Money you earn from renting out a room in your house is rental income, according to the Australian Tax Office (ATO).
This applies to rooms rented by traditional means or through a sharing economy website or app.
You can only claim expenses related to the part of the house you rent out and you need to apportion the expenses accordingly. However, you can claim 100% of any fees or commissions charged by the rental facilitator or administrator.
Capital gains tax may also apply if you sell property used to generate rental income.
- The sharing economy and tax
- See ATO’s examples to better understand how claiming deductions works when renting rooms or your main residence on an occasional basis.