The following helpful information was published July 18, 2018 by Business Victoria:
“Are you one of the many Australians who earn additional income through the sharing economy? If so, you may have tax obligations.
What activities make up the sharing economy?
Common examples of sharing economy activities include:
- ride-sourcing: transporting passengers for a fare
- renting accommodation such as a room, whole house or a unit for a fee
- renting out car parking spaces for a fee
- being paid for completing a job using your skills – for example web design or plumbing
- completing odd jobs, cleaning, errands, or similar
- food or other types of delivery
- being paid for providing goods like meals or homemade items
- renting, hiring or sharing your car, caravan, motor home, or similar
- renting, hiring or sharing other assets or equipment such as tools, musical instruments, sports equipment, etc.
Things to consider
Depending on the type of goods or services that you provide, things you may need to consider include:
- if you are operating as an enterprise
- if you need an ABN
- if you need to register for GST
- if the fee you charge for your goods or services includes GST
- what income you declare in your income tax return
- what GST credits and income tax deductions you can claim for your expenses related to income.
If you rent out your property, even if it’s only part of it, such as a room or car space, you may need to pay capital gains tax (CGT) when you sell.
No matter how much you earn or your reasons for providing goods or services, you need to keep records of income and expenses. This will ensure that your activities are tracked and you meet your tax obligations.”
If you need advice about your specific circumstances please talk to us. Our degree qualified accountants are available to provide advice and complete your tax return via phone, face to face and email. Book via phone, email or contact form today.
More detailed information about the sharing economy can be found https://www.ato.gov.au/General/The-sharing-economy-and-tax/