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April 10, 2016

Are women who ‘want it all’ too ambitious?

And on the flip side, is this very quality holding us back in the workplace? Because last time we checked women were great at multi-tasking.

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WE’RE talking about Anne Slaughter’s 2012 Atlantic piece, Why Women Still Can’t Have It All (though the question was asked long before Slaughter’s bone jarring piece hit the dinner party circuit). The effects of Slaughter’s piece are still felt whenever a woman is asked how she manages both a career and family. Or perhaps she only has a career and is a subject of pity. Or maybe she’s “Leaning in”, or opting out, or declares herself to be a hashtag #girlboss.

The generally agreed-upon party line now hovers around ‘you can’t have it all, or at least not at the same time’. We tired of the so-called ‘mummy wars’ and the why you can or can’t have-it-all-isms. Yet whenever a woman says something definitive or tries to have it all and comes up short, we’re back on that can you/can’t you train again. Like when Pepsi CEO Indra Nooyi said that no, women can’t have it all at an ideas festival in Aspen earlier in July this year,

“I don’t think women can have it all. I just don’t think so. We pretend we have it all. We pretend we can have it all. My husband and I have been married for 34 years. And we have two daughters. And every day you have to make a decision about whether you are going to be a wife or a mother, in fact many times during the day you have to make those decisions. And you have to co-opt a lot of people to help you. We co-opted our families to help us. We plan our lives meticulously so we can be decent parents. But if you ask our daughters, I’m not sure they will say that I’ve been a good mom. I’m not sure. And I try all kinds of coping mechanisms,” Nooyi said, with impressive candour.

And just when we thought there might be a moratorium on the topic, it’s popped up again with new research from the Harvard Business Review (HBR). Though this time it’s telling a slightly different story – and it’s worth taking note.

Much has been made of the study because it questions the reasons why women might not meet the same lofty career ambitions as men. There’s that pesky baby question, and the knotty old stereotype of women as the nurturers, the flexi-time seekers, the school lunch makers.

Another recent study of gifted students found that men and women value success differently. The rather more interesting correlation unearthed in that study, however, lies in the way both genders think about their families.

As the study notes, “[The] notable consensus from the study participants was how their feelings of success were tied to the fulfilment they got from family.”

This ties in with the HBR research. The study surveyed 25, 000 MBA graduates from the Harvard Business School over three generations. While they found the usual sore points of women not attaining the same kinds of success as men, they found no link with women taking time out from their careers for their families.

“Women were more likely than men to have made such decisions,” [surrounding child rearing] the authors of the study wrote, “but again, none of these factors explained the gender gap in senior management. In fact, both men and women in top management teams were typically more likely than those lower down in the hierarchy to have made career decisions to accommodate family responsibilities.”

So if both men and women are trying to have it all, why do only women get pilloried for it? Is it because of conditioning, or cultural values, or perhaps because it’s easier that way?

As Lisa Miller wrote in The Cut, “Why is it that we, as a culture, have been so quick to latch on to the narrative that women are failing to achieve true equality because they essentially take themselves out of the running for the top jobs? “

Women are blamed for trying – and failing – to have it all because it’s an easy trope to believe. Especially when thinking otherwise involves changing the way we think about corporate culture, and opportunities for women and things like (whispers) quotas of women on boards and senior management.

Facebook CEO Sheryl Sandberg has many of us leaning into our careers so far we’re practically cross-eyed, but as the authors of the study noted, it’s time for companies to lean in too.

“Companies need to provide adequate entry points to full-time work for women who have, for instance, recently been on a part-time schedule or taken a career break,” they wrote.

“Our results make equally clear that companies need to move beyond regarding flextime and other “family-friendly” policies as sufficient for retaining and developing high-potential women. Women are leaning in … Women want more meaningful work, more challenging assignments, and more opportunities for career growth.”

That also doesn’t mean that women – and men – shouldn’t ever stop trying to “have it all” but maybe that term should finally be put to rest (please). It’s not about having it all, it’s about having enough of the other things.

As one of Australia’s most successful businesswomen, the outgoing Westpac CEO Gail Kelly said in a speech before her departure, one of her most important pieces of advice that she give to people is to live a whole life.

“You need to make sure you live a whole life, which means be really clear on the priorities in your life and invest in them all the way,” she said.

A whole life will always mean different things for different people. As the wonderful Amy Poehler noted in her memoir Yes Please, a worthy mantra to live by is “good for her, not for me.” Of course, that goes for the men too.

They’re fighting words.

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April 10, 2016

5 tricky interview questions and how to successfully answer them

Have you ever walked out of a job interview wondering if you answered the questions correctly? Here's how to impress.

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1. Can you tell me about yourself?

This question can stump interviewees if they don’t know how much or little to tell. It’s best to keep your answer to a minute or two at most as this is often asked at the start of an interview as a rapport-building question.

Narelle Hess, organisational psychologist at Challenge Consulting, says you should briefly outline your career to date. “The key to remember is that this is a job interview so the information provided should be job-relevant,” Hess says. “Give a short summary of your most recent experience, key skills, and any relevant interests — be succinct and don’t tell your whole life story.”

2. What are your weaknesses?

Employers ask this to understand how you manage your weaknesses so they don’t impact your work performance.

Melissa Johnston, career consultant at Suzie Plush Consulting, says people who don’t prepare for this question before the interview struggle with answering it in the right way. “Turn one of your weaknesses into a positive by wording it appropriately,” Johnston says.

For example, if you say that your weakness is that you are a perfectionist, then you should be prepared to explain how you overcame it by developing your organisational skills in past roles to ensure you prioritised and met competing deadlines.

3. Where do you see yourself in five/ten years time?

No one expects you to know exactly what you will be doing five or ten years from now. But if you can show how the role you are applying for fits in with your general long-term career plan, it will signal to employers you are motivated and capable of personal growth.

Start off by explaining why the job will help you develop your desired skills. Research the company’s organisational structure so you can say what new responsibilities you may wish to take on in the future.

If employers can see that you want to succeed in this role as part of your long-term plan, they will be more likely to decide you will perform well in the job.

4. Can you tell me about a time when you had to make an unpopular decision?

This is a behavioural-based question that is designed to predict your future behaviour in the workplace, says Johnston. It is best to prepare for behavioural-based questions by coming with examples that show when you have successfully solved problems.

Look at the position description and the key competencies required for the job, as these are usually where behavioural-based questions are drawn from.

5. Have you ever not got on with a manager or colleague? Why?

Here employers want to know how you manage challenging situations.

To demonstrate that you can be proactive in resolving conflict, give an example of when you were faced with a challenging person at work and go through the steps you took to improve the relationship.

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April 10, 2016

Women get more help with their small business

Some assistance, please! Are women getting more financial help than men with their aspiring business dreams?

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THE internet has opened up a world of opportunity for women starting up their own businesses. There are so many resources online to help specifically women with support, education and resources to start up a business and get it going. But what about helping young men with their aspiring business dreams?*

Several financial institutions — including major banks — have specialised websites focusing on women in business. For instance, Westpac claims to be “the only Australian bank with a unit exclusively dedicated to supporting women” dubbed the Women’s Markets Team, while the Commonwealth Bank and ANZ offer similar resources for women on financial products such as business loans and business credit cards.

And the list is endless when you do a search on Bing on “women business” with blog sites and online communities spruiking everything from recommended books to read to clever marketing tips. But when the search is on the other side with “men business”, the first page lists websites about men’s business attire with shopping sites for suits and “how to dress business casual”.

There’s no denying that there is still an inequality in business with statistics showing that men earn more than women, but both genders struggle through the first few years — and sometimes longer — of starting up a small business and both women and men could find shared supportive financial resources equally appealing.

There are no statistics in Australia that collect data on the number of small- to medium-sized businesses that fail and identify the gender of the owner, and it would be interesting to see if there was a great disparity between men and women.

It’s wonderful that there is so much help out there for women who want to start or grow their own business but it does seem that women are getting more attention for business help than men by organisations and financial institutions.

If there are more men in Australia who are successful with business than women, wouldn’t it make sense for women to have greater access to the businessmen of Australia and learn from their achievements?

Woolworths chairman James Strong was quoted in the Sydney Morning Herald in April pleading for business leaders to mentor women towards senior roles, due to the unacceptably low proportion of women on company boards. Following criticism of Strong’s remarks, there is logic behind this idea if the majority of businesses in Australia are led by men.

While we sit and wait for the glass ceiling to smash once and for all, both men and women can embrace the internet and educate themselves on clever business strategies. Whether you are a woman or a man, you are a few clicks away from finding hints and tips on business planning, to comparing financial products online to save your business money and get the right start it needs.

Michelle Hutchison is Consumer Advocate at RateCity.

The above information is general only and does not take into account your objectives, financial situation or needs.

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April 10, 2016

Discrimination is rife for working mums

Half of Australia's working mothers are punished for parenthood but statistics reveal many women let the discrimination slide.

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OF the one in two women who experience unfair treatment around maternity, the Australian Human Rights Commission found 75 per cent said they took action.

However, only eight per cent of the women complained within their organisation and 10 per cent took it to a government agency.

In contrast, almost a third chose to avoid confrontation by looking for another job or resigning instead.

“Psychologically, you’ve only got a certain amount of energy. You want to direct it to your baby, instead of trying to go to war with your employer but I think there’s a variety of reasons”, sex discrimination officer, Elizabeth Broderick told The Weekly.

“The major part of it [for victims] is that they don’t want to be labelled as ‘that woman’ – the troublemaker,” Broderick said.

The results revealed that women in smaller businesses and communities were less likely to speak out.

Women often think the discrimination they face isn’t severe enough to formally complain, Broderick said. More than 60 per cent confide in friends and family instead.

“[These victims] don’t actually understand that it’s unlawful. They often think ‘Oh, it wasn’t serious enough anyway’,” she told The Weekly.

The majority of female victims experienced discrimination upon returning to work, with 35 per cent reporting negative comments about breastfeeding.

Women, while victims, were also the biggest offenders.

“One of the most depressing things for me in doing this review, has been that a lot of the discriminatory attitude has come from other women”, Broderick said.

“Some of the worst discrimination came from female managers discriminating against other females”.

Broderick said the blame can’t lay on the individual, but the organisation.

“There needs to be a zero tolerance of discriminatory behaviour applied towards women in the workplace and they need to be assured they won’t be victimised for speaking out.”

The statistics will start to decline when this occurs, Broderick said.

“In most organisations, there’s a way to go before we get to that place.”

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April 10, 2016

Are women failing in business?

With half of start-up businesses failing in the first few years, women are falling head-first into financial hardship before they even get a chance to come up for air.

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WHY is it that women make up only two per cent of the top jobs in ASX 200 companies? While many could argue women lose important career-progression time while conceiving and raising children, their lack of representation in the top corporate roles is damning if we consider that more women start their own businesses than men.

But it’s well known that half of start-up businesses fail in the first few years, so are all of these women falling head-first into financial hardship before they get a chance to come up for air?

Melissa Widner, chairwoman of female entrepreneur support group Heads Over Heels, told the Sydney Morning Herald that the problem for women in the business world is that they lack the support network that men are born with.

“Running a cafe or a consulting business is one thing, but businesses that require scale need access to deep networks and strategic relationships and access to funding, and often women lack those networks,” she said.

If you’re a woman in business and are struggling for funding, there are ways to get solid financial advice and support for the kind of funding that could take your business to the next level.

For instance, many financial institutions, particularly the major banks, have set up small business support programs and some are targeting women such as Commonwealth Bank’s Women in Focus program. CBA also offers business coaching workshops and events.

Westpac has a women’s markets department, and claims to be the only bank with a unit dedicated to supporting women. The service offered includes seminars, events and an online forum.

These types of programs give women in business direct access to successful entrepreneurs as well as financial advice from the banks.

Once you know what type of finance you need for your business (such as business credit cards types of loans), don’t forget to compare deals online so you are getting the best savings possible. Because, after all, the better the funding deal you can find, the higher investment potential and success rate you will have for your business.

Michelle Hutchison is a consumer advocate at RateCity. RateCity is a privately owned company in partnership with ninemsn, publisher of the Australian Women’s Weekly website. The above information is general only and does not take into account your objectives, financial situation or needs.

Your say: Do you have any advice for women in business? Email us on [email protected]

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April 10, 2016

Husbands hinder women’s careers, Harvard study finds

While children are often blamed for females falling behind in the boardroom a new Harvard study suggests it's actually husbands who are holding women back.

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It is wondrous to think in this day and age that the debate about why more women aren’t climbing the corporate ladder at the same rate as men still rages on. And while children are often blamed for females falling behind in the boardroom a new Harvard study suggests it’s actually husbands who are holding women back.

In a bid to understand why women still can’t have it all researchers at the Harvard Business School studied more than 25, 000 of their graduates aged 26 to 67, to learn what the alumni had to say about work and family and how their experiences, attitudes, and decisions might shed light on prevailing controversies.

Of the graduates of the top-tier business school currently working full-time, men were 16 per cent more likely to be in senior management. And overall about 60 per cent of men reported feeling more satisfied with their careers across four different measures, including feeling their work is meaningful, being professionally accomplished, having growth opportunities, and feeling their work and personal lives are compatible.

Comparatively only 40-50 per cent of women were similarly satisfied on the same dimensions.

So as Facebook COO Sheryl Sandberg puts, have women “opted out” of the workforce? According to the reports deeper analysis how a couple distribute career and family responsibilities may contribute why women’s progress has stalled.

It has often been assumed that rearing children was a dominant explanation as to why women stymied in their attempts to climb the career ladder but the study states it simply isn’t true that a large proportion of HBS alumnae have “opted out” to care for children.

Of Gen X (ages 32-48) and Baby Boom (49-67) women (who are most likely to have children under 18 living with them today) only 11 per cent indicated they were out of the workforce to care for children full-time. That figure is even lower for women of colour who only recorded 7 per cent.

The study stated 74 per cent of Gen X alumnae are working full-time, as are 52 per cent of Baby Boom alumnae (some of whom, like their male counterparts, have retired or are cutting back on their hours), and they average 52 hours a week.

So if these highly skilled, highly trained women weren’t quitting why aren’t they progressing? The study indicates that imbalanced marital arrangements might be the culprit.

It could have something to do with the fact that more than 70 per cent of Gen X and boomer men say their careers are more important than their wives’. In fact more than half of the male HBS grads that participated in the study believed that once they graduated, they expected their career to come before their partners’ career but when the female alumnus were asked the same question the vast majority stated that they had expected they would have egalitarian marriages, in which both spouses’ careers were taken equally seriously.

Also eighty-six per cent of Gen X and boomer men said their wives take primary responsibility for child care, and the females agreed with 65 per cent of Gen X women and 72 per cent of boomer women—all HBS grads and most of whom work—say they’re the ones who do most of the child care in their relationships.

So is the key to filling the gaping hole of women in top jobs actually changing men’s attitudes about the importance of their partners role in the workforce? If so, there is hope.

The study’s authors note that male millennial HBS grads aged 26-31 are a little more liberated in their ideas of gender roles than their older peers, with more than one third of Gen-Y men expect an “equal share,” – but this means two thirds don’t.

Whereas three quarters of Gen-Y women grads presume their careers to hold equal importance as their partners’ careers, and just 42 per cent expect to take on the majority of parenting responsibilities.

“In the end, we found not just achievement and satisfaction gaps between men and women, but a real gap between what women expect as they look ahead to their careers and where they ultimately land,” wrote the study’s authors.

“The men and women who graduate from HBS set out with much in common—MBAs, high ambitions, and preparation for leadership. Perhaps it’s time for more-candid conversations—at home, at work, and on campus—about how and why their paths unfold so differently.”

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April 10, 2016

7 things the parents of successful kids have in common

According to scientific research, parents of successful kids have these 7 things in common.

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Every parent wants their kids to be successful but psychological research suggests there are some key parenting characteristics that could predict success for offspring.

According to the scientists, much of a child’s success comes down to the parents.

They teach their kids social skills

Career success could be predicted as early as kindy.

A 20-year-study from Pennsylvania State University and Duke University tracked more than 700 children from across the US between kindergarten and age 25 and found a significant link between their social skills as kindergartners and their success as adults two decades later.

The researchers found socially competent children who could cooperate with their peers without prompting, be helpful to others and were compassionate problem solvers were far more likely to earn a college degree and have a full-time job by age 25 than those who struggled socially.

They also studied participants’ association with crime, drug abuse, public assistance, and mental health issues.

“This study shows that helping children develop social and emotional skills is one of the most important things we can do to prepare them for a healthy future,” said Kristin Schubert, program director at the Robert Wood Johnson Foundation, which funded the research, in a release. “From an early age, these skills can determine whether a child goes to college or prison, and whether they end up employed or addicted.”

They expect more

Expectations parents set for their children have a huge effect on execution.

University of California, Los Angeles professor Neal Halfon and his colleagues studied data from a national survey of 6,600 children born in 2001 and found parents who saw college in their child’s future managed to steer their child towards that goal.

The mothers work

Okay, don’t shoot the messenger but according to research out of Harvard Business School which tracked 50,000 adults in 24 developed countries, there are significant benefits for children growing up with mothers who work outside the home – specifically girls.

According to a paper by Professor of Business Administration at Harvard Business School, Kathleen McGinn and her team “women whose mums worked outside the home are more likely to have jobs themselves, are more likely to hold supervisory responsibility at those jobs, and earn higher wages than women whose mothers stayed home full time.”

They come from sturdy socioeconomic backgrounds

According to research the gap between rich and poor is getting bigger.

Stanford University researcher Sean Reardon says the achievement gap between high and low-income families ‘is roughly 30 to 40 per cent larger among children born in 2001 than among those born 25 years earlier.’

They spent more time studying themselves

A 2014 study lead by University of Michigan psychologist Sandra Tang tracked over 14,000 children from 1998 to 2007 and found that mothers who finished high school or university were more likely to raise kids that did the same.

They think maths is a basic skill to learn early on

Apparently learning maths early can turn into a massive advantage later on in life.

A study of 35,000 preschoolers across the US, Canada, and England found that found that a knowledge of numbers, number order, and other rudimentary maths concepts can not only predict future maths achievement as well as reading achievement.

They appreciate effort or avoiding failure

Well, Aussie parents we certainly have this one covered because we love somebody just having a go.

Author and Stanford University psychologist Carol Dweck asserts that people view success in one of two ways and Brain Picking’s has summed them up like this:

A ‘fixed mindset’ assumes that our character, intelligence, and creative ability are static givens which we can’t change in any meaningful way, and success is the affirmation of that inherent intelligence, an assessment of how those givens measure up against an equally fixed standard; striving for success and avoiding failure at all costs become a way of maintaining the sense of being smart or skilled.

A ‘growth mindset,’ on the other hand, thrives on challenge and sees failure not as evidence of un-intelligence but as a heartening springboard for growth and for stretching our existing abilities.

In summary if kids are told they did well on an exam because they are inherently smart the will cultivate a “fixed” mindset but if they are told they can succeed due to effort that teaches a “growth” mindset.

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April 10, 2016

New research finds CEOs with daughters are nicer to employees

The research found that CEOs with first born daughters are the nicest and more conscious of employee needs.

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When you’re getting grilled by your boss, or being turned down for a hard-earned promotion or raise, it can be a tempting solution to blame their personality, their temperament or even their background.

But new research suggests a clearer decider between a ‘nice boss’ and a ‘mean boss’ is something else entirely.

The research, completed by professors at the University of Miami and the China Europe International Business School, reveals that bosses who have daughters are more likely to be more sympathetic and just plain ‘nicer’.

The survey, completed over more than 400 CEOs of US companies (with a total of more than 1,000 children between them), shows that CEOs who have daughters are more socially conscious and are more likely to be receptive to employee issues such as flexible work hours, maternity and paternity leave, providing childcare, profit sharing, pay rises and even diversity in employment.

“Having a daughter seems to make the top executives of publicly traded companies in the U.S. a bit softer, specifically in context of social responsibility,” said co-author Henrik Cronqvist, a professor at University of Miami’s business school, “They seem to care more about others than just shareholders. Having a daughter seems to push the executives to care more about other stakeholders.”

This effect on corporate social responsibility (CSR), called the ‘Daughter Effect’, is amplified even further when the daughter in the first born of the family, and is thought to be caused by the fact that women “attach more weight to the well-being of others” than men.

Earlier research done into US congressmen and judges revealed that the two professions tend to vote and judge more liberally – in a social sense – if they have daughters, especially in issues relating to women’s rights and reproductive rights.

So the next time you’re surfing for a new job, there might be a new factor to consider!

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April 10, 2016

It’s a Wiggly wedding! Emma and Lachy have tied the knot

A huge congratulations are in order for The Wiggles stars Lachlan “Lachy” Gillespie and Emma Watkins, who have tied the knot in a stunning country-side ceremony.

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Over the weekend, the newlyweds confirmed their wonderful wedding news through a statement.

“Yesterday, Saturday April 9th, they tied the knot with a late afternoon wedding ceremony at Hopewood House in beautiful Bowral, in NSW’s Southern Highlands,” their rep said.

Simply stunning! Emma wore a vintage princess gown while Lachy looked dapper in a classic suit.

The musical stars said “I do” in front of 200 close friends and family.

Emma, 26, looked radiant in an elegant ivory vintage-meets contemporary gown by Australian designer Suzanne Harward. The Wiggles beauty completed the look with a diamond headpiece by milliner Viktoria Novak.

Lachy, 29, gave a node to his Scottish heritage by donning a tartan sash across his suit. The purple frontman of the children’s group included his fellow band members on the special day, with fellow red Wiggle Simon Pryce one of his six groomsmen.

Blue Wiggle Anthony Field gave his lungs a work-out joining the bagpipers, who were made up of friends from Lachy’s army days. The group provided the soundtrack as Emma walked down the aisle, and again when the bridal party left the ceremony.

In a beautiful touch, the duo’s wedding rings have Emma’s trademark Wiggles’ bow engraved on them and each are set with nine rubies, to mark their wedding date. Their wedding cake was also adorned with the famous bow.

Watch Emma and Lachy talk about their romance. Post continues after the video!

It’s a fairytale ending for the band’s resident love birds. (L-R) Anthony, Emma, Lachy and Simon smile for a team photo.

Speaking of his breathtaking bride, Lachy said: “Seeing Emma was the most magical moment of my life. Everything else just seemed to melt away.”

While Emma, the first female Wiggle of the supergroup, summed up the incredible day with these touching words: “Lachy. Love. Laughter. The best day of my life.”

At the reception, guests were treated to an array of performances including a poem, which was written special guest Ben Elton and read out by Lachy.

Following a delicious dinner, guests danced to live music from The John Field 10 piece band. Later in the evening, original red Wiggle Murray Cook sung a few tunes as did the groom.

All members past and present of the Wiggles were in attendance, except for founding member Greg Page who sadly had another commitment.

Last May, just two months after going public with their romance, the children’s entertainers confirmed their engagement.

Speaking to the Telegraph’s Confidential about the proposal, the couple revealed it took place by Lavender Bay on Sydney Harbour with Lachy reading a sweet poem before getting down on one knee.

But it didn’t all go to plan! “We thought we had picked a quiet location… I was quite emotional, I was crying as I read the poem and just as I got down on one knee a lady walked past with her little baby… she let out a massive gasp,” Lachy explained.

Last May, the children’s entertainers revealed their engagement.

Shortly after they let the world know about their wedding plans, Emma took to Instagram to express her utter joy. “The most beautiful thing… Lachy Gillespie (Lachy Wiggle) asked me to marry him! YES of course xx,” she wrote.

Despite being together for two years, the duo decided to keep their romance under wraps in a bid to prevent putting the supergroup in jeopardy. However after realising they were in it for the long haul, they finally went public with their love.

And we’re so happy they did! Congratulations to the newlyweds, wishing you many years of happiness.

Watch Emma and Lachy talk about their romance in the player below.

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April 9, 2016

How you can earn an income from your unused rooms

Get The Weekly’s guide to unlocking some extra cash by utilising what you already have.

CelebritySusan Hely

If you have a spare room or two, granny flat or studio, why not put it to work. Perhaps your home feels empty after the kids have moved out or there’s a room full of stuff you no longer need. The spare room is a cashbox and it is a way to rev up your savings or pay off your mortgage faster.

It has never been easier to unlock an income from your unused rooms. The internet has helped foster a new vibrant economy, called the sharing economy.

Who would have thought that the idea of renting a room to a perfect stranger would catch on? Yet it certainly has. Increasingly I come across micro entrepreneurs who are renting rooms to students or backpackers or middle-class, baby boomer travellers. Or they have moved out of their apartments or home and in with friends or family, listing them on short-term accommodation websites such as stayz.com.au. The trend is spreading and I am on the verge of giving it a go.

All around the world people are renting out space. Take Airbnb, which lets travellers book beds, rooms, houses, boats, treehouses and even castles on a nightly basis. The service lists around 500,000 properties, operated by 350,000 hosts in 192 countries and 34,000 cities.

Sydneysiders earned $214 million from Airbnb guests over 12 months until July 2013, according to a study by BIS Shrapnel for Airbnb. Some 46 per cent of Airbnb hosts earn at or below Sydney’s median household income, 48 per cent of Airbnb hosts say Airbnb helped them stay in their homes and 60 per cent of hosts use Airbnb income to pay their rent or mortgage. BIS Shrapnel found that while the majority of Airbnb Sydney hosts are employed, many struggle to make ends meet.

While people rent out space primarily for income, they also like the interaction with travellers. The world comes to you when you rent out your space.

Brian Chesky, a co-founder of Airbnb, recently told The New York Times, “There is a whole generation of people that don’t want everything mass produced. They want things that are unique and personal.”

There is a huge incentive to provide a welcoming experience. Travellers staying in short-term rental accommodation can be brutal in their online rating and feedback if they don’t enjoy the accommodation and their stay.

Foreign students want an authentic experience, too. Many prefer to stay with a family – it helps them learn English faster and they want to interact with locals. “We are always on the lookout for host families,” explains Ross Sands, NavitasEnglish ELICOS director, student services and experience.

There were 526,932 full fee-paying international students on student visas as at the end of 2013, according to the Australian government. Some 124,603 were learning English.

Navitas placed 1900 homestays in 2013. It visits the family and inspects the property. Families must pass a security check and can be single people, families with kids or retirees. Navitas matches up the hosts with the students’ requests. Some hosts specify gender while some students request no pets or small kids. The maximum rooms you can rent is three rooms in a house.

What do you need? All you need is a spare room with a bed, wardrobe, desk and lamp plus provide breakfast and dinners as well as lunches on the weekend. “As much as possible we like the student to be with the family,” says Sands. Families are expected to show them around and explain public transport.

What is the cost to you? Student homestays typically don’t charge any fees. Airbnb charges around 12 per cent commission (3 per cent from the host and 6 to 12 per cent from the traveller). It takes photos of your space, runs the bookings and website. It provides insurance cover of $1 million. The money is paid within 24 hours of your guest checking in.

TAX ISSUES

If you are renting out a room, the rental income will usually be taxable. You should be able to claim a tax deduction for costs such as insurance and depreciation of furniture and fittings in the rooms available for rental, as well as making a claim for part of your utilities, rates and water bills.

The family home is generally exempt from capital gains tax (CGT) but if you rent out a room, part of any profit on the sale of the property may be liable to CGT, payable on a pro-rata basis for the percentage of floor space rented out.

A good tip is to get the property valued before you start to rent out the room, since CGT will only be due for the period the room is used to produce income. By comparison, letting a room for student accommodation can be non-taxable, provided you are only covering your costs rather than making a profit. These arrangements are usually made through an educational institution for foreign students, with the amount paid set by the institution to cover food, laundry and other costs.

The Australian Taxation Office (ATO) describes these arrangements as “non-economic rentals’’, but hosts are advised to get some sort of agreement in writing from the ATO to give certainty to their position, since issues can arise where the ATO regards the level of board as excessive.

If you’re letting a room out for B&B, your tax treatment will depend on factors including what you charge, what services you provide, where you advertise and the regularity of income. If the B&B is designed to make a profit, income tax will be payable.

Again, CGT on the sale of the property will be an issue because the residence exemption won’t apply to the part which is rented, but if you are running a commercial venture you may be able to claim small-business CGT concessions.

Commerciality is assessed on such things as regularity of bookings and number of rooms available, so getting professional advice is a good idea.

CHECKLIST

Do you have public liability insurance? You need to cover your liability if you are found to be legally responsible for personal injury or damage to their property.

-Does your council have a policy about short-term rentals?

Does your body corporate allow short-term rentals? Some apartment blocks don’t.
Do the sums. How much will it cost to set up your space for rent? Include utility bills and food.
Organise back-up to help with cleaning, cooking, driving and co-ordinating with the guest on when to pick up the key.
Be prepared for higher maintenance bills when your home is used more intensively.

A version of this article originally appeared in The Australian Women’s Weekly’s How Busy Women Get Rich 2014 issue.

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Celebrity Susan Hely

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