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Property

If you're 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-stay accommodation.

The use of your property for short-stay renting will determine what GST you can claim.

How the property is used How to work out what GST you can claim
  • The whole property is rented out.
  • No private use.
  • You can claim GST for all your short-stay rental expenses.
  • The whole 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.
 
  • You can claim GST on expenses based on the mixed-use asset rules before 1 April 2024.
  • For periods after 1 April 2024, you can use the mixed-use asset rules or another fair and reasonable method to apportion costs to reflect the extent of income-earning use of the property.
  • 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.

 
  • You can claim GST on expenses relating only to income-earning use.
  • Do not claim GST on private use expenses.
  • Split shared rental expenses based on a fair and reasonable method, for example the days the property was used and available for use.
  • Renting out a room.
  • Renting out part of a property.
  • You can claim GST on all expenses for income earning use.
  • Do not claim GST on private use expenses.
  • Split shared rental expenses based on a fair and reasonable method, for example the number of days the property was used and available for use.

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 renting out short-stay accommodation.).

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

Last updated: 02 Apr 2024
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