ATO's new holiday home tax rule: is it time for you to sell?

The tax treatment applied to holiday homes could force owners to contemplate whether the holiday house is worth hanging onto any longer.

The tax changes for holiday homes could force owners to contemplate whether the holiday house is worth hanging onto. Pic: Shutterstock

Under the previous ruling that had been in place for decades, homeowners who attempted to rent out their holiday home could claim deductions for the time it was available for hire, even if the property was vacant. If it was available for rent, you could make the claims.