How did you report the income in your tax return?
Sub leasing inner city apartment to other people ?
- Thread starter JohnHenry
- Start date
How did you report the income in your tax return?
Fair enough, you manage your risk. Tell ATO that.
Do you think this would be income? Serious question.
If it could be income then what about the expense of what you pay in rent.
A couple per room, well that's ok and the apartment is designed to hold that. This is the difference between sharing accomodation and what JohnHenry wants to do which is rent out all the rooms, have a lease agreement with all those people (lodged with bonds and everything it seems) and have 8 people in a 2 bedroom apartment with himself sleeping on a sofa bed in the lounge.
You took (say) a two BR unit for $600 pw with a limit of two persons on the lease but managed through unapproved sub-letting to earn enough to reduce your outgoings to $60 pw. Or you earned $$ beyond the rent. You don't think the ATO could rule you were involved in the business of running a boarding house yourself? Is your advice that ATO couldn't say, "Where is my share of the profit?"
I am a layman. But a tenant subletting and making a profit beyond what the fair and reasonable break-up of rent for the approved rooms and number of persons is conducting a business. An unapproved and probably illegal business, but ATO still expects to get paid.
The test case is easily triggered when an aggrieved sub-tenant or owner rings ATO to complain.
Added
The other issue is that the owner's insurance is likely voided by the number of persons exceeding the number approved on the lease. Many insurers also require special 'boarding house insurance' where more than four unrelated persons occupy a residence. A fire for example would be most interesting for the owner and 'head tenant/s' on the lease.
Last edited:
I'm not too sure what the right thing to do with the ato was, but I was receiving cash so that took care of that.
The unsigned tenants was always the dodgy part, the property managers knew and the owners just put up with it due to laziness I suppose.
They could have got rid of me and put proper signed tenants in very easily. I always decorated very nicely and kept things looking classy (to get max rent) so they never bothered.
The unsigned tenants was always the dodgy part, the property managers knew and the owners just put up with it due to laziness I suppose.
They could have got rid of me and put proper signed tenants in very easily. I always decorated very nicely and kept things looking classy (to get max rent) so they never bothered.
I suppose if there had been a fire and someone died, this bit would help you at your court case
.
Unless they are lighting joss sticks on the balcony. Isn't that how the Bankstown one started? or maybe it was the air conditioning unit on the balcony.
It possibly could be deemed a business. But if that happened then you would have the rent you paid to the landlord as a deduction too.
well, all of the income that I received from my workplace is of course declared successfully, while the income from rent is not that much to be reported since I have to pay the bills myself (under my name).
Well, if you start to declare it to ATO, then they'll get suspicious of what sort of business is that generating the money ?
that is why it would be better off just cash in hand for safety but partially convenient.
Aaron, what about the heater :-o
I guess the recent news about the fire outbreak in bankstown NSW (http://www.news.com.au/national/broken-pieces-of-a-life-full-of-promise/story-fndo4bst-1226466607020) was due to the heater ?
You are my worst nightmare.
Short answer is no, for a multitude of reasons.
1. The owner must give you permission to sublet in writing in NSW
2. Whilst the owner can not unreasonably say no, changing the lease from 1 persons residing there to 7 people residing there is enough of a reason to decline in the eyes of the tenancy act.
3. Most buildings in Sydney are also starting to crack down on this type of sub-letting sue to the fire safety risks.
This isn't your flat. How about you go and buy a property and THEN sublet it to 100 people. Then you can do what you want! Within the local council guidelines that is...
Short answer is no, for a multitude of reasons.
1. The owner must give you permission to sublet in writing in NSW
2. Whilst the owner can not unreasonably say no, changing the lease from 1 persons residing there to 7 people residing there is enough of a reason to decline in the eyes of the tenancy act.
3. Most buildings in Sydney are also starting to crack down on this type of sub-letting sue to the fire safety risks.
This isn't your flat. How about you go and buy a property and THEN sublet it to 100 people. Then you can do what you want! Within the local council guidelines that is...
They'll just bring their own portable gas stoves.
If this is making you money, why stop at one unit? In for a penny, in for a pound.
Cool, that is what I'd like to achieve but obviously people in this forum has enlighten me with the information that this practice is not legal.
But yes, everyone else in the city CBD doing it
