A great summer holiday in a favourite coastal town or rural retreat can have some people thinking of investing in a property in such a location to make their own.
The popularity of renting such homes for short-term stays on various platforms, including Airbnb, can make the option seem even more attractive at first glance.
However, those who do take such a route need to be aware of the tax traps and advantages that can arise.
Many of those signing up to rent out their home for holiday lets often consider it a side hustle, which could go under the radar, according to H&R Block Australia tax communications director Mark Chapman.
“First and foremost, people don’t realise that they have to disclose their income from renting the property in the first place,” Chapman said.
“The ATO gets information relating to property rentals from the platforms; therefore, they already know you’re renting out the property.
“Failing to disclose income from the property in your tax…
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