Hi I am currently renting a room in my 2 bedroom unit to my brother. I am living in the property as well. Can I claim any tax deductions? I tried to search ATO website but could find a satisfactory answer.
These 2 things might put you in a worse financial position than if you just "take the cash". Assuming you don't have a formal lease in place, generally, it's simpler and neater, to simply take some 'board' from your roommate - no deductions, no additional income, no CGT implications.
Hope this makes sense - it's been covered here a few times, so I've just summarised.
Payments from a family member for board or lodging are considered to be domestic arrangements and are not assessable income. In these situations you also can't claim income tax deductions
I agree with the guys above. Prob best to treat it as a private arrangement whereby your brother "boards" with you. Perhaps talk to an accountant and get them to crunch the numbers for you.