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Star & Associates
Level 7, 16 O'Connell Street
Sydney NSW 2000

Renting out a room is rental income

With the rise of AirBNB and other sharing economy platforms, the ATO is reminding taxpayers that money they earn from renting out a room in their house is rental income for tax purposes. This applies to rooms rented by traditional means or through a sharing economy website or app.

The ATO also states that if you use your main residence to earn income, for example by renting out a room on a sharing economy platform, you are no longer eligible for the full CGT exemption on a main residence. You will lose a proportion of your main residence exemption based on the proportion of your floor area rented out, and the length of time it was rented.