Is the homestay fee I receive tax free?

Under the ATO’s tax ruling 2001/381, the amount received by a taxpayer with regards to a student who is boarding with them under a homestay arrangement is not assessable under section 6-5 of the ITAA 1997.

This is because the amount paid to you as a host to board a homestay student is used to pay all of the household expenses of the student (e.g. food, phone, electricity, etc).

Please note: This ruling is for hosts intending to board one or two students at any time. We strongly recommend speaking with your financial adviser about your specific circumstances before making a decision to host.