Can someone please confirm that we don't need to declare as income the payments we receive from AHN for two homestay students? Our children receive Youth Allowance and I want to make sure it won't effect our assessable income or the ability for them to continue to receive Youth Allowance.
Hi @watermelon123,
You don't need to declare homestay payments as income if the arrangement is considered a domestic arrangement. When you receive payments from family members or homestay students in the form of 'board and lodging' to cover the cost of their meals and accommodation, this is treated as a domestic arrangement.
The payments you receive from AHN for your two homestay students would generally fall under this category, so they won't affect your assessable income.
However, if you rent out to homestay students under arrangements that are consistent with normal commercial practices in the area, the treatment may differ. You'd need to work out whether the arrangements are commercial or less than commercial rent.
If you need specific confirmation about your individual circumstances and how this affects Youth Allowance eligibility, you may want to contact Services Australia to discuss your family's situation.
Howdy!
It might depend on whether you charge an amount that's just enough to cover costs, or if it's more than required so you're earning an income from it.
TR 2025/D1 | Legal database is a tax ruling that has 2 different examples of when a homestay payment is assessable, and when it isn't:
Example 4 – international student homestay – shared household costs
57. Fatima and Raoul purchase their own home. They bring in a foreign student, Michelle, who lives in a room at their house and eats meals with the family. Michelle's sponsor pays $80 per week to Fatima and Raoul to cover the cost of Michelle's household expenses, such as food and other amenities. As these amounts are calculated to only cover Michelle's part of shared household costs, they are not assessable, and Fatima and Raoul cannot claim any deductions. The $80 does not relate to Michelle paying for the use of Fatima and Raoul's property. Rather, it is a contribution by Michelle for her share of the cost of the household expenses.
Example 5 – international student homestay – income from rental property
58. If, in the previous example, the payment is $400 per week, which includes a rent component of $320 in addition to the $80 to cover the cost of Michelle's household expenses, this rent payment will be income from Fatima and Raoul's property and need to be declared as assessable income. The $320 forms part of income derived from the property as it relates to Michelle's right to use and enjoy part of the property, which is in addition to sharing the cost of food and other amenities relating to her stay. Fatima and Raoul may be able to claim apportioned deductions for expenses related to ownership of the property, but not for Michelle's contribution to household expenses.[22]
It's through a homestay third party company where the rates are set and I believe this is not assesable income but just wanting to confirm thank you
Hi @watermelon123,
You don't need to declare homestay payments as income if the arrangement is considered a domestic arrangement. When you receive payments from family members or homestay students in the form of 'board and lodging' to cover the cost of their meals and accommodation, this is treated as a domestic arrangement.
The payments you receive from AHN for your two homestay students would generally fall under this category, so they won't affect your assessable income.
However, if you rent out to homestay students under arrangements that are consistent with normal commercial practices in the area, the treatment may differ. You'd need to work out whether the arrangements are commercial or less than commercial rent.
If you need specific confirmation about your individual circumstances and how this affects Youth Allowance eligibility, you may want to contact Services Australia to discuss your family's situation.
22 Apr 2024 · 6 min read time
15 Apr 2026 · 5 min read time
15 Apr 2026 · 4 min read time
33 views
3 replies