Description

Over the last couple of years, we have seen a return of property owners letting property as short-term rental accommodation. We are also now seeing scenarios whereby people who had never let a room or their “bach” as short-term accommodation in the past are starting to do so to help cover the costs of inflation.

Anyone who deals with clients that let property (including a room in their own home) on a short-term rental accommodation basis, whether through Bachcare or otherwise, will benefit from this practical focused course.

This course will review the rules applying to those who let accommodation as short-term rentals, such as the mixed-use asset rules, and consider the impact of the recent tax changes introduced by the Coalition Government.

The changes impacting short term rental property owners include:

• Reducing the bright-line test to 2 years;
• The ability to claim interest deductions as an expense against rental income being fully restored in phases; and
• Removing depreciation deductions for non-residential buildings.

This course will work through the income tax rules applying to short-term rental activities in a practical way to demonstrate the implications and considerations to take into account. We will cover scenarios that continue to arise in this market and look particularly at the what deductions can be claimed, the application of the new bright-line and interest deductibility rules as they apply to short-term rental properties, amongst other things such as residential loss ring-fencing.

ORIGINAL BROADCAST DATE

28 May 2024

LEARNING OUTCOMES

• Upon satisfactory completion of this webinar, you will:
• Have a better understanding of the income tax issues facing clients that let property as short-term rental accommodation, including:
• How income tax rules practically apply;
• How the Mixed-Use Assets rules apply; and
• Understand the overlay of the residential loss ring-fencing rules.
• Gain an understanding of the issues arising from recent income tax changes relating to bright-line, interest deductibility and commercial/non-residential depreciation.
• Be able to guide your clients through the various income tax issues that they will have and face when letting property as short-term rental accommodation.

SUITED TO 

This course will be suitable for all accounting and legal practitioners that have clients letting through Airbnbn, Bachcare and the like, as well as real estate agents and property letting managers.

PRESENTER

Daniel Gibbons, Partner - Tax Advisory - Findex, (presenting on behalf of TEO)