penalties may apply.

Airbnb Tax Return Due Date – Using A Tax Agent

If you use a Registered Tax Agent, and you lodged your previous year’s tax return on time, you may be eligible for an extended lodgement deadline. 

In most cases, the lodgement deadline when using a tax agent is the 15th of May. This extended deadline can be particularly helpful for Airbnb hosts, as it allows more time to finalise records and plan for any tax payable. Note however that you must be on your Tax Agent’s client list by the 31st of October.

Payment due dates vary depending on when the return is lodged:

• If your return is lodged on or before the 12th of February, payment is due on the 21st of March.
• If your return is lodged from the 13th of February to the 12th of March inclusive, payment is due on the 21st of April.
• If your return is lodged on or after the 13th of March, payment is due on the 5th of June.
  

For hosts with an expected tax bill, lodging through a Registered Tax Agent can give a significant cashflow advantage. It effectively defers the tax payment date without any penalties or interest.

What Happens If You Lodge Late?

If you lodge your Airbnb tax return after your applicable deadline, the Australian Taxation Office may apply penalties and interest on any unpaid tax. The size of the penalty depends on how late the return is and your circumstances.

If you’re not in a position to pay your tax bill right away, you should still lodge by your due date. You can then easily set up a payment arrangement with the ATO. This can usually be done via your MyGov, so you don’t even need to speak to the ATO. So even if you don’t have the funds available to pay your tax bill, it’s still always best to lodge on time to avoid failure-to-lodge penalties, and then the ATO will work with you to find a payment arrangement that’s manageable for you.

If you’ve fallen behind, keep in mind that lodging late is always better than not lodging at all. If you’ve missed a deadline, lodging as soon as possible or engaging a tax agent promptly can help minimise penalties and resolve the issue before it escalates.

MyTax vs Accountant: Which Is Better for Airbnb Hosts?

When it comes to lodging an Airbnb tax return, you’ll need to choose whether to use an accountant or tax agent, or to lodge your Airbnb return yourself on MyTax. Your choice will come down to the complexity of your Airbnb setup, your confidence with the tax rules that apply, and how much support you want at lodgement time.

Factors to Consider When Choosing How To Lodge

One of the biggest considerations is the complexity of your Airbnb arrangement. Hosts with a single property, straightforward expenses, and no private use often find that lodging an Airbnb tax return using MyTax is manageable. On the other hand, as complexity increases, such as with shared homes, multiple properties, high setup costs or CGT implications, the value of professional advice increases as well.

Your confidence with apportionment and depreciation is another important factor. These are two of the most technically complex and error-prone areas of Airbnb tax returns. Mistakes here can lead to under-claiming deductions or reporting incorrect figures. So if you’re not confident that your calculations are correct, using an accountant gives reassurance that everything is claimed correctly and your deductions are maximised.

One more factor to consider is time and mental load. Lodging an Airbnb tax return yourself requires time to prepare records, understand how figures flow through the rental property schedule, and check that everything has been entered correctly. Some hosts are happy to invest that time in exchange for saving on accounting fees, while others prefer to outsource the process and focus on running their Airbnb.

The Cost vs Confidence Trade-Off

From a cost perspective, lodging through MyTax is free, while using an accountant comes with a fee. However, the cheapest option is not always the best value. A missed deduction, incorrect apportionment, or classification error can easily outweigh the cost of professional help.

Many Airbnb hosts view using an accountant as buying certainty rather than simply paying for data entry. This can be particularly relevant in years where there have been major changes, such as renovations, new assets, changes in how the property is used, or unusually high income or expenses.

First-Year Airbnb Tax Returns

The first year of Airbnb hosting is often the most complex from a tax perspective. Setup costs, initial asset purchases, depreciation decisions, and changes in how the property is used can all affect how the tax return is prepared. For this reason, many hosts choose to use an accountant in the first year, even if they plan to lodge themselves in later years.

In later years, once systems are in place and the Airbnb setup is stable, some hosts find that lodging their Airbnb tax return through MyTax becomes more straightforward. Others continue to use an accountant each year for consistency, advice, or peace of mind. Both approaches are common, and you can choose which fits your circumstances best.

How Do I Prepare For Lodging My Airbnb Tax Return?

Before you lodge your Airbnb tax return, you’ll need to take some time to gather and organise the information you’ll need. Being prepared upfront makes the lodgement process faster, reduces the risk of errors, and helps ensure you don’t miss any deductions.

Whether you plan to lodge your Airbnb tax return yourself using MyTax or use an accountant, the same core information is required.

Airbnb Ownership and Property Details

You’ll need to confirm the basic details of the Airbnb property, including:

• The address of the property
• If owned jointly, the ownership percentages as shown on the property title
• The date Airbnb hosting started, and if relevant, the date it stopped during the financial year
• Whether the property was used as a dedicated Airbnb, or a shared home that is also your main residence
• If the property was a shared home, the floor space percentages for guests’ private use, your own private use, and shared use

These details determine how income and expenses are split and how apportionment is applied in the rental property schedule.

Airbnb Income Records You’ll Need

Airbnb income must be reported as gross income, not net payouts. Before lodging, make sure you have:

• Airbnb income totals for the financial year as per your Earnings report
• Income totals from any other booking platforms as per their reports
• Income from direct bookings as per your own records
  

Having clear income summaries helps avoid one of the most common Airbnb tax return mistakes, which is declaring net amounts instead of gross income.

Airbnb Tax Deduction Totals to Prepare

You’ll also need annual totals for your Airbnb expenses, grouped by category. This typically includes:

• Accountancy & Bookkeeping Expenses
• Airbnb & Other Booking Platform Fees
• Bank Fees
• Body Corporate Fees
• Cleaning & Laundry
• Council Rates
• Electricity & Gas
• Gardening
• Guest Consumables
• Insurance
• Interest (not your whole mortgage repayments, just the interest portion)
• Internet
• Land Tax
• Netflix & Entertainment
• Pest Control
• Printing, Stationery, Office & Phone
• Property Manager Fees
• Rent (only applicable if you rent rather than own your property)
• Repairs & Maintenance
• Security Costs
• Water Rates

If the property was used partly for private purposes, expenses must be apportioned based on floor space and availability. If lodging your own tax return on MyTax, these calculations must be done before lodgement so that only the deductible portion is entered into the rental property schedule. Or if lodging through an accountant or tax agent, they should take care of these calculations for you. You can find more information in our article on Apportioning Airbnb Expenses.

Airbnb Depreciation and Asset Information

If you are claiming depreciation, you’ll need:

• A list of depreciable assets purchased for your Airbnb for the year. This includes the purchase date, or for assets that were purchased during your Airbnb setup period, the date that your property was first listed and available to take guests.
• If you claimed depreciation in previous years, a copy of your depreciation schedule from your prior year tax return
• If you have one, a Quantity Surveyor’s report to claim building depreciation

Depreciation is one of the most complex areas of Airbnb tax, and having accurate figures ready before lodging is essential. Learn more in our article on Claiming Depreciation for Airbnb.

Why Regular Bookkeeping Is Key

Many Airbnb hosts imagine tax time as a slog of trawling through receipts and bank statements to reconstruct a year’s worth of income and expenses. But if your Airbnb bookkeeping is kept up to date throughout the year, then when tax time arrives, you’ll already have all these figures ready to go, and you can lodge your Airbnb tax return right away. 

With the right spreadsheet or software, income totals, expense categories, apportionment percentages, and depreciation amounts will already be calculated, and tax return lodgement becomes a simple process of entering those final figures in your tax return or handing them over to an accountant. 

Option 1: How to Lodge Your Airbnb Tax Return Using MyTax

Lodging your Airbnb tax return using MyTax through your MyGov account is a popular option for hosts with relatively straightforward setups who are comfortable working with their own numbers. MyTax is designed to handle rental income, including Airbnb and other short-term rentals, as long as the figures entered are correct.

Who Should Use MyTax for Airbnb

Using MyTax to lodge your Airbnb tax return can be a good fit if you:

• have one or two Airbnb properties
• have kept clear and consistent Airbnb bookkeeping during the year
• have a dedicated Airbnb, or are confident with your apportionment calculations
• are confident with your calculations for income and deductions
• are confident with your classifications of repairs vs assets, and your calculations for depreciation
• want to save on accountant fees

How MyTax Handles Airbnb Income

In MyTax, Airbnb and short-term rental income is reported in the rental property schedule, alongside other rental income. You’ll be asked to enter property details, ownership percentages, and annual totals for income and for each category of expenses.

If the Airbnb property is jointly owned, ownership percentages are entered as part of setting up the rental schedule. Airbnb income and expense totals are then entered at 100%, and MyTax automatically applies the ownership split to calculate your share.

Importantly, the rental schedule is designed for traditional long-term rental properties and has been relatively unchanged for decades, well before Airbnb was even thought of. As a result, many common Airbnb expenses, such as electricity and guest consumables, don’t have an appropriate category field in the rental property schedule. This means the only option for entering these Airbnb deductions is to use the Other Expenses field. However, when this total gets too large, it can be a red flag to the ATO. So to help avoid unwanted attention, always use a specific field where you can, and only use the Other Expenses field when there’s no other option. A handy tip here – put Airbnb service fees and other platform fees into the Advertising field to reduce the total in the Other Expenses field.  

EasyBnbTax Tools For Lodging Your Airbnb Tax Return In MyTax

If you’re planning to lodge your own Airbnb tax return on MyTax, our Ultimate Airbnb Spreadsheet can handle all the heavy lifting for you.

Collating and categorising your income and expenses is simple. The spreadsheet automatically calculates your apportionments for shared and private use, removing one of the most complex and error-prone parts of Airbnb tax. And the built-in depreciation calculator handles all of your asset claims with ease. 

At tax time, the spreadsheet’s Tax Summary is perfectly aligned to the rental property schedule in MyTax, so you can simply type your figures into your tax return or pass them directly to an accountant. By using a spreadsheet that’s built specifically for Aussie Airbnb hosts, you’ll have confidence that your Airbnb tax lodgment is accurate, your calculations are correct, and your tax deductions are maximised.

The EasyBnbTax Ultimate Airbnb Spreadsheet is only $47, which includes free annual updates, and it’s 100% tax-deductible.  Click through here to learn more on our Airbnb spreadsheet information page.

While the Ultimate Airbnb Spreadsheet is the right tool to handle the numbers, you also need the knowledge to know what belongs in it. That’s where the EasyBnbTax Complete Online Course comes in. 

The online course walks you through exactly how Airbnb tax works in practice, including which expenses you can and can’t claim, which assets belong in the depreciation schedule, how to make sure you’re not missing legitimate tax deductions, and how to correctly lodge your Airbnb income in your end-of-year tax return. 

Here’s what’s included:

• 30+ video lessons covering everything you need to know about Airbnb taxes in Australia
• The Ultimate Airbnb Spreadsheet, full version with lifetime free updates
• Step-by-step tutorial showing you how to complete the MyTax rental property schedule to lodge your own Airbnb tax return with confidence
• Private support group to ask questions and get answers directly from a CPA and Airbnb tax expert
• Lifetime access and free annual updates

If you want to feel confident managing your Airbnb taxes, and lodge your own tax return with confidence, the EasyBnbTax Complete Online Course is a smart solution. Learn more on our course information page, which includes a free sneak peek video lesson with some handy tax deduction tips.

Option 2: Using an Accountant to Lodge Your Airbnb Tax Return

Using an accountant for your Airbnb tax return does come with a cost. But it’s still often the preferred option for hosts who want professional oversight, help navigating complexity, and confidence that everything has been handled correctly.  

Benefits of Using an Accountant for Airbnb Tax Returns

There are a range of reasons why many Airbnb hosts choose to use an accountant or registered tax agent to lodge their Airbnb tax return. 

One of the biggest is certainty. Airbnb tax rules can be nuanced, particularly around apportionment, depreciation, repairs versus improvements, and mixed private use. For hosts who don’t feel confident applying these rules themselves, using an accountant provides reassurance that the return has been prepared correctly and in line with ATO expectations. This can be especially valuable where Airbnb income is substantial, the setup is complex, or there is concern about audit risk.

Using an accountant can also save significant time and mental energy. Rather than learning Airbnb tax rules from scratch, working out what can and can’t be claimed, and navigating the rental property schedule in MyTax, an accountant handles the process end to end. An experienced Airbnb accountant can also help ensure legitimate deductions aren’t missed, particularly in areas where hosts often underclaim due to uncertainty. 

For many Airbnb hosts, the combination of expert oversight, maximised deductions, and reduced stress makes using an accountant the right choice for lodging their Airbnb tax return.

When It Makes Sense To Use An Airbnb Accountant

We always recommend using an accountant or tax agent in the first year of running an Airbnb. The Airbnb setup phase typically involves significant upfront spending, which can result in high tax deductions and, in many cases, an overall loss for the year. From the ATO’s perspective, this means more complexity and a higher risk of errors if handled incorrectly, which increases the odds of an audit. 

It’s also common for hosts to purchase a multitude of assets while furnishing their Airbnb in their first year. This means depreciation schedules need to be set up. Airbnb setup also often involves repairs or improvements, which can be difficult to classify correctly for tax purposes. Having an experienced Airbnb accountant handle these issues in the first year helps ensure your Airbnb tax return is structured correctly from the outset and avoids problems that can carry forward into future years.

Other situations where professional help is worthwhile include sharing your home with guests, which involves apportionment calculations, undertaking renovations or extensive repairs that are tricky to classify and will require new depreciation calculations, and any cases where there are potential capital gains tax implications, which can involve significant amounts of money. In these cases, an accountant’s fees can be well worth the cost. You’ll have peace of mind that things are done right, with no worry of costly corrections or ATO problems down the track.

What to Give Your Accountant to Keep Fees Down

Even when using an accountant to lodge your Airbnb tax return, good bookkeeping still matters. The most effective way to keep accounting fees down is to provide your accountant with clean, organised information at tax time. When Airbnb income and expenses are already collated and summarised, ownership details are clear, apportionment has been calculated, and new asset lists are available, your accountant can prepare your Airbnb tax return quickly and efficiently.

Using a structured spreadsheet or bookkeeping system throughout the year makes this much easier. Instead of handing over boxes of receipts or raw bank statements, you can provide final totals that are ready to review. This avoids paying for their time spent sorting and reconstructing records. Instead, it allows your accountant to focus on preparing the tax return, checking compliance, and identifying opportunities to optimise your deductions.

Keep in mind that most accountants won’t ask you for every expense receipt. The onus will be on you to keep these records safely filed away in case the ATO asks for them. Instead, most accountants will only ask for select higher-value receipts, or for receipts where the classification of the asset needs to be double-checked. Be sure that your receipt-filing system will allow you to find select receipts or invoices on demand as needed. 

EasyBnbTax Express Tax For Airbnb Hosts

For Airbnb hosts who want expert support from start to finish, the EasyBnbTax Express Tax service allows you to have your Airbnb tax return prepared and lodged by Australia’s leading Airbnb tax specialists. 

We focus exclusively on Airbnb and short-term rental taxes. This means we know the ATO’s Airbnb tax rules inside out. We can handle all the complexities around apportionment, depreciation, repairs versus improvements, and mixed private use. 

Our Express Tax Service is fully online, so you can lodge from anywhere in Australia. We don’t use AI or offshoring; every tax return is prepared and lodged personally by Registered Tax Agent and Airbnb Tax expert Jess Murray CPA, who works with Airbnb hosts every day. You’ll fill in your details via our online form, and then Jess will be in touch via email to talk through any questions or any potential missed deductions. 

By using EasyBnbTax Express Tax service, you’ll have complete confidence that your Airbnb income has been reported correctly, and all your Airbnb tax deductions are maximised.

What If I Can’t Afford My Tax Bill?

If you’re unable to pay your tax bill by its due date, the ATO is usually happy to set up a payment arrangement. Most payment plans require:

• an upfront payment (often around 20%)
• the balance paid off over time, up to two years
  

The easiest way to set up a payment plan is directly through your MyGov. Alternatively, it can also be done via an ATO automated phone service.

When on a payment arrangement, the ATO requires that all future tax bills are paid on time and in full, otherwise the payment arrangement will default. So it’s critical to continue saving for future tax bills at the same time as managing the payment arrangement.

Common Airbnb Tax Lodgement Mistakes to Avoid

Even when Airbnb income and expenses are tracked carefully, certain mistakes come up repeatedly at lodgement time. Being aware of these issues before you lodge your Airbnb tax return can help you avoid amendments, missed deductions, or unnecessary attention from the Australian Taxation Office.

Declaring Net Airbnb Payouts Instead of Gross Income

One of the most common Airbnb tax mistakes is declaring net payouts instead of gross income. Airbnb income must be reported as the total amount guests paid before Airbnb service fees or other platform charges are deducted. Those fees are then claimed separately as an expense. 

The ATO data-matches your reported income figures against figures it receives directly from Airbnb and other booking platforms, and a mismatch can trigger an ATO audit. So it’s important to report your income exactly as the ATO expects to see it.

Incorrect Ownership Splits

For jointly owned Airbnb properties, income and expenses must be split according to the legal ownership shown on the property title. It’s not uncommon for hosts to incorrectly split income based on who does the work or who needs the income more from a tax perspective, which is not permitted by the ATO. This is a frequent cause of amended tax returns. 

The ATO has access to government property ownership records. This means they can automatically cross-match this with the ownership percentages reported in your tax return, and easily spot inappropriate claims. 

Failure to Apportion for Private Use

If an Airbnb property is used partly for private purposes, expenses must be apportioned correctly. This involves applying both floor space and time-based calculations to determine the deductible portion of expenses. Failing to apportion, or applying overly simplistic methods, can result in overclaiming deductions and increased audit risk.

Repairs vs Improvements Errors

Another common mistake is treating improvements or initial setup work as immediate repairs. While repairs relating to wear and tear during income-producing use are deductible, improvements and initial works are treated as capital expenses and claimed over time. 

This is one of the biggest red flag areas for the ATO, and a high repairs figure in your tax return will significantly raise audit risk. It’s critical to ensure expenses are classified accurately, and the ATO’s rules for claiming repairs are followed correctly.

Depreciation and Asset Claim Mistakes

Depreciation is an area where many Airbnb hosts either overclaim or underclaim. Common issues include depreciating ineligible second-hand assets, failing to adjust for private use, and applying capital allowance depreciation rates to capital works assets. It’s important to have a clear understanding of the rules around asset classification, effective lives and depreciation calculation methods. 

Incorrectly Claiming Airbnb Travel Expenses

Since 2017, the ATO has removed all tax deductions for travel expenses for Airbnb and rental properties. This change was primarily aimed at rental property owners claiming deductions for flights and travel as ‘inspection costs’, when the true purpose of their trip was largely private, such as a family holiday. 

As a result, there are no claims available for car travel, flights, accommodation or local trips related to cleaning, inspections, repairs or restocking. This applies regardless of how frequently you visit your Airbnb or how essential the travel is for hosting.

The trap to look out for here is that the Travel Expenses field still shows in the rental property schedule in MyTax. It’s up to hosts to remember that this field must not be filled in.

Final Thoughts: Choosing the Right Way to Lodge Your Airbnb Tax Return

Lodging an Airbnb tax return is often far less daunting than it first appears. With a good bookkeeping system in place during the year, tax time is largely about finalising figures you already have, rather than trawling through receipts and bank statements. When your income, expenses, apportionment, and depreciation are already calculated, lodging your taxes becomes a straightforward and predictable process.

When deciding how to lodge your Airbnb tax return, the best approach is to be honest about how confident you feel applying the ATO’s Airbnb tax rules. Hosts with simple setups and clean bookkeeping often find MyTax manageable, while those dealing with shared homes, asset depreciation, or more complex arrangements benefit from having an accountant involved. You should also consider how much time and mental energy you want to invest at tax time, and how much value you place on the peace of mind of knowing your tax return has been lodged correctly. 

Whether you lodge your Airbnb tax return yourself or use an accountant, being organised and informed puts you in control and makes tax time simple and stress-free.

Airbnb Tax Return FAQ’s

How do I lodge an Airbnb tax return in Australia?

You lodge an Airbnb tax return as part of your regular individual tax return. Airbnb income and expenses are reported in the rental property schedule within your tax return, not on a separate form. You can lodge yourself using MyTax through your MyGov account, or have a registered tax agent prepare and lodge the return for you.

How do I declare Airbnb income in my tax return in Australia?

Airbnb income is declared in the rental property schedule of your individual tax return. You must report the total gross income earned from Airbnb and other booking platforms, then separately claim allowable expenses. The net result, profit or loss, is included in your taxable income and taxed at your marginal tax rate.

Where do I report Airbnb income in MyTax?

In MyTax, Airbnb income is reported in the rental property schedule under rental income. You enter your property details, ownership percentage, and annual income and expense totals. Airbnb income is treated the same way as long-term rental income, so you can follow the ATO’s guidance for regular rental properties.

Should I use an accountant for my Airbnb tax return?

Using an accountant can be worthwhile if your Airbnb setup is complex, involves shared or private use, asset depreciation, renovations, or capital gains tax considerations. Many hosts also choose to use an accountant in their first year of Airbnb hosting to ensure everything is set up correctly and avoid costly mistakes.

What are the benefits of using an accountant for Airbnb tax?

An accountant provides expertise in Airbnb-specific tax rules, particularly around apportionment, depreciation, and repairs versus improvements. They can help ensure deductions are claimed correctly, handle the complex calculations, reduce audit risk, and save time and stress at lodgement. For many hosts, the confidence and peace of mind outweigh the cost.

When is my Airbnb tax return due?

If you lodge your Airbnb tax return yourself using MyTax, it is due by the 31st of October, with tax payable usually due by the 21st of November. If you use a registered tax agent and lodged on time last year, the lodgement deadline is typically extended to the 15th of May.

Is Airbnb declared as rental income or business income?

For the vast majority of Airbnb hosts in Australia, Airbnb income is treated as rental income, not business income. It is reported in the rental property schedule and taxed under standard rental property rules. Airbnb is only treated as business income in uncommon cases where the activity resembles a hotel or serviced apartment operation with many properties under one branded umbrella.

Should Airbnb income be reported as gross or net?

The ATO requires Airbnb income to be reported as gross income, meaning the total amount guests paid before Airbnb service fees or other platform charges are deducted. Then, Airbnb fees, as well as cleaning costs and other platform charges, are claimed separately as expenses. Reporting net payouts instead of gross income is a common mistake and is not correct.

What is negative gearing for Airbnb?

Negative gearing for Airbnb occurs when deductible expenses exceed Airbnb income for the year, resulting in a tax loss. That loss can be offset against other taxable income, such as salary or wages, reducing your overall tax payable. The dollar impact of negative gearing depends on your marginal tax rate. Negative gearing isn’t something to strive for, instead think of it as a consolation prize for making a loss.

Can Airbnb losses be negatively geared?

Yes, Airbnb losses can generally be negatively geared. If your Airbnb expenses are higher than your income, the resulting loss can be offset against other income in your tax return. You don’t have to opt in or do anything specific. Negative gearing is a normal, automatic part of how tax returns in Australia are calculated. The tax benefit of negative gearing depends on your marginal tax rate.

Questions? Thoughts? Pop them in the comments below and I’ll get right back to you!

Happy hosting! – Jess