Money you earn from renting out a room in your house is rental income. This applies to rooms rented by traditional means or through a sharing economy website or app [e.g. AirBNB].

You can only claim expenses related to the part of the house you rent out and you need to apportion the expenses accordingly. However, you can claim 100% of any fees or commissions charged by the rental facilitator or administrator.

The ATO has examples to help you understand how claiming deductions works when renting rooms, or your main residence on an occasional basis.

Capital gains tax may also apply if they sell property used to generate rental income.

For further details click here.