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Issued
01 Nov 2023

Short-stay accommodation

“Short-stay accommodation” (also known as “short-term accommodation) is accommodation provided to a guest for up to four consecutive weeks, in a home that is not the guest’s ordinary residence.   This accommodation is often provided through peer-to-peer platforms such as Airbnb or Bookabach.   

“Short-stay accommodation” does not include: 

  • Accommodation provided to residential tenants, boarders, or care home residents
  • Student accommodation 
  • Emergency accommodation 

The Commissioner has published several items on short-stay accommodation. This overview sets out these items and provides guidance on tax obligations if you provide short-stay accommodation to guests.

The Commissioner issues different types of guidance items to cater for different customer needs.  The different types of items are explained here.

Income tax and short-stay accommodation

Renting out all or part of your own home

Title Summary Date issued

Standard-cost household service for short-stay accommodation providers

DET 19/02

This Determination may be relevant to taxpayers who provide short-stay accommodation services in their home, if they do not rent out rooms for more than 100 nights in the year.  21 May 2019 

2023 CPI adjustment to DET 19/02: Short-stay accommodation

DET 19/02 (CPI 2023) 

This update to DET 19/02 shows the annual adjustment to the standard-cost household service for short-stay accommodation.   11 May 2023 

What are my income tax obligations if I rent out my home or a separate dwelling on my property as short-stay accommodation?

QB 19/05

If you can’t use the standard-cost approach in DET 19/02, or you don’t want to, your deductions will be based on your actual costs related to earning the income. This QWBA will help you understand how to calculate the percentage of your mixed expenses that’s tax deductible. 20 May 2019 

Renting out a separate property

Title Summary Date issued

What income tax rules apply if I have a dwelling that I sometimes rent out as short-stay accommodation and sometimes use myself?

QB 19/06

This QWBA will help you work out which income tax rules apply to a dwelling you sometimes rent out as short-stay accommodation and sometimes use yourself.

You may have to use the mixed-use asset rules as explained in QB 19/07 or the standard rules explained in QB 19/08.

20 May 2019 

How do the mixed-use asset income tax rules apply to a dwelling that I sometimes rent out as short-stay accommodation and sometimes use privately?

QB 19/07

This QWBA explains how the income tax rules apply to a dwelling you sometimes rent out as short-stay accommodation and sometimes use privately, where the dwelling is subject to the mixed-use asset rules. Before you use this QWBA, you need to work out if the mixed-use asset rules apply to the dwelling (refer to QB 19/06).   20 May 2019

How do the standard income tax rules apply to a dwelling that I sometimes rent out as short-stay accommodation and sometimes use privately?

QB 19/08

This QWBA is relevant if you’ve determined that for a particular income year the dwelling is subject to the standard rules, not the mixed-use asset rules (refer to QB 19/06).  20 May 2019 

 

The interest limitation rules

Title Summary Date issued

The interest limitation rules and short-stay accommodation

IS 23/04

This IS considers how the interest limitation rules apply to interest incurred for property used to provide short-stay accommodation. It also explains what other income tax rules may be relevant to any interest that is deductible, depending on your circumstances. This IS explains how the rules apply to natural persons and trustees only.   2 Jun 2023

 

Other resources

Title Summary Date issued
Short-stay standard-cost for renting out your home or its rooms The main Inland Revenue website contains further information about short-stay standard costs and rental income from renting out a home or its rooms.  
Actual cost method for working out rental income and expenses  The main Inland Revenue website contains further information about the actual cost method and how to apply this.  

Home based Boarders or Home-stay students

IR1255

Use this Worksheet for calculating standard-costs for private boarding services. June 2023 

Tax rules for holiday homes 

IR1021

This Factsheet explains the tax rules that apply to "mixed-use" assets. Mar 2023

 

Income tax - Trusts and short-stay accommodation

Title Summary Date issued

If property held in a trust is rented out by a beneficiary of the trust for short-stay accommodation, who should declare the income, and what deductions can be claimed?

QB 19/15

This QWBA explains how the income tax rules apply if property held in a trust is rented out by a beneficiary of the trust. 19 Dec 2019

If property held in a trust is rented out by the trustees for short-stay accommodation, who should declare the income, and what deductions can be claimed?

QB 19/16

This QWBA explains how the income tax rules apply if property held in a trust is rented out by the trustees.  19 Dec 2019 

The interest limitation rules and short-stay accommodation 

IS 23/04

This IS considers how the interest limitation rules apply to interest incurred for property used to provide short-stay accommodation. It also explains what other income tax rules may be relevant to any interest that is deductible, depending on your circumstances. This IS explains how the rules apply to natural persons and trustees only.  2 Jun 2023 

 

GST and short-stay accommodation

Title Summary Date issued

Can I register for GST if I supply short-stay accommodation to guests in my home or holiday home?

QB 19/09

This QWBA explains whether hosts who provide short-stay accommodation in their house or property can register for GST. 20 May 2019 

Goods and services tax: GST treatment of short-stay accommodation

IS 20/04

This IS explains the GST treatment of supplying short-stay accommodation and confirms these supplies are not exempt supplies.  The IS also discusses the requirements for registration, the main consequences of registration, change of use adjustments and what happens when the property is sold or the short-stay accommodation activity ceases.  4 Jun 2020 

 

Other resources

Title Summary Date issued

How GST applies to short-term rentals  

The main Inland Revenue website contains further information on how GST applies to short-term rentals.