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May 30, 2024

Tax holiday letting

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In all the current discussion about how to increase GST revenue, there seems to be an avoidance of one obvious area into which to expand the tax; short-term holiday letting.

From the start, this lucrative source of income has avoided the GST while benefiting from negative gearing. But hotels, hostels and bed-and-breakfasts pay GST. Why? Too hard? Surely not. Pressure from the development lobby? I wonder.

Taxing holiday-let houses properly might even result in some of the oversupply returning to badly needed residential housing.

Anny Reed, Byron Bay


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2 COMMENTS

  1. Not only should there be a GST, but councils should charge a commercial rate. Compensation should also be paid to the neighbours (victims) of these holiday lets as well for the suffering that they have had to endure!

  2. A NSW Land and Environment Court judgement in May 2013, clearly showed that holiday letting in 2(a) residential zones is an illegal activity. Despite being illegal all holiday lets owners are required as a service provider to have an ABN and to pay GST. If they don’t comply then the holiday let owner should be reported to the ATO for investigation.

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