Recreational vehicle (RV) owners can now cut back on their expenses after the Australian Taxation Office (ATO) formalised its decision to allow them to claim tax deductions without needing to be set up as a business.
Under the new rule, people who list and hire out their caravan, camper , or motorhome on the sharing economy platform Camplify can claim tax deductions on all expenses associated with their properties. These include depreciation, repairs, maintenance, insurance, consumables, cleaning, and management fees.
Owners can claim 100% of their expenditures that are directly linked to the hiring out of the RV for the time they are listed on Camplify.
This ruling marks the first time Aussies using sharing economy platform will be able to claim personal tax deductions.
To further aid property owners, Camplify has created a tax pack with full details, including an online tax calculator that will divide your personal vs business deductions and give users the total amount they need to enter in their tax return.
“The ATO is aware that the sharing economy is an evolving space and will be making changes to the tax return forms in the future to allow greater flexibility,” said Camplify CEO Justin Hales.
The Australia Taxation Office noted though that caravan and RV owners are expected to allocate the expenses accordingly, should they use their motorhome or van for personal use.
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