With many of the recent announcements in the migration space being linked to accommodation issues, homestay provider MyStay International (MSI) has come up with an innovative idea to address supply.
MSI, in conjunction with the Australian Homestay Network (AHN) is calling for the government to create and clarify the incentives for people to offer their spare rooms to recognised standards-based international student-hosted accommodation providers.
What’s the potential size of the offer?
According to MSI the most recent Australian Census confirms that there is a very large supply of empty rooms throughout Australia – approximately 13,000,000. Unlocking these rooms will go a long way towards taking the heat out of the accommodation debate.
So what’s the suggestion?
In short, tax incentives for opening an unoccupied room.
MSI and AHN have come up with suggested wording for the ATO position regarding Hosted Accommodation (Homestay) Programs:
The ATO deems that revenue received from properly managed, standards-based, and industry-recognised Hosted Accommodation (Homestay) programs is not accessible under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997).
For this exemption, the Hosted Accommodation (Homestay) program is seen to be provided for international students (or equivalent), domestic students, and National Disability Insurance Scheme (NDIS) related programs.
Taxpayers who participate as providers of Hosted Accommodation (Homestay) programs as detailed above will also be entitled to a tax deduction of 20% of any revenue from such programs; for example, a Host of International Students receiving $5,000 per annum income through an industry recognised provider, shall be eligible to claim $1,000 tax deduction (20% of receipts).
The above is pitched as only available through hosted accommodation (homestay) placements made through industry-recognised providers. The NSW government has already appointed NEAS to endorse appropriate hosted accommodation providers meeting the agreed standards.
David Bycroft, AHN Founder and Director said “We believe that all new international students arriving in Australia should start with properly managed hosted accommodation so that the student can be properly oriented, welcomed, and form a local connection that assists with networking and decision-making for the future.”
“It is predicted that many of the students will stay in the hosted accommodation for much longer, taking the pressure off other forms of accommodation.” He said.
With new asset classes being considered by planning authorities to fast-track purpose-built student accommodation, this suggestion appears to be a very tangible one that could be implemented with relative ease.
