The ATO has reported that some people may not be aware that they have tax obligations when earning income through the sharing economy.

The type of goods or services you provide, and how much you provide, will determine what you need to do for tax.

If you:

  • rent out part or all of a house, such as through Airbnb ir Stayz
    • you need to declare the same income in your income tax return as if you had a rental property
    • any deductions you want to claim need to be apportioned according to how much of the property is being rented out
    • you also need to be aware of any capital gains tax (CGT) obligations if you have sold a property used in the sharing economy.

     

  • provide ride-sourcing services (Uber)
    • you need to keep records of all income earned and declare it in your income tax return, along with any expenses you can claim as deductions.

     

  • provide other goods or services
    • you need to keep records of all income earned as you may have to declare it in your income tax return, along with any expenses you can claim as deductions.

     

If you are carrying on an enterprise providing goods and services through the sharing economy, you will need to get an ABN and register for GST if:

  • your turnover is $75,000 or more per year
  • you are providing ride-sourcing services, regardless of how much you earn.