13 January 2026
As Australians return to work after the festive period, Chartered Accountants ANZ (CA ANZ) is urging holiday homeowners to consider how proposed new tax rules coming into effect this year will impact them to avoid being caught off guard.
From 1 July 2026, the Australian Tax Office (ATO) is proposing that certain holiday homes may be treated as ‘leisure facilities,’ preventing owners from deducting interest, rates or maintenance, unless the home is mainly rented to generate income.
CA ANZ Tax Leader, Susan Franks, said holiday homeowners need to closely examine these changes to avoid landing in hot water with the ATO.
“We all worked hard last year and deserve some downtime over the holiday period,” Ms Franks said.
“But by the end of January, we recommend those with holiday homes speak with their Chartered Accountant to understand how these proposed changes will impact their tax affairs.
“As the ATO zeros in on these properties, it’s essential that everyone knows their obligations.”
Holiday homes in popular seasonal areas such as ski lodges or beach houses which are not available for rent throughout peak seasons will trigger ATO attention and may result in the denial of deductions.
Other triggers that will generate ATO interest may include:
- Limited attempts to rent out the property.
- Parts of the property being inaccessible for use by guests.
- Pricing the property well above market rate to drive interest away from the property.
- Renting the property to family or friends significantly below market rate.
“Make sure your property is genuinely available for rent, especially in peak season, advertise widely, set a fair market rent, and avoid restrictions that turn away guests, like ‘no children’, ‘no pets’ or requiring references for short stays,” Ms Franks said.
“Keep thorough records and, reach out to your Chartered Accountant about these changes to stay on the right side of tax rules.”
ENDS
About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents more than 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.
www.charteredaccountantsanz.com
For more information contact:
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AUSTRALIA Owen Roberts, Public Affairs Specialist M +61 422 644 847 Owen.roberts@charteredaccountantsanz.com
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