Sunshine Coast Region, Queensland
Accountant in Kiels Mountain
A second dwelling on the block: guests, family, and the tax on each
Rental income, capital gains and individual returns for Kiels Mountain households, from a CPA practice.
Kiels Mountain is a rural locality 9.2 km south-east of Nambour and 10.4 km west of Maroochydore, with the Bruce Highway along its western boundary. Its land use is principally rural residential. The mountain itself rises to 153 metres and is named after Henry Keil, who selected land on its eastern slopes in 1880.
Kiels Mountain then and now
From Henry Keil's selection to the 2021 Census.
Keil had been the first settler at Diddillibah, on the north side of the mountain, in 1869. Kiel's Mountain State School opened on 23 September 1918 and closed on 15 April 1962; there are no schools in the locality today. At the summit is Avatar's Abode, a 40-hectare spiritual retreat where Meher Baba stayed in 1958. Eudlo Creek passes through the south-east tip.
The population was 657 in 2011, 664 in 2016 and 714 in 2021, across 247 private dwellings. Households averaged 3 people, the median weekly household income was $2,163, and median monthly mortgage repayments were $2,167.
A second dwelling: three questions
Short-stay guests through a booking platform
Why it happens
An owner lets a cottage, studio or spare rooms to guests through an online booking platform.
Why it matters
Under the Sharing Economy Reporting Regime, platforms have reported short-term accommodation transactions to the ATO since 1 July 2023, twice a year, including amounts paid, GST, fees and commissions, and property details. The ATO matches that data against tax returns and activity statements. The host still declares the income in a tax return.
How we help
Our compliance-focused approach ensures every saving aligns with ATO requirements and current legislation. Download the platform's annual earnings summary and keep it with your records.
Private use of the same dwelling
Why it happens
The cottage hosts paying guests some weeks and family the rest of the time.
Why it matters
Expenses must be apportioned where a property was available for rent for only part of the year, used privately for part of it, or let to family or friends below market rent. Costs that relate only to renting, such as booking fees and commissions, are not apportioned by time, and costs from private stays are not deductible.
How we help
We schedule quarterly reviews to avoid bottlenecks and keep lodgement dates on track. Mark guest nights, family nights and empty nights on one calendar.
A granny flat for a parent
Why it happens
An older parent moves into a self-contained dwelling on the block, sometimes after contributing money towards it.
Why it matters
From 1 July 2021, CGT doesn't apply when a granny flat arrangement is created, varied or ended, if it is in writing, shows the parties intend to be legally bound, and is not commercial. The person living there must have reached pension age or need help with day-to-day activities because of a disability. Paying market rent makes it commercial; sharing power and water costs is unlikely to. A later sale of the property is taxed under the normal rules.
How we help
Accurate records and meaningful reports that give you clarity, not confusion. Put the arrangement in writing before the parent moves in or contributes money.
Frequently asked questions
Does Airbnb report my Kiels Mountain rental income to the ATO?
Booking platforms report short-term accommodation transactions to the ATO under the Sharing Economy Reporting Regime, for transactions from 1 July 2023.
Do I still need to declare it?
Yes. The platform's report doesn't replace your own return; the ATO matches the two.
Is a granny flat arrangement subject to capital gains tax?
Creating, varying or ending a qualifying granny flat arrangement isn't, from 1 July 2021, if it is written, legally binding and not commercial, and the occupant is of pension age or has a disability. Selling the property later is taxed normally.
What makes a granny flat arrangement commercial?
Charging market rent. Sharing ongoing household costs such as power and water is unlikely to make it commercial.
Where to next
Have a question?
Set it up in writing
Clear, timely insights for confident decisions.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm