Mr. Chan has a holiday investment property at Sydney CBD which is used as an Airbnb business. The
property is rented out as a holiday apartment for the whole year.
Should Mr. Chan put the income from Airbnb rent in the rental schedule or the business schedule in the
his income tax return.
If Mr. Chan only has a single residential rental property it is unlikely that this would be a business
activity. It is more likely that this would need to be shown in the rental section of the tax return.
Where the owner of the property is not a company then the ATO provides some recent guidance on
whether rental activities can amount to a business in LCR 2018/7. This LCR is dealing specifically with
the travel deduction changes for rental property owners.
Generally, if Mr. Chan did not have a lot of rental properties (for example, 9 houses) nor actively
supervise the real estate agent or manage majority of issues associated with the properties for many
years, he would not be considered to be carry on a business.