New law threatens holiday home and rental tax breaks

Home owners who rent their properties on short-term leases while they are on holiday could face a massive bill under a new tax grab being considered by revenue-hungry state governments, tax experts warn.

The Tasmanian government is pioneering the new laws that reclassify a main residence as a commercial property for land tax purposes when the owners rent it out on short-term leases, typically for Airbnb.