Shared Ownership Gains Popularity as Costs Rise
SYDNEY — Australian holiday homes are under pressure as new tax regulations and council permit systems are introduced, affecting the traditional ownership model. The Australian Taxation Office (ATO) has issued a draft ruling classifying many holiday homes as leisure facilities, limiting tax deductions unless the properties are income-generating. Meanwhile, councils like Brisbane are implementing new permit systems to regulate short-stay rentals.
Himanshu Arora, co-founder of Brisbane-based proptech platform Copay, highlighted the challenges facing single-ownership models. According to Arora, “The classic Aussie dream was to buy a whole beach house, claim a heap of deductions and maybe Airbnb it when you weren’t there. Now the tax rules are tightening, the councils are cracking down.”
Impact on Property Market
The move towards more stringent tax treatment and council restrictions is prompting a shift towards shared ownership models. Co-ownership platforms like Copay offer a solution for potential buyers, allowing them to share the costs and management of holiday properties with others. “What we’re seeing instead is people wanting to own the part they actually use,” Arora explained, noting the advantages of shared ownership in reducing financial burdens.
The announcement comes amid rising property prices in coastal areas such as the Sunshine Coast and Byron Bay, further encouraging this trend. Arora added, “Most families can’t stretch to a $2 million beach house on their own, especially if they can’t rely on big tax write-offs anymore.” With the backing of technology, Copay aims to facilitate this shift by managing legal work and property operations for co-owners.
Source: newshub.medianet.com.au
Last updated: 12 March 2026, 10:23 am
