What expenses can I claim
as an Airbnb host
in Australia?

One of the most common questions Australian Airbnb hosts ask at tax time is simple: what can I actually claim? The answer is more generous than most hosts expect — but the rules around how you claim are stricter than most realise.

This guide covers every deduction category available to Australian Airbnb hosts, explains which expenses you can claim in full and which must be apportioned, and flags the common mistakes that result in either missed deductions or ATO scrutiny.

Two categories of deductions

Before diving into specific expenses, it helps to understand the two categories the ATO uses for short-term rental deductions:

100% deductible expenses are costs that relate exclusively to the rental activity — they wouldn't exist if you weren't hosting. You claim the full amount with no adjustment required.

Apportioned expenses are general property costs that benefit you whether or not the property is rented. The ATO requires you to claim only the portion that relates to the rental use — calculated using both the number of nights rented and, if you're renting a room rather than the whole property, the floor area used for rental.

100% deductible expenses

These costs relate solely to your rental activity and are fully deductible without any apportionment:

Expense	Deductibility	Notes
Airbnb service fees	100% deductible	The platform fee Airbnb deducts from your payout. Often overlooked because it never hits your bank account — but it's still a deductible expense.
Professional cleaning between guests	100% deductible	Cleaning services, laundry, linen hire, and consumables (soap, coffee, etc.) provided specifically for guests.
Property management fees	100% deductible	If you use a property manager or co-host, their fees are fully deductible as a rental expense.
Advertising and photography	100% deductible	Professional photography for your listing, listing fees on other platforms, and any paid promotion of your property.
Guest amenities	100% deductible	Toiletries, welcome gifts, tea and coffee, and other supplies purchased exclusively for guests.
Booking platform subscriptions	100% deductible	Any subscription tools used exclusively for managing your rental — channel managers, pricing tools, guest communication apps.
Accountant fees (rental-related)	100% deductible	The portion of your accountant's fee that relates to preparing your rental income schedule.
Lock boxes and smart locks	100% deductible	Key safe installations and smart lock subscriptions used for guest access.

Apportioned expenses

These are general property costs that must be apportioned based on the proportion of the year the property was rented. If you rent a room in your home rather than the whole property, an additional floor area calculation applies on top.

Expense	Deductibility	Notes
Mortgage interest	Apportioned	One of the largest deductions available. Note: only the interest component is deductible — principal repayments are not.
Council rates	Apportioned	Your annual council rates, apportioned by rental days.
Building insurance	Apportioned	Home and contents insurance. Landlord insurance is also deductible if you hold it.
Strata / body corporate fees	Apportioned	Both regular levies and special levies are apportionable.
Water and utilities	Apportioned	Electricity, gas, water, and internet — apportioned by rental days. If guests pay for utilities separately, only claim your own usage.
Repairs and maintenance	Apportioned	General repairs to the property. Note the distinction below between repairs (deductible) and improvements (capital).
Land tax	Apportioned	Deductible where applicable. Varies by state — check your state revenue office for current thresholds.
Depreciation	Apportioned	Decline in value of furniture, appliances, and fittings. A quantity surveyor's depreciation schedule is the most accurate method and is itself a deductible expense.
Pest control	Apportioned	Routine pest inspections and treatments for the property.
Garden and lawn maintenance	Apportioned	If the garden is accessible to guests, maintenance costs are apportionable.

Expenses you cannot claim

Expense	Deductibility	Why
Mortgage principal repayments	Not deductible	Only the interest component of your mortgage is deductible — not the principal.
Capital improvements	Not deductible	Renovations that add value to the property (new kitchen, bathroom extension) are capital in nature — they may be depreciable but cannot be claimed as immediate deductions.
Personal use expenses	Not deductible	Any expenses that relate to periods when you or your family used the property personally cannot be claimed.
Expenses for periods not rented or available	Not deductible	If the property was vacant and not genuinely available for rent — for example, held off the market for personal reasons — no deductions apply for that period.

Repairs vs improvements — an important distinction

This is one of the most common areas of confusion for Airbnb hosts and one the ATO examines closely.

A repair restores something to its original condition — fixing a broken tap, repainting a wall, replacing a cracked tile. Repairs are deductible in the year they're incurred (apportioned).

An improvement makes something better than it was originally — installing a new bathroom where there wasn't one, upgrading a kitchen, adding a deck. Improvements are capital expenditure and must be depreciated over time, not claimed immediately.

The line between the two isn't always obvious. If you're unsure, a registered tax agent or quantity surveyor can help you classify the expenditure correctly before you lodge.

A worked example — whole property

A worked example — room in shared home

If you rent a room in the home you live in, the ATO requires a two-variable calculation — rental days and floor area:

The Victorian short stay levy

From 1 January 2025, Victorian hosts face an additional obligation — the 7.5% Short Stay Levy on bookings under 28 consecutive nights.

For Airbnb platform bookings, Airbnb collects and remits this levy automatically so it doesn't affect your income or deduction calculation. However if you receive direct bookings outside Airbnb, any levy you pay to the Victorian SRO yourself is 100% deductible as a rental expense.

There is a principal place of residence (PPR) exemption — if the property is your primary home, the levy does not apply.

What records do you need to keep?

The ATO requires you to keep records for all claimed deductions for a minimum of five years. For each expense category you should retain:

• Receipts and invoices for all expenses claimed
• Bank statements showing payments made
• Your Airbnb transaction history CSV export for the financial year
• A log of nights rented vs personal use
• Floor area measurements if renting a room in your home
• Mortgage statements showing the interest component separately

The fastest way to calculate your deductions

Working out your apportionment rate and applying it correctly across every expense category is time-consuming and easy to get wrong. TaxMyBnb automates the entire calculation — upload your Airbnb CSV, enter your annual expenses, and get a complete breakdown with every deduction correctly apportioned and an accountant-ready PDF to hand straight to your tax agent.

This article is for general informational purposes only and does not constitute tax advice. TaxMyBnb is not a registered tax agent under the Tax Agent Services Act 2009 (Cth). Always consult a registered tax agent or accountant before lodging your return with the ATO.