Invest
Cut it out: ATO cracks down on freeloading holiday home owners
The Tax Office has Aussie holiday home owners in its sights, warning that those who claim deductions for private use are on thin ice.
Cut it out: ATO cracks down on freeloading holiday home owners
The Tax Office has Aussie holiday home owners in its sights, warning that those who claim deductions for private use are on thin ice.

Assistant commissioner Kath Anderson reminded holiday home owners this morning that “as Australians enjoy the Easter break, they should be aware that the ATO is focusing on taxpayers who claim deductions for holiday homes that are not actually available for rent or only available to friends and family”.
“While private use by family and friends of a holiday home is entirely legitimate, it does reduce your ability to earn income from the property. This in turn impacts the deductions you can claim,” she said.
Continuing, Ms Anderson explained that deductions can only be claimed if the property is actually available for rent.
This means holiday home owners can’t claim for periods in which the property is used by family or friends, rent-free.

“It’s not OK to expect everyone else to pay for your holiday,” she said.
It’s also important to remember that if a property is rented out at mates rates, deductions can only be claimed on expenses reaching the amount of income received, Ms Anderson added.
An additional problem is holiday home owners who claim their property is available for rent but actually have little desire to rent it out.
“We see things like unreasonable conditions placed on prospective renters, rental rates set above market rates, or failing to advertise a holiday home in a way that targets people who would be interested in it,” Ms Anderson said.
“Incorrect rental property claims will not go unnoticed. Whether it is a genuine mistake or a deliberate attempt to over-claim, new technology, data matching and other systems allow the ATO to identify unusual claims.”
She said the ATO investigates tip-offs in addition to disproportionate claims.
With this in mind, the assistant commissioner called on property owners to double-check all claims prior to lodging their tax returns, even when submitting via a tax agent.
“Be sure to keep accurate records of the income you receive from your rental property, expenses you incur and evidence of the property being rented or genuinely available for rent at market rates,” Ms Anderson said.
“You should also [keep] records of who stayed at the holiday home and when, including the time you and your family stay at the property.”
How do I know if I’m following the rules?
The ATO said there are four rules to remember to ensure that a holiday home is genuinely available to rent.
1. Is it advertised?
In order for a property to be available for renting, it needs to be advertised to a wide audience. This means advertising via a real-estate agent or property site is not necessarily enough, and neither is advertising via word of mouth or locally.
2. Is it in good condition?
Renters won’t want to rent a property in poor condition and in a poor location, the ATO said. If it’s dilapidated or in a remote location it might not be realistic for owners to expect renters to apply.
3. Are you charging market rates?
If a property owner is charging rates at a level that would deter tenants then it could be considered to be not genuinely available to rent. Similarly, if a home owner is renting it out to family and friends for free then it also won’t meet this rule.
4. Are you accepting tenants?
If you’re refusing tenants for no good reason then the ATO could conclude that you don’t genuinely intend to derive income from it, and are instead reserving it for private use.

Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more

Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more

Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more

Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more

Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more

Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more

Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more

Property
Property advice goes rogue as risks and opportunities knock on every door
A warning from the Property Investors Council of Australia has put a spotlight on the surge of unlicensed financial advice around property strategies. This is no niche compliance issue—it’s a ...Read more

Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more

Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more

Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more

Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more

Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more

Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more

Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more

Property
Property advice goes rogue as risks and opportunities knock on every door
A warning from the Property Investors Council of Australia has put a spotlight on the surge of unlicensed financial advice around property strategies. This is no niche compliance issue—it’s a ...Read more