Claiming GST on your allowable rental expenses

What

Renting residential property short-term and claiming GST on the allowable rental expenses.

If you’ve registered for GST you can claim the GST on expenses for goods and services. You can do this for goods and services used, or available for use, when you're renting out short-term.

How you use your property for short-term renting is the best way to see what GST you can claim:

How the property is used	How to work out what GST you can claim
All of the property is rented out. No private use.	You can claim GST for all your short-term rental expenses.
All the property is rented out (income-earning use) some of the time. The property is used privately for some of the time. Vacant for 62 days or more. The mixed-use asset rules apply.	Work out GST under the mixed-use asset rules.
All the property is rented out (income-earning use) some of the time. The property is used privately some of the time. Not vacant for 62 days or more. The mixed-use asset rules do not apply.	Claim GST on all expenses for income-earning use. Do not claim GST on private use expenses. Split shared rental expenses based on the days the property was used and available for use.
Renting out a room. Renting out part of a property.	Claim GST on all expenses for income earning use. Do not claim GST on private use expenses. Split shared rental expenses using the days the property was used.

Mixed use assets

Actual cost method for working out rental income and expenses

GST adjustments for business or private use

GST adjustments for mixed use assets

Claiming GST on the property purchase

You may also be able to get a GST input tax deduction for the purchase of your property (or claim some GST if you owned the property before you registered for GST and started short-term renting).

Special rules apply for second-hand goods purchased from associated persons and those where the mixed-use asset rules apply.

If you change the use of your property from taxable to exempt, or sell it, you must account for GST on disposal.

Claiming GST

Charging GST and special supplies

GST and selling or changing the use of a rental property