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The ATO has reminded people who earn income in the shareneconomy that they have tax obligations. The type of goods or services you provide,nand how much you provide, will determine what you need to do for tax. Popular sharing economy servicesninclude:
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• nproviding “ride-sourcing” services for a fare;
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• nrenting out a room or a whole house or unit on anshort-time basis;
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• nrenting out a car parking space; and
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• nproviding personal services, such as creative ornprofessional services like graphic design and website creation, or doing oddnjobs like deliveries and furniture assembly.
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The ATO notes that you need to get an ABN if you are carryingnon an enterprise providing goods and services through the sharing economy, andnregister for GST if:
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• nyour turnover is $75,000 or more per year; or
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• nyou are providing ride-sourcing services,nregardless of how much you earn from doing so.
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TIP:nNo matter how much you earn or your reasons for providing goods or services, it’sna good idea to maintain records of your income and expenses, so you can keepntrack of your activities and deal with tax obligations when they arise.Taxndeductions may also be available in certain circumstances. Please contact ournoffice for more information.
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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.