How to start an Airbnb business in Australia | 2025

Thinking about how to start an Airbnb business in Australia? The process is exciting, but knowing where to begin can feel overwhelming. In this blog, we’ll break down how to start your Airbnb business. We’ll cover the groundwork for long term success as well as answer frequently asked questions to help you launch with confidence.

How does an Airbnb business work?

An Airbnb business functions through hosts renting out their properties to guests through the Airbnb platform. Most rentals are short-term stays. The host uploads photos of their accommodation, sets a price, lists the house rules, and updates the availability of their property. Guests are then able to browse these listings and book a property or room through the website or app. Both guests and hosts are able to leave reviews after their stays.

Airbnb works as the middle-man who handles payment and enables communication between the host and guest.

Starting an Airbnb business in Australia

Thorough research is key before starting any business, as it will help to establish a foundation for future success. The following step-by-step guide provides everything you need to know to start your Airbnb business in Australia.

Understanding the market

Market research is key to identifying factors like your target audience and the level of demand. Have a look on Airbnb in your local area for spaces that are similar to your room or property. Review the pricing and availability, then compare these different pricing models to determine which approach will position your space most competitively within the market.

This is also a great opportunity to find your property’s main selling factor. Consider what makes your property unique from the other competition. Highlight distinctive features like pool access, outdoor space, and beach views to market your space effectively. Additionally, research price points of similar properties to make sure your rates are competitive.

Checking local laws and regulation requirements

Adhering to local laws and regulations is essential for operating a compliant Airbnb business. There are short-term rental laws that are local to each state along with general regulations that you must follow. Here are the main laws and regulations to be aware of:

• Local Registration - Your local council may require your property to be registered. Failure to do so can result in fines and your Airbnb listing being terminated.
• Business Registration - If hosting under a business name with additional staff or branding, you'll have to register with ASIC (Australian Securities and Investments Commission)¹ and apply for an ABN (Australian Business Number).²
• Zoning Regulations - Zoning laws limit short-term rentals to a certain number of nights per year. The cap is typically in residential areas so check with your local council to see if they affect your property.
• Tax Laws - You must report your Airbnb rental income in your tax report. The amount you earn may influence the amount of tax you need to pay.

You can use the Australian Government’s Business Registration Service³ for easy business applications, and to gain a Goods and Services Tax number (GST). Find the local council for your property on the Australian Local Government Association.⁴

Preparing your space

Make sure your property is clean and well-equipped for guests to stay. Check the smoke alarms work and stock some basic essentials like toilet paper and soap. Once everything is ready, take high-quality photos to upload in your listing. Capture the charm of your space and include clear shots of every room.

Listing it on Airbnb

Create your listing on Airbnb’s website. Include a clear description that outlines exactly what your property offers and what guests can expect. Upload high-quality, well-lit photos that accurately represent each room and highlight your listing’s best features. Use your earlier market research to set a competitive price.

Opening a business account

Opening a dedicated business bank account helps maintain financial transparency and scale your Airbnb to international heights. If you mix personal and business accounts, it becomes harder to keep track of your Airbnb transactions and might also run into issues while filing your tax report.

A dedicated business account helps you keep personal and business finances separate. It also makes it easier to track income, manage expenses, and handle tax reporting. You stay organised and avoid confusion.

For hosts welcoming international guests, a multi-currency account is a smart choice. It lets you accept payments in different currencies, making it easier to manage global transactions for those with properties in multiple locations.

A Wise Business account gives you local account details in over 8+ currencies. With the Wise Business multi currency account, businesses can access local payment methods with ease, hold over 40+ currencies, and send payments to over 140+ countries. Currency conversion with Wise Business is made at the mid-market exchange rate with no hidden markups, allowing simple foreign currency transactions without paying more than required.

Sign up for the Wise Business account! 🚀

How much does it cost to start an Airbnb business?

The capital required may vary, but there are some important expenses to keep in mind:

• Property prices (down payments, mortgages, renovations)
• Cleaning (purchasing materials and hiring services)
• Furnishing your property (beds, extra bedding, basic essentials)
• Utilities (electric, wifi, water)
• Airbnb fees (around 3% from each booking)
• ASIC business name fees ($44 dollars a year)⁵

Launching your Airbnb business and setting up the accommodation is often the most expensive part, so you may want to consider applying for a start up business grant to cover these initial costs.

How much can you make owning an Airbnb?

Owning an Airbnb can be a lucrative business that enables a better work life balance and flexibility. According to Airtbtic’s data, the average income of an Airbnb owner with a single listing stands at $62,388 per year.⁶

Despite this, how much you make generally depends on the property’s availability, its price point, location, and number of positive reviews.

Is Airbnb income taxable in Australia?

Yes - you are required to pay tax on your Airbnb income. It’s important to declare these earnings when filing your annual tax return. All income is subject to Australian tax laws so this applies to any overseas properties listed on Airbnb too.

Managing overseas Airbnb properties from Australia

It’s simple to manage bookings, guest communication, and pricing remotely using the Airbnb app. Leveraging a multi-currency bank account is an effective way to handle different currencies as though you are a local, streamlining your finances.

A trusted local co-host can then handle on-site tasks like check-ins, cleaning, and general maintenance.

Wise Business to manage multiple currencies from Airbnb properties

Scale your Airbnb business internationally and manage global transactions easily with Wise Business. Connect with guests around the globe without losing money on cross-currency transactions, manage international payments effectively, and receive funds at the real exchange rate.

What's more, you'll benefit from the following with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, Quickbooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

FAQs on starting an Airbnb business:

1. What is the 90 day rule on Airbnb?

Some parts of Australia only allow Airbnbs to host guests for up to 90 nights each year. These rules depend on where the property is, so it’s important to check with your local council.

2. How profitable is an Airbnb business?

An Airbnb can be very profitable! Your profit depends on factors like the location of your property, your pricing, and your general overhead costs.

3. Can you get a business loan to set up an airbnb business?

Yes, you can get a business loan to kickstart your Airbnb business. Operating an Airbnb constitutes a business. Therefore, you can apply for grants and business loans. Learn more about Australian business start-up loans with our comprehensive guide.

4. Do you need a business license for Airbnb in Australia?

Running an Airbnb business in Australia as a sole trader does not require a business license. The Australian Securities and Investments Commission¹ requires registration and an Australian Business Number application for businesses operating under a business name with employees.

5. Can I start an Airbnb business without owning property?

You can start an Airbnb business without owning the property, though you must get permission from your landlord before subletting. Alternatively, you can try co-hosting. This is where you manage Airbnb listings for a property owner.

Sources:

1. https://asic.gov.au/for-business/registering-a-company/
2. https://www.abr.gov.au/business-super-funds-charities/applying-abn
3. https://register.business.gov.au/registration/type
4. https://alga.com.au/resources/council-maps-boundaries/
5. https://asic.gov.au/for-business/payments-fees-and-invoices/payment-options/business-name-fees-and-payment-options/
6. https://airbtics.com/starting-an-airbnb-australia/