Renting out a room is a good way to earn income, but what does it mean for the Pension?
Renting out a room via Airbnb seemed like a good way for Derek to earn extra income, but what does it mean for his Age Pension?
I have turned part of my home into self-contained Airbnb accommodation. I withdrew a significant proportion of my superannuation and used the funds to convert part of my home into a self-contained unit to earn extra income through Airbnb. Do the changes I have made to my home mean that my home has become an assessable asset for my pension payment? Or do I just have to declare the income that I earn for the income test?
A. If only one part of your home is used to derive an income via Airbnb, then you may well find that this one part of the value of your home is considered an asset. However, it will only be that portion of your home that is classed as an asset, not your entire property.
If you use the area for other purposes and your guests also have access to other parts of your home, then you will only be assessed under the income test, as you have suggested.
You may also be able to claim tax offsets and deductions for the upkeep of your self-contained unit, which may prove financially beneficial.
You should contact Centrelink or seek advice from an accountant to confirm your particular situation.
All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.
Join YOURLifeChoices, it’s free
- Receive our daily enewsletter
- Enter competitions
- Comment on articles