The draft QWBA explains how income tax rules apply when a close company provides short-stay accommodation through platforms like Airbnb, Bookabach or Booking.com. It outlines the application of mixed-use asset rules and standard tax rules, detailing when each set of rules is relevant. 

When the mixed-use asset rules apply, the company has taxable income from renting out its dwelling for short-stay accommodation. If the dwelling is used by an associated person, such as a shareholder, or rented for less than 80% of the market value rent, the income is exempt. The mixed-use asset rules also specify which expenses are deductible and how mixed-use expenses are apportioned.

Under the standard tax rules, the company has taxable income from renting out its dwelling and can claim deductions for costs incurred in this activity. There are also tax implications for shareholders or employees who use the dwelling without paying market rent. Shareholders are treated as receiving non-cash dividends, while employees (including shareholder-employees) are treated as receiving employment income. 

CA ANZ supports the publication of the finalised QWBA and believe it will be a particularly useful resource for taxpayers and their advisers. CA ANZ recommends some aspects of the item be reviewed.