Victoria continues to lock down due to COVID-19 again and New South Wales not looking too far away from a similar fate. As Queensland’s restrictions have eased, residents have been told that they are now good to go to the gym, clubs, and pubs. Hiking tracks are available to enjoy, and adventures are to be had. Now is a perfect time for holidaymakers to go out, adventure, and explore Queensland. However, now is also the perfect time for Airbnb owners to crack down on their tax returns and hopefully score a potential score this time around. Airbnb owners can now claim tax deductions for all expenses which are incurred in deriving their rental income. Typically, when the entire property is rented out, all the costs involved in running the property will be deductible. If you’re a landlord for a rental property with assessable income, you may be entitled to tax deductions for expenses incurred.

These examples fall into three categories:

  1. Expenses directly associated with the rented area can be deducted in full
  2. Expenses related to share areas need to be apportioned
  3. Expenses related to the host’s private area only cannot be deducted.

Expenses that may be deductible in full include:

  1. Depreciation of furniture used in the rented room
  2. Commercial cleaning of the rented area
  3. Repairs and maintenance
  4. Food, such as breakfast provisions, made available to the guest
  5. Professional photography for the listing
  6. Service fees and commissions charged by Airbnb.

Surprisingly, it is not required for tenants to be staying in your Airbnb to be able to claim deductions on it. If it is available for rent, the deductions are available to claim. However, when you rent out only a section of your property, such as a bedroom with access to shared areas in the property where you live, you can only claim expenses for the period the room is rented. So, if you only rented the room for two weeks in a year, you could only claim the proportion of expenses for the rented part of the property which related to those two weeks. This is to stop you from claiming deductions for periods where the room might be used for private or domestic purposes, even though it was notionally available for rent. Consider getting a quantity surveyor to report to maximise your depreciation deductions.

HQ Financial Group is a multi-disciplinary firm specialising in taxation, accounting, and financial advisory services to sole traders, individuals, and micro-businesses. Our expertise in Taxation, Wealth Management, Self-managed Superannuation (SMSF) Services, Business Planning and Advisory, and overall Financial Management allows us to proactively provide trusted and balanced advice to our clients that saves both their time and money.
For further information or to get in touch with our expert team, visit us at or call us on 1300 474 829.