By Rowland Hill, Noosa Resident
The taxman has joined the fight against exploitation of Noosa’s Short Stay Let (SSL) local law.
From July 1 last year the Australian Tax Office (ATO) has increased the number of electronic distribution platforms that must report income generated by short term renting.
The ATO says that by matching this income against tax returns or activity statements it will get clear visibility of income earned.
One loophole in Noosa’s SSL Local Law is the controversial concession that allows owners to short stay let a property that is their Principal Place of Residence (PPR) four times each year for a maximum of 60 days. The dwelling must be approved and registered, and the Council SSL registration number displayed kerbside.
Noosa Council defines a Principal Place of Residence as a single dwelling that is the owner’s declared address for electoral, taxation and other purposes.
Noosa Councillors devised the rental concession acknowledging that some Noosa residents generated income for holidays or other discretionary spending by short-term renting their dwellings.
In practice the concession is being exploited by out-of-town investors, with Council approval. The Sharing Economy Reporting Regime initiative by the ATO will discourage this practice.
The extended ATO reporting regime will also discourage exploitation of the difficult-to-monitor PPR rental time-limit. Council has suggested a Stasi-style approach to monitoring, advising some concerned residents to log rental activity at these properties. Many are unhappy with this proposal.
Where owners use management businesses to rent ‘granny flats’ (another SSL loophole) will also be constrained by these new ATO initiatives.
RAUSTRA representatives discussed the possibility of ATO support for Noosa Council’s SSL Local Law enforcement when it met with Deputy Mayor Frank Wilkie before Christmas.
Editor's Note:
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And how do they track the unregistered ssl's