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?
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Q. Derek
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.
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