Do you own a Caravan and wish to hire it out?

You have probably heard about the sharing economy: Uber Eats, Uber X, AirBnB. However, there are more activities attached to this income earning type, like renting your motorhome.

If you are receiving extra income from hiring a caravan or you are planning to start doing so, it is important that you are aware of the tax consequences of that extra income in your pocket. Inevitably, and just like any other income, you will need to report it in your individual tax return. Even more now that as part of the data-matching software from the ATO, all shared economy platforms will send the information to be matched with your records. This means that any omissions may cause fines from the ATO due to omissions in your information.

As you report all income received from hiring out your campervan, motorhome or caravan, you are also eligible to claim deductions associated with the operation and maintenance of your caravan: repairs, maintenance, storage, cleaning, internet, fees or commissions if you use one any of the available apps to hire it out. Please note you cannot include costs that are incurred whilst you are using the caravan for personal use. This means that you will need to apportion the expenses based on the income earning use of the vehicle.

You also need to consider the following:

• You will need to apply for an ABN only if you
  • Are using your RV for income purposes only and not for personal use at all
  • Are trading under a company name for your RV hire income
  • Are managing other people’s RV hires
  • Have more than one RV that you receive income for
• Registering for GST: is only applicable if your total gross income is $75,000 and above
• Keeping all your records for tax time: We will require you to show additional information regarding your claim.

If you have any questions, please contact our office and one of our accountants will help you.