How to work out the expenses you can claim
If you rent out a room, a unit or a whole house on an occasional basis through the sharing economy, for tax purposes you need to:
keep records of all income earned and declare it in your income tax return
keep records of expenses you can claim as deductions
calculate your capital gain when you sell the property
Income you need to declare:
all income before fees and commissions
insurance payouts, e.g. compensation for damage caused by renting
bonds or security deposits you become entitled to retain
letting and booking fees, including cancellation fees
Deductions you may claim include:
fees from the facilitator
power, gas and council rates
cleaning and maintenance
other associated expenses
Whether all or part of the expense can be claimed will depend on:
the number of days you rent out the property during the year
the portion of the property you have rented out (for example, a room or the whole property)
how you use the property, including any personal use
Capital Gains Tax:
When selling the property, you may have to pay capital gains tax (CGT).
To find out more, visit ato.gov.au/cgt
What you need to know
How big is the property?
How big is the rented room?
How big are the shared/common areas?
How many days was the room rented out?
How to work it out
Rented room (claim 100% for days rented):
Rented room - claim one hundred percent for days rented - formula (Rented room size divided by Total size of house or unit) multiplied by (number of days rented divided by total days in the year) multiplied by one hundred equals percent of expenses claimable
Common areas (claim 50% for days rented):
Common areas - claim fifty percent for days rented - formula - (Total common areas divided by Total size of house or unit) multiplied by (number of days rented divided by total days in the year) multiplied by fifty percent multiplied by 100 equals percent of expenses claimable.