Airbnb vs Long-Term Rental: The Real Numbers in Brisbane

Brisbane's inner east is one of Australia's strongest short-term rental markets, particularly around Bulimba, Hawthorne, and New Farm. But the decision between short-term and long-term rental is more complex than comparing headline nightly rates. The real answer depends on costs, time, regulation, and risk.

The gross income comparison

A well-positioned 3-bedroom house in Bulimba or Hawthorne currently achieves the following approximate figures (based on 2025-26 market conditions):

At headline level, short-term rental wins on gross income. But gross income is not the metric that matters. Net cash flow after all costs is.

The cost comparison

A conservative estimate for additional annual costs on a short-term listing (cleaning, utilities, furnishing amortisation, platform fees, higher management) compared to long-term is $15,000 to $25,000 per year. That gap erodes much of the gross income advantage.

Queensland regulation: what you need to know

Queensland does not have a single short-term rental registration framework at the state level (as at 2026), but Brisbane City Council planning rules apply. Under BCC CityPlan 2014:

Tax treatment

Both long-term and short-term rental income is assessable for income tax. The key difference is GST. If your short-term rental turnover exceeds $75,000 per year across all commercial activities, you may be required to register for and remit GST. Long-term residential rental is input-taxed (GST exempt). Consult an accountant before committing to a STR strategy.

Capital gains tax is also affected. If a primary residence is used for short-term rental for part of the ownership period, the main residence CGT exemption may be partially lost when you sell.

Selling a property that has been rented on Airbnb

If you are selling a property that has been operated as a short-term rental, three issues arise that do not apply to a standard residential sale: CGT main residence apportionment, potential GST on the sale, and mandatory disclosure to the buyer under Queensland's updated property law.

CGT apportionment in detail: Under the Income Tax Assessment Act 1997 (Cth), using your home to produce income changes the character of the property for tax purposes. If you rented out part of the home while living there (for example, two bedrooms on Airbnb while occupying the rest), the CGT main residence exemption is reduced in proportion to the floor area used for income as a fraction of total floor area, over the period it was used that way. If you vacated and listed the entire property on Airbnb, the six-year absence rule may apply if the property was treated as your main residence before you left, but income derived during the absence can limit or remove the exemption. The ATO requires you to establish a market valuation at the point the property first became income-producing, and the capital gain is calculated from that date. On an inner-east Brisbane property where values have moved substantially, this is not a minor consideration.

GST on sale: If your STR gross turnover exceeded $75,000 per year and you were registered for GST, the sale of the property may attract GST. The margin scheme can reduce the liability and the going concern exemption may apply if the business is continuing, but neither applies automatically. If you never exceeded the GST threshold, the sale is not subject to GST regardless of the STR history. Confirm your position with a tax accountant before you list.

Disclosure obligations when selling: Queensland's Property Law Act 2023 introduced mandatory seller disclosure statements. Material facts that affect a buyer's use of the property must be disclosed before contract. If the property operated under a development approval for short-term accommodation, the DA and any conditions are material facts. If the property is in a body corporate scheme with a by-law restricting or banning short-term rental (permitted from 25 October 2023 under the Body Corporate and Community Management Act 1997 amendments), those restrictions carry over to the buyer and must be disclosed. A buyer who later discovers undisclosed STR compliance issues has grounds to rescind or claim compensation. Inform your selling agent and solicitor of the STR history before the disclosure statement is prepared so they can advise what must be included.

When short-term makes sense

When long-term is the better call

Income and cost figures are illustrative estimates based on 2025-26 inner Brisbane market conditions. Short-term rental income is highly variable. Always obtain independent financial and tax advice before making investment decisions. BCC planning rules: cityplan.brisbane.qld.gov.au. ATO rental income guidance: ato.gov.au.