Forget the traditional house and land package; Australia’s hottest new property investment might just be sitting in your driveway.
With nearly a million caravans across the country gathering dust for most of the year, a little-known tax loophole is transforming these idle assets into legitimate income-generating ventures, complete with tax deductions akin to a rental property.
As cost-of-living pressures bite and traditional investments waver, the humble caravan is emerging as a surprisingly savvy asset.
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Justin Hales, CEO of ASX-listed caravan-sharing platform Camplify, reveals how a landmark 2018 Australian Taxation Office ruling has fundamentally reshaped the financial landscape for RV owners.
“It effectively means that you can treat the vehicle the same way as you could a rental property,” Hales told Yahoo Finance.
Ellen and Bob Haywood, of Woodville West, in their 1973 Adelma caravan. Picture: Keryn Stevens
The groundbreaking decision allows owners to claim pro-rata tax deductions on a comprehensive range of expenses – from essential maintenance and insurance to finance costs, accessories, and even depreciation – all without the complex requirements of registering a formal business.
Imagine your caravan, typically fetching around $200 a day when rented, now having its operational costs significantly offset by these deductions.
If your vehicle is available for hire for 50 weeks of the year, you could claim 90 per cent or more of its associated costs against your tax.
This transforms what was once a depreciating leisure item into a powerful, tax-advantaged income stream.
Camplify CEO Justin Hales is expanding the business to roll out depots to take care of the handover from owner to renter. Source: Justin Hales/Instagram
The key requirements are meticulous record-keeping and, naturally, declaring the rental income.
Hales’s vision for Camplify was born from a childhood where his family would pay to borrow his uncle’s caravan, sparking the realisation of the vast, untapped potential in Australia’s under-utilised RV fleet.
Now, Camplify is expanding its network with new depots along the eastern seaboard, further simplifying the rental process for owners.
“The more I investigated, the more I found out that there was lots of these vehicles that just sit there for probably 48 weeks a year, and that there was a better way for owners to be able to turn that into something that was giving them a return,” Hales said.
A landmark ruling by the Australian Taxation Office in 2018 now allows caravan and motorhome owners to claim tax deductions.
The timing of the expansion is particularly pertinent.
With international travel becoming increasingly fraught and expensive due to global instability and soaring jet fuel prices, domestic holidays are experiencing a significant resurgence.
Hales anticipates a surge in demand for local getaways, positioning caravan rentals as a “very safe, easy, domestic holiday” alternative for Australian families.
While rising petrol prices are undoubtedly a concern for some travellers, they also present a unique incentive for caravan owners.
Those choosing to stay closer to home can now monetise their vehicles, turning a potential liability into a profitable venture.
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