Sharing the wealth
28 Sep 2018
Renting out your house, your car, or your skills – via a range of new technology and apps – is the new way to make extra cash. But is it right for seniors?
If your income is in need of a boost, the sharing economy could be your answer.
The NSW Government is certainly seeing the possibilities. In April, it kicked off an Australian-first pilot program, which encourages NSW Seniors Card holders to sign up as an
Airbnb (airbnb.com) host.
Those who take the leap will receive a $100 cash reward when they successfully complete their first booking of three nights or more. Apart from the financial benefits, opening your home to travellers from across Australia and the world can be a great way to build connections.
To list your property or a room on Airbnb is free. Then, when someone books your place, Airbnb charges a standard host service fee of three per cent of the listed price.
The beauty of Airbnb is you can decide how much you want to charge, who stays, and when it’s available. So if you decide to head off on a trip of your own, you can simply change your available dates on your online profile.
Announcing the partnership was Sam McDonagh, country manager for Airbnb in Australia
and New Zealand, who describes older people as the “most loved” or highest-rated hosts on Airbnb. “With 85 per cent of these stays receiving five-star reviews, we want to encourage more seniors to turn their empty nests into income engines,” McDonagh says.
One in five Australians now use the sharing economy to give their bank balance a lift, according to research by comparison site finder.com.au. It found, on average, Australians earn an extra $7,300 annually through the sharing economy. Ride-sharing service Uber was the most lucrative way to top up the coffers, delivering an extra $10,490 in income on average.
Renting out a spare room via Airbnb earned property owners $8,140 on average, and doing chores for other people through Airtasker or Fiverr could bring in an extra $590.
The survey of 2,000 people found 17 per cent of adults rented out their property or spare room via Airbnb; seven per cent have been an Uber driver; and six per cent earned some dollars freelancing or doing chores.
Looking for other potential money-spinners? The box to the right outlines a few other opportunities to make additional dosh from the sharing economy. However, if you’re tempted to turn your home, car, or campervan into a money-maker, don’t forget
the taxman may want his take. Earnings made through the sharing economy must be declared like any other income.
National Seniors points out your home could become an assessable asset if a bedroom or self-contained flat is used purely for Airbnb guests. Or you may face capital gains tax if you sell your primary home after using it to make additional income on Airbnb.
Another thing to consider is the impact any additional earnings may have on your pension. The money earned through bookings could be means tested and lead to a reduction in your pension.
To make sure you’re clear on the financial implications of diving
into the sharing economy, be sure to talk to your accountant or Centrelink beforehand.
One in five Australians now use the sharing economy to give their bank balance a lift, according to research by comparison site finder.com.au. It found, on average, Australians earn an extra $7,300 annually through the sharing economy
Show me the money
If you’re already a convert to the money-making possibilities of the sharing economy, you may be ready to explore beyond Airbnb and Uber.
Other online platforms that offer the opportunity to bring in some extra dollars include renting out your garage or car space on Spacer; looking after other people’s pets via Mad Paws; and renting out your caravan, campervan, RV, or camper trailer on Camplify.
Got tools, sporting equipment or household appliances that are seldom used? Check out Open Shed. Or love to cook and happy to share? Try your luck on FoodByUs.
®