Understanding the sharing economy and tax

Some taxpayers may be earning income through the sharing economy without fully understanding their tax obligations.

The ATO have updated their sharing economy and tax web page to help taxpayers understand what they need to know about:

• Working in the sharing economy
• Income and GST
• How to avoid a tax debt

Please remember that if you are:

• Renting out part or all of your home, you need to:
  • Declare what you earn in their tax return
  • Apportion related expenses as appropriate before claiming deductions
  • Understand it may affect your capital gains tax (CGT) if you sell their home in the future
• Providing ride-sourcing services, you need to:
  • Declare what you earn
  • Apportion related expenses
  • Get an Australian business number and register for GST
  • Pay GST on the full fare
  • Lodge your BAS
  • Provide a tax invoice for fares over $82.50 if asked
• Providing other goods or services, you need to:
  • Declare what you earn
  • Apportion related expenses

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/Understanding-the-sharing-economy-and-tax/