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Jasper2024(Newbie)Newbie
14 June 2024

I am considering starting an Air BnB business where I am hosting guests in my home rather than renting the house out. I know for Air BnB where you rent out the whole house you will incur land tax but what about if I am still living in the house so it is not an investment property as such but my home? Also do I have to pay any Capitol Gains Tax for this and if so how does it work, what records do I need to keep and how is it calculated and when does it have to be paid? I understand that any income I generate will be added to my normal income or is it considered tax on a second job?

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523 views
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CaroATO(Community Support)Community Support
19 June 2024

Hi @Jasper2024,


  1. Your best bet would be to have a chat with your state or territory revenue office about land tax.
  2. Yes. It's a great idea to keep good record keeping practices. You'll need to look at capital gains tax, (CGT) when you dispose of the property, for example sell. This is because you used part of your home to earn an income. You'll let us know about any rental income/deductions and CGT when you lodge your tax return.
  3. You'll report your rental income differently to your employment income.

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Most helpful reply

CaroATO(Community Support)Community Support
19 June 2024

Hi @Jasper2024,


  1. Your best bet would be to have a chat with your state or territory revenue office about land tax.
  2. Yes. It's a great idea to keep good record keeping practices. You'll need to look at capital gains tax, (CGT) when you dispose of the property, for example sell. This is because you used part of your home to earn an income. You'll let us know about any rental income/deductions and CGT when you lodge your tax return.
  3. You'll report your rental income differently to your employment income.

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Air BnB Hosting - is there Land Tax to be paid when you are not renting out house? | ATO Community