Loading
misstaxquestion(Newbie)Newbie
8 Dec 2023

I intend to accept 1 to 2 international students from Melbourne University to offer them homestay in my spare bedrooms. Based on what I read from the Tax office page, I don't have to pay taxes from this rental income and it will not affect my capital gain tax.

May I know do I need to get a certificate from the Tax office to confirm I am indeed running a homestay arrangement or if some homestay paperwork I need to submit to Tax office when I do my tax return or when I sell the house to avoid a capital gain tax?


If the students found my room directly and paid me directly without a homestay agency like AHN, is that classified as a homestay arrangement?








12,524 views
5 replies
12,524 views
5 replies

Most helpful response

Most helpful replyATO Certified Response

WendyATO(Community Support)Community Support
ATO Certified Response11 Dec 2023

Hi @misstaxquestion,


Your understanding is correct, don't pay taxes and will not affect your CGT if under a homestay arrangement via a third party.


You don't need to obtain a certificate from us, but I would keep a record of the homestay arrangement if you're ever audited in the future.


If you're taking in students under a private rental agreement, not via a third party. Then you may need to declare the rent they pay you as income on your tax return. This includes rental income you must declare when you rent out part (a room) or all your home. This may also affect CGT not being fully exempt.


Similar questions have been asked before on the forum, check out post one and post two for responses.

All replies

Most helpful replyATO Certified Response

WendyATO(Community Support)Community Support
ATO Certified Response11 Dec 2023

Hi @misstaxquestion,


Your understanding is correct, don't pay taxes and will not affect your CGT if under a homestay arrangement via a third party.


You don't need to obtain a certificate from us, but I would keep a record of the homestay arrangement if you're ever audited in the future.


If you're taking in students under a private rental agreement, not via a third party. Then you may need to declare the rent they pay you as income on your tax return. This includes rental income you must declare when you rent out part (a room) or all your home. This may also affect CGT not being fully exempt.


Similar questions have been asked before on the forum, check out post one and post two for responses.

questionsanswer(Initiate)Initiate
3 Jan 2024

Dear WendyATO and ATO officers,


I refer to your answer above dated 11 Dec 2023 about working via a third party for homestay arrangements. Could you please confirm is there a list of ATO-approved homestay providers that we need to work with to be qualified as 'tax-free'?


I have been approached by a few homestay providers/English schools for their international students coming to Australia. AlI of them have told me that their students are tax-free. However, I want to make sure I do the right thing and the arrangements are accepted by ATO as tax-free, so I wish to get some sort of confirmation from you.


The students I am going to accept are above 18 years of age/studying in english schools or university. Could you please confirm this is ok and are still under the tax-free category?


Could you please confirm the above?

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3260 likes

  2. Taxduck

    (Taxicorn)

    2069 likes

  3. PayrollDeanne

    (Taxicorn)

    816 likes

  4. YellowPotato

    (Taxicorn)

    529 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10399contributions

  2. Taxduck

    (Taxicorn)

    4762contributions

  3. PayrollDeanne

    (Taxicorn)

    2061contributions

  4. YellowPotato

    (Taxicorn)

    1352contributions

  5. YEP

    (Devotee)

    837contributions

Loading
homestay arrangement | ATO Community