IRD has put out seven draft items to consult on that sets out the tax outcomes associated when you provide short stay accommodation

• PUB00303 — Overview — Consultation on accommodation items

• PUB00303/a — Set costs for boarders in your home

• PUB00303/b — Set costs for short-stay accommodation in your home

• PUB00303/c — Standard rules for short-stay accommodation in your home

• PUB00303/d — Which income tax rules apply to accommodation in a holiday home?

• PUB00303/e — Applying the mixed-use asset rules to a holiday home

• PUB00303/f — Applying the standard rules to a holiday home

• PUB00303/g — Short-stay accommodation — GST registration

Given that the tax rules that apply to each situation differs we recommend that you pick the document that will be applicable to you. The tax treatment would differ if you have a boarder in your house compared to if you have what is known as a mixed-use asset. It differs again if you are providing short stays at your own home similar to Airbnb.

This is also a good reminder that it’s not just income tax that you must think about as GST may also be applicable. You will have to register and pay GST if you carry on a taxable activity and your supplies exceed $60,000 in a 12-month period. Note that if you are already GST registered for another activity you may want to consider if the existing registration impacts on the short-term accommodation you supply.

If you are concerned or have any questions, please come talk to us or your advisor.

You have until the 22 March 2019 to get your views in.