Collaborative consumption, Airbnb and land tax - time for a national approach

With the exception of the Northern Territory, land tax is a core measure used by states and territories to raise revenue. In all jurisdictions that levy the tax, the principal place of residence of the owner is exempt from imposition. In this article, we consider this exemption and whether that exemption is lost when part of a house is let on Airbnb. As will be shown, the states and territories differ in their approach, and it is our view that these differences cannot be justified. At the very least, a national solution should encompass a collective view as to when the exemption should apply. It should also embody this view in legislation, rather than in the policy rulings of revenue offices.