Do I have to declare private use even for just a weekend?

Yes. The ATO requires all private use to be excluded from your deductible proportion, regardless of how brief. A weekend stay means those two days are private use days.

What if a guest cancels and I use the property myself that week?

A cancellation turns a rental period into a private use period if you occupy the property. The deductible proportion for those days is lost.

Can I claim more in winter when bookings are low?

If the property is listed at a realistic price and genuinely available for bookings — even if no bookings are made — those days count as available for rent. Voluntary non-listing or unreasonable pricing counts as private or non-rental use.

How does private use affect Airbnb depreciation?

The impact of private use on Airbnb depreciation

The ATO's rules on private use apportionment are one of the most important considerations for Airbnb hosts who also use their property personally. Getting the apportionment wrong — in either direction — exposes you to either audit risk or missed deductions.

The core rule

You can only claim deductions — including depreciation — for the proportion of time your property is genuinely available for commercial rental. Any period of private use must be excluded from your deductible proportion.

What counts as private use

Private use includes:

Periods when you personally stay at the property
Periods when family members or friends stay at no charge or below market rates
Periods when the property is not listed for rent on any platform
Periods when it is listed but with unreasonable restrictions (blocked dates, inflated pricing)

Periods of genuine rental preparation — cleaning, maintenance, and repairs between guests — are generally not private use, but the ATO monitors this carefully.

How to calculate the apportionment

Time-based method (most common): Add up all days actually rented or genuinely available for rent. Divide by 365 (or the total days you owned the property in the year). Apply this percentage to your full-year depreciation.

Example:

Rented: 150 days
Genuinely available (blocked in calendar, not used personally): 80 days
Private use: 45 days
Not available (off-market): 90 days
Total rental use: 150 + 80 = 230 days
Apportionment: 230 ÷ 365 = 63%
If annual depreciation is $12,000: claimable = $7,560

Note: Some accountants use actual rental days only (not "available" days) — always discuss the correct method with your tax advisor.

ATO's approach to holiday properties

The ATO specifically scrutinises holiday properties for private use. Key risk factors that attract ATO attention:

Property is in a popular holiday destination and you have not declared any private use
Listings show blocked dates during school holidays (when the owner may be using it)
Deductions claimed approach 100% but the property is not rented 365 days a year

Keeping records

Keep a detailed diary or calendar of:

All confirmed bookings (with dates and rental amounts)
All personal use periods (including brief stays)
Any maintenance or repair periods
Platform listing records showing the property was actively listed

Written by Koste Team · Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai