Most Airbnb hosts don't charge GST and can't claim it back on that income: renting out residential premises is input-taxed. No GST on the nightly rate, no GST credits on cleaning, linen or the reno, and the rental income doesn't count toward the $75,000 GST turnover threshold, no matter how big it gets. The exceptions live at the hotel-like end of hosting.
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What "input-taxed" actually means.
Australian GST sorts every sale into three buckets: taxable, GST-free and input-taxed (the full tour). Input-taxed is the strange one: you don't charge GST on the sale, and you can't claim GST credits on what it cost you to make it. Residential rent is the classic example, and a short-stay listing in a house or apartment is still residential rent in GST terms. The stay being three nights instead of twelve months doesn't change the character of the premises.
What this means in practice.
- No GST on the nightly rate: don't add it, don't advertise it, don't remit it.
- No credits on hosting costs: the GST inside cleaning fees, linen services, furniture and renovations stays a cost. This is the "input-taxed trap": hosts who register expecting credit refunds discover the credits were never claimable.
- The income doesn't count toward $75,000: input-taxed sales are excluded from GST turnover, so a $150,000-a-year listing still doesn't require registration on its own.
The hotel-shaped exception.
The rules change when accommodation stops looking like a home and starts looking like commercial residential premises: hotels, motels, hostels, boarding houses: multiple rooms offered to the public, central management, services like reception and daily cleaning. Operations at that end charge GST normally (and claim credits normally), with turnover counting toward the threshold. A single apartment on Airbnb isn't this; a converted 12-room guesthouse with staff might be.
Hosts who already run a registered business.
Being GST-registered for your day business doesn't change the analysis: the hosting income stays input-taxed. Don't charge GST on stays, and don't claim credits on hosting costs through your business BAS, mixing input-taxed inputs into the credits label is one of the more common BAS errors going. Keep the two activities cleanly separated in the books. And remember GST is only one lane: the rental income is still fully assessable for income tax, and hosting part of your own home has capital gains consequences worth pricing before, not after.
Quick answers.
I earn over $75,000 a year from Airbnb: do I have to register for GST?
On that income alone, no, residential rent is input-taxed, is excluded from GST turnover, and never triggers the threshold. You also can't charge GST on the stays even voluntarily.
Can I claim GST credits on cleaning, linen or renovation costs for my listing?
No: costs that relate to making input-taxed supplies aren't creditable, whether or not you're GST-registered for something else. The GST in those costs is simply part of the cost.
When does short-stay accommodation attract GST?
When the premises are commercial residential: hotel, motel, hostel or boarding-house style operations with multiple rooms, central management and guest services. Those charge GST normally and claim credits normally.
Is my Airbnb income tax-free too, then?
Definitely not. GST and income tax are separate systems. Hosting income is fully assessable, expenses are deductible against it in the usual way, and renting out part of your main residence can affect its capital gains exemption. Worth a conversation with your accountant.
Related guides: GST-free vs input-taxed · Do I need to register for GST? · GST with multiple businesses · The GST margin scheme for property · GST on commercial property
Have a business that does need GST?
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