Recent guidance from the Australian Taxation Office has brought renewed focus on how holiday homes are treated for tax purposes. While the guidance does not represent a dramatic shift, it reinforces the importance of how these properties are used, managed and made available as income-producing assets.
The principle is straightforward. To claim the full benefit of deductions, a property needs to be genuinely available to paying guests. This generally means it should be listed at market rates, promoted appropriately and positioned for regular use throughout the year.
A holiday home that is only used occasionally, or left vacant for long periods, may not meet these expectations in practice. This can limit both the property’s financial performance and the deductions available to the owner.
It also presents an opportunity to think differently about how these homes are used.
Curated and corporate stays can help reposition underutilised properties as high-quality, furnished accommodation for guests, professionals and visiting workers seeking short to medium-term stays. Rather than sitting idle, the property can generate income during periods when it would otherwise be empty, while still giving owners the flexibility to use it themselves.
As more homes move into this part of the market, expectations around management are becoming clearer. Safety, compliance, consistency and licensed professionalism are all central to running a property well.
Harrison Stays has been developed with this in mind. Our approach is measured and selective, focusing on well-presented homes that can be managed to a consistent standard, with a clear understanding of regulatory requirements and guest expectations.
For owners, this is a timely moment to review how a holiday home is currently positioned and whether it is supporting both lifestyle use and income potential.
If your holiday home is sitting idle for parts of the year and you would like to explore what a more structured approach could look like, contact our Curated and Corporate Stays Manager, Fiona Britten, at hello@harrisonstays.com.au or request an appraisal of your property below.
