The short answer
Airbnb deducts its service fee directly from your payout before the money reaches you. For most Australian hosts today, that deduction is roughly 15.5% of the booking subtotal — meaning the accommodation charge plus any fees you have set, such as a cleaning fee.[1] The guest's checkout total is a different number, and the two are not the same thing. If you are also using a property manager, their fee sits on top of the platform fee and is calculated separately. This article explains each layer so you can build an honest cost model before you decide how to list your property.
How Airbnb charges hosts in Australia
Airbnb uses what it calls the host-only model, also referred to as the single-fee model. Under this structure, Airbnb deducts its entire service fee from your payout rather than splitting the charge between you and the guest.[1]
For most Australian hosts, the deduction is approximately 15.5% of the booking subtotal. Airbnb's own guidance puts the typical range at 14–16%, with variation depending on your listing type and account circumstances.[1] The fee is applied to the amount Airbnb defines as the booking subtotal — broadly, your nightly rate plus any host-set fees such as a cleaning charge or extra-guest fee — not to taxes or the guest service fee where one applies.[2]
The deduction is automatic. Airbnb calculates it and pays you the remainder, so the figure you see in your payout statement is already net of the platform fee.[3]
GST can apply to Airbnb's service fee in Australia.[4] Whether the displayed fee is GST-inclusive, and what your own GST obligations are as a host, depends on your individual tax position. The ATO's rules on GST registration and short-term accommodation are worth checking with your accountant before you go live.
Host-only versus the legacy split fee
Until recently, many hosts operated under a split-fee model where the host paid roughly 3% and Airbnb charged the guest a separate service fee on top of the accommodation price.[1] That arrangement is being phased out. Airbnb is migrating home hosts to the single-fee structure, and once a listing moves across, it cannot switch back. New bookings after migration are governed by the host-only rate; existing reservations can remain on whatever terms applied when they were made.[1]
The practical difference is significant. Under the split model, your headline 3% looked modest, but guests were paying an additional Airbnb fee that made the total cost of staying higher. Under the host-only model, there is no separate guest service fee for migrated listings, and all of Airbnb's revenue from the booking comes out of your side of the transaction.[5] If you are still on the split-fee model, check your Airbnb account — your migration may already be scheduled.
| Fee model | What the host pays | What the guest pays to Airbnb | Status in Australia |
|---|---|---|---|
| Host-only (single fee) | ~15.5% of booking subtotal | No separate guest service fee | Current standard; being rolled out to all hosts |
| Legacy split fee | ~3% of booking subtotal | Separate guest service fee added at checkout | Being phased out; not available after migration |
What the guest pays and what you receive
These two numbers are routinely confused, and conflating them leads to overestimating your income.
The guest's checkout total can include:
- Your nightly rate multiplied by the number of nights
- Your cleaning fee
- Any other host-set fees (extra guests, pets)
- Applicable taxes and levies
- A guest service fee, where the listing is still on the split-fee model[5]
Your payout is a different calculation:
- Your nightly rate plus host-set fees
- Less Airbnb's host service fee (~15.5% of that subtotal)[2]
- Taxes and pass-through items may appear as separate lines
The gap between what a guest pays and what you receive is not simply the platform fee. Taxes charged to the guest, for example, are not paid to you. When you are modelling whether short-term letting is worthwhile for your Sydney property, use the payout figure — not the guest's total — as your starting point.
Airbnb has also moved toward showing guests an all-inclusive price in search results.[5] This affects how competitive your listing looks, particularly if your cleaning fee is high relative to the nightly rate on short stays.
Where the cleaning fee sits
Your cleaning fee is a flat, per-booking charge that you set. It appears separately in the guest's booking total (unless Airbnb's total-price display applies) and is included in the amount on which Airbnb calculates its host service fee.[6]
That means roughly 15.5% of your cleaning fee goes to Airbnb, not to you. If you charge $150 for cleaning, you receive approximately $126.75 of it after the platform deduction — which then needs to cover the actual cost of the clean, linen, laundry and any consumables. The cleaning fee is a revenue line, not a profit line.
Airbnb's own guidance is clear that the cleaning fee is intended to cover the host's post-stay turnover service. It is not a mechanism to impose detailed checkout labour on guests: requiring guests to strip beds, do laundry or vacuum is inconsistent with how Airbnb defines the charge, and can generate complaints.[6] Basic checkout requests — removing rubbish, locking up — are reasonable.
If you are considering a managed letting arrangement for a property in a suburb like Double Bay or Pyrmont, ask the manager how they set and account for the cleaning fee: whether it is set to recover the actual cost of each turnover, whether linen is included, and how the net amount flows through to you.
A worked example, end to end
This is an illustration using round numbers. It is not a real property or a forecast of what your property will earn.
Scenario: Two-bedroom Sydney apartment, $300 per night, 5-night booking, $150 cleaning fee.
| Line item | Amount | Notes |
|---|---|---|
| Accommodation (5 nights × $300) | $1,500.00 | Your nightly rate |
| Cleaning fee | $150.00 | Host-set, per booking |
| Booking subtotal | $1,650.00 | The base on which Airbnb calculates its fee |
| Airbnb host service fee (~15.5% of booking subtotal) | −$255.75 | ~15.5% of $1,650[1] |
| Payout before other costs | $1,394.25 | What Airbnb pays into your account |
| Actual cost of the clean | −[your cost] | Cleaner's invoice; set against the cleaning fee received |
| Management fee | −[ask each manager] | Percentage varies by manager; the base it is charged on also varies — some charge on the payout, some on the booking subtotal, some on the accommodation component only. Two managers quoting the same headline percentage may leave you with different net income. Ask for the percentage, the base, and whether GST is included. |
| Net to owner (this booking) | Fill in | After platform fee, cleaning cost and management |
This example covers one booking. A full feasibility model must also include vacancy (not every night books), utilities, insurance, maintenance, furnishing replacement, and NSW government registration charges. Multiply across realistic annual occupancy — not 365 nights — before comparing the result with what a long-term tenant would pay.
What the platform fee does not cover
Airbnb's service fee buys you access to the platform, search visibility and payment processing. It does not cover:
- NSW STRA registration. Any property used for short-term rental accommodation in NSW must be registered on the state's STRA register before it operates. Fees and requirements are set by the NSW Government; check the current amount on the NSW Planning Portal rather than relying on a figure in any article, as registration costs can be updated.
- The 180-day cap. Non-hosted short-term rental properties in Greater Sydney are generally limited to 180 days per calendar year under NSW planning rules. Exceeding it is a compliance breach, not a platform issue.
- Fire safety compliance. NSW requires registered STRA properties to meet specific fire-safety standards, including smoke alarm requirements. This is a condition of lawful operation, not something the platform manages for you.
- Insurance. Standard home and contents policies generally do not extend to short-term letting. AirCover applies to Airbnb bookings only; it is not a substitute for a dedicated policy, and bookings from other channels — Stayz, Booking.com — carry no equivalent protection. Owners commonly look at specialist products from RentCover, ShareCover and Terri Scheer. Read the product disclosure statement for each and speak to a broker before you decide; this is not a recommendation of any particular product.
- Tax. Income from short-stay guests is generally assessable income. Airbnb's platform fee is likely deductible as an operating cost, but apportionment rules apply if the property is also used privately. Keep records and get advice from your accountant — the ATO's treatment of short-term rental income is an active area of compliance attention.
- Your time. Guest communication, check-in coordination, cleaning oversight and maintenance calls are real costs even if you do not pay them in cash.
Owners who list on a fully managed short-term rental service hand most of the operational work to a manager, but the management fee then becomes a line in the cost model that must be weighed alongside the platform fee and everything above.
Questions owners ask
Does Airbnb take 15.5% of everything the guest pays?
No. The ~15.5% is applied to Airbnb's defined booking subtotal, which is broadly your accommodation charge plus host-set fees like cleaning. It is not applied to taxes charged to the guest or, under the host-only model, to any guest service fee (there is none). The guest may pay more than the booking subtotal, but those additional amounts do not all flow to you or to Airbnb's commission calculation.[2]
Can I use a high cleaning fee to shift revenue away from the nightly rate?
Some owners try this to reduce the base on which Airbnb charges its fee, or to make a low nightly rate look more competitive in search. The problem is that Airbnb includes the cleaning fee in the booking subtotal for fee purposes anyway, so there is no fee saving. And Airbnb now shows guests all-inclusive pricing in many search contexts, so a high cleaning fee simply makes your property look expensive for short stays. Set the cleaning fee to recover what the turnover actually costs you, and use minimum-night settings if one-night bookings are uneconomic.[6]
Are Airbnb's fees tax-deductible?
Platform fees connected with earning assessable short-stay income are generally an operating expense, but the deductible amount may need to be apportioned if the property is used privately for part of the year or if only part of the dwelling is let. The same applies to cleaning, insurance and other costs. This is a question for your accountant, not the platform.
Does it matter whether a manager holds a real estate licence?
In NSW, a company that arranges short-term stays and collects guest money may need to hold a licence under the Property and Stock Agents Act 2002. If they do hold one, guest funds should sit in an audited trust account rather than the company's operating account. When you are comparing managers, ask for the licence number and class, the name of the licensee in charge, and whether your money is held in trust. You can check a licence on the NSW Fair Trading register.
How do I compare management fee quotes when managers use different bases?
Two managers both quoting, say, 20% can leave you with very different net income depending on what that percentage is applied to. One might charge 20% of the payout (after Airbnb's fee); another might charge 20% of the booking subtotal (before Airbnb's fee). On a $1,650 booking subtotal with a ~$256 Airbnb deduction, the difference between those two bases is meaningful. Always ask: what percentage, applied to what amount, and does that percentage include GST?
Is short-term letting in Sydney more profitable than a long-term tenancy?
It depends entirely on the property, the neighbourhood, actual occupancy and all operating costs. The common mistake is multiplying the nightly rate by 365 and comparing that number with annual rent. A realistic model uses conservative occupancy, deducts the platform fee, cleaning, management, utilities, maintenance, insurance and registration, and compares the net result with the net long-term rent after agent fees and maintenance. There is no universal answer, and no article should promise you one.
If you want a starting point for your suburb, the HomeHost earnings calculator asks for your suburb, number of bedrooms and property type — it does not need a street address.
Ready to work through the numbers for your property? Get in touch with HomeHost and we can talk through how the platform fee, management costs and Sydney's regulatory requirements fit together for your specific situation.
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