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Actual cost method for boarders and home-stay students

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Who can use it

Anyone can use the actual cost method.

You must use it if you have 5 or more boarders or home-stay students at any time during the income year.

How it works

To use the actual cost method you need to:

  • keep full records of your actual income
  • keep full records of your expenses
  • complete an IR3 annual tax return to return income and claim actual expenditure incurred.