Airbnb owners are issued with an urgent warning ahead of a massive tax crackdown – and it’s set to cost YOU more to find a place to stay on holiday
- Airborne has received notice about tax crackdown by Australian Taxation Office
- Property owners warned their personal details will be given to tax office
- Office said some people weren’t reporting income as they assumed it was hobby
More than 200,000 Airbnb homeowners have been issued a warning ahead of a massive tax crackdown.
Airbnb sent an email out to its Australian members on Thursday night, warning that their personal details would be given to the Australian Taxation Office.
The crackdown could see an increase in prices for those looking to stay in Airbnb properties.
Airbnb sent an email out to its Australian members on Thursday night, warning that their personal details would be given to The Australian Taxation Office (file image)
‘Airbnb is currently under legal notice by the Australian Taxation Office (ATO) to share information concerning your hosting activity for the period from 1 January to 30 June 2019,’ the email from the Airbnb Team said, The Daily Telegraph reported.
The online platform said the arrangement was part of an ATO data matching program that requires members to provide their names, numbers and addresses.
It comes after the ATO said some people were refusing to report their income as they assumed the activity was a ‘hobbie’.
‘We believe that some people using sharing economy platforms are failing to report their income, either on purpose or because they assume their level of activity constitutes a hobby and doesn’t require reporting,’ The ATO said.
Michael Johnson, Chief Executive for Tourism Accommodation Australia said the move would help clear up the economy’s accommodation sector.
He said property owners who had successfully declared their income tax wouldn’t have to worry.
‘This will significantly improve transparency and increase equity between traditional tax-paying accommodation providers and the largely unregulated short-stay accommodation sector,’ Mr Johnson said.
Brent Thomas, a spokesperson for Airbnb said the company was committed to making it easier ‘for the ATO to do their job’ as well as homeowners to pay their taxes.
It comes after the ATO said some people were refusing to report their income as they assumed the activity was a ‘hobby’ (file image)