Tax and the Sharing Economy
The ATO now requests data from digital platforms in Australia to identify people who earn income through the sharing economy. The ATO describes the sharing economy as activity that connects buyers (users) to sellers (providers) of goods and services through an online platform (app or website).
Sharing Economy also sometimes known as collaborative consumption is the economy serviced around sharing/renting often facilitated by the internet.
Sharing economy activities include:
- ride-sourcing (also known as ride-sharing) – transporting passengers for a fare
- renting out all or part of a home for a short-term basis
- sharing assets, such as
- personal assets, like boats, cars or caravans
- storage or business spaces, like car parking spaces or offices
- personal belongings, like tools or sports equipment
- providing services, such as
- delivering goods, like food or parcels
- performing tasks and activities for other people, like odd jobs, cleaning or running errands
Starting from 1st of July 2023, sharing economy platforms will be required to report transactional information to the ATO.
Subsequently if you’re earning income through the sharing economy platform be aware of your tax obligations and ensure that income is declared and cross correlated with what is provided to by the sharing economy platforms.
Additionally if you’re providing ride-sourcing services, you’ll need to get an ABN and register for GST.
If you have any questions or queries related to income and your tax obligations please don’t hesitate to get in touch with us.
