Small accommodation providers are set to be booted off at least one big booking platform if they don't meet new tax requirements that kicked in yesterday. The rules around the so-called "app tax" were designed to make online booking platforms account for GST.
Bigger accommodation providers that make over $500,000 or list more than 2000 bed nights are unaffected - they can opt out and handle their GST as usual. Smaller providers who don't meet the $60,000 threshold for compulsory GST registration are in a different boat.
It's left booking site Expedia pushing them to list their properties on its Vrbo/Bookabach platform, and if they don't meet the new criteria or migrate there, face delisting.
Susie speaks to Ann-Marie Johnson, president of the Bed and Breakfast Association who says many of her members have been left scratching their heads about how they'll be affected by this move. And to explain the changes, Daniel Gibbons, tax partner for Findex.
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