Motel trade body backs Airbnb tax proposal
Hospitality New Zealand has voiced support for an Inland Revenue proposal that would make it easier for Airbnb hosts to pay tax.
That is despite grumbles from some motel owners on social media that homeowners who rent out rooms to travellers have it easy when it comes to red tape.
The tax department is suggesting that people who rent out their house, holiday home or a room in their home for up to 100 days a year should be able claim a fixed amount of $50 a night for expenses against their tax bill, regardless of their actual costs.
The amount would drop to $45 a night if they themselves were renting the property they let out.
Inland Revenue’s public rulings director, Susan Price, said the proposal was designed to simplify tax obligations for people who occasionally hosted guests in their home via websites such as Airbnb or Bookabach.
‘‘People renting out a room in their home can claim costs like advertising and a proportion of the expenses for the time the space is rented including things like rates, insurance and cleaning. What we’re proposing is a standard, nightly amount to claim as costs,’’ she said.
Accommodation providers would still have the option of calculating and claiming their actual costs, but Inland Revenue argued the change would reduce tax evasion and result in more tax being paid overall.
Hospitality NZ chief operating officer Julie White said the move was a step in the right direction. The trade body merged with the Motel Association in 2015.
But she said the Government also needed to consider that commercial accommodation providers paid higher rates and met tougher safety standards than Airbnb and Bookabach hosts did.
‘‘Hospitality NZ seeks an equal playing field for commercial accommodation providers ... to compete fairly with peer-to-peer accommodation providers.’’
Inland Revenue is seeking feedback on the tax proposal by March 22.