Sharing economy reporting regime
Under the Sharing Economy Reporting Regime, Electronic Distribution Platform operators must report certain transactions.
On this page
When SERR starts
Sharing Economy Reporting Regime (SERR) begins for transactions made from 1 July 2023 for supplying:
Reporting begins for all other reportable transactions made from 1 July 2024.
Why we collect this information
This reporting regime will allow us to:
- increase community confidence in the integrity of the tax and super systems
- identify and educate participants who fail to meet their registration or lodgment obligations and help them comply
- gain insights from the data to help us develop and implement engagement strategies to improve voluntary compliance – including educational or compliance activities
- obtain intelligence to increase our understanding of behaviours and compliance profiles of participants in the sharing economy, such as ride sourcing or service providers.
Platforms that must report under SERR
If you operate an Electronic Distribution Platform (EDP) you must report transactions made through your platform.
Under SERR, an EDP is a service that:
- allows sellers to make supplies available to buyers (for example, guests booking accommodation or passengers booking car rides)
- is delivered via electronic communication.
A seller is an entity that makes supplies via an EDP. A buyer is the end user of the supplies.
An EDP can be, but is not limited to:
- a website
- internet portal
- gateway
- application
- online store
- marketplace.
Platforms are not considered an EDP if they only provide:
- carriage services that transmit electronic communications
- access to payment systems or payment processing services
- advertising that makes customers aware of products and links them to a merchant's website.
Example 1: ride-sourcing provider
Saferider is a third-party ride sourcing platform that allows passengers to request rides from drivers.
Trisha wants to go to the CBD. She opens the Saferider app and types in her desired destination.
The app connects her with James, a Saferider driver in her area and provides her with the price for the service.
Trisha accepts the ride with James and the transaction is processed through the platform.
Saferider is an EDP as the service allows sellers (the drivers) to supply ride-sourcing services to end-users (the passengers) via a smartphone application.
End of exampleExample 2: service that does not allow entities to make supplies available to end-users
Michelle wants a plumber to fix her kitchen sink.
She uses a website called Fix It where she can request a service and plumbers can bid for the job directly with Michelle.
Jim, a plumber contacts Michelle and offers his service, which Michelle accepts.
Fix It is not operating an EDP as its website only allows individuals to find a service. The transactions are not accepted through the website between the buyer and seller.
End of example
Example 3: payment platform services
Pay Ltd’s sole activity is operating an online payment process service. In exchange for a fee, it supplies merchants with software and services that permit the use of credit and debit card payments by customers on the website of the merchants.
Pay Ltd is not involved with the supplies made by the merchants other than through processing payments and providing access to its payments system.
Pay Ltd is not an EDP operator. Its services solely consists of processing payments and providing access to a payment system and so it is not operating an EDP.
End of exampleTransactions reportable under SERR
EDP operators must report transactions:
- when a seller uses their platform to make a supply that is connected with Australia (including its external territories)
- that are available to end users and receive payment or other consideration for the supply.
This includes ride sourcing, short-term accommodation, hiring (not selling) of assets and services made available through the platform. Assets hired could include personal assets, storage or business space. Services could include food delivery, professional, performing tasks and activities.
EDP operators do not need to report:
- transactions where an amount of the payment must be withheld under Division 12 in Schedule 1 to the Tax Administration Act 1953, for example, for salary and wages
- transactions where the operator and seller are members of the same tax consolidated or multiple entry consolidated group
- transactions where only the title or ownership of goods or real property is exchanged
- transactions involving financial supplies, such as financial securities trading
- where exemptions apply as provided by us.
Example 4: connected with Australia (including the external territories)
Short Stay Marketplace Co is an EDP through which entities can make supplies of short-term accommodation.
Using this platform, Ezra contracts with Nina to book a 3-night stay at a property owned by Nina in Melbourne for $450.
Short Stay Marketplace Co must report this transaction. It involves a supply that is made through the platform that is both for payment and connected with Australia.
The supply of the short-term accommodation is connected with Australia because the property is located in Australia.
If Nina owned property in Italy and Ezra booked a stay there, Short Stay Marketplace Co would not need to report that transaction as the supply of the accommodation would not be connected to Australia.
End of exampleExample 5: sale or lease of goods
Builders R Us operates an EDP through which entities can sell or lease building equipment within Australia. Using this platform, Mike purchases a concrete mixer from Ted's Cements for $600.
Builders R Us does not need to report this transaction as it involves a supply where only the title or ownership of goods is exchanged.
Using this same platform, Jay leases a bobcat for one week from KLT Bobcats Pty Ltd for $800.
Builders R Us must report this transaction as it involves a supply for payment for a short-term lease of goods and does not involve the exchange of ownership of the goods.
End of exampleHow to report under SERR
EDP operators must prepare their report in the approved form. This is a validly generated XML file. A report is only considered lodged in the approved form if the form is complete.
EDP operators that have an ABN need to lodge their report through Online services for business.
Overseas platform operators without an ABN need to lodge via Online Services for non-residentsExternal Link.
When to report under SERR
EDP operators will need to lodge their report to us at the end of each financial year. The lodgment date is 31 days after the end of each financial year.
We recently consulted on the draft Legislative Instrument and draft Explanatory Statement to change the reporting period to every 6 months. The proposed reporting periods are:
- 1 July to 31 December, and
- 1 January to 30 June each year.
The consultation closed 3 February 2023 and we are considering the responses.
What details to report under SERR
EDP operators should include information in their reports as specified in the approved form. EDP operators need to ensure the information reported is accurate. This includes taking reasonable steps to ensure the information provided by sellers is correct and systems are in place to collect the information needed for the report.
Key fields include:
- details identifying the EDP operator providing the report, including its
- Australian business number (ABN) or Australian Reference Number (ARN)
- Tax identification number (TIN) if the operator is registered outside of Australia
- business or trading name
- business and postal address
- contact name, telephone number and email address.
- details identifying the entity (seller) who provided the supply to which the transaction relates including the entity’s
- ABN and business / trading name (where applicable)
- first, middle and surname/family name (for individuals)
- date of birth (for individuals)
- residential or business address
- email address and telephone numbers
- bank account details.
- financial information aggregated on a quarterly basis for each entity (seller) providing a supply subject to reporting in the reporting period. Report amounts in Australian dollars. Details include
- sharing economy industry type
- number of transactions through the EDP in that quarter
- total gross income from transactions made through the platform in that quarter (GST inclusive)
- GST amounts included in total gross income in that quarter
- total fees and commissions withheld in that quarter (GST inclusive)
- GST amounts included in fees and commissions in that quarter
- Quarterly periods are from
- 1 January to 31 March
- 1 April to 30 June
- 1 July to 30 September
- 1 October to 31 December.
In addition, EDP operators that facilitate the supply of short-term accommodation must also provide, for those supplies:
- listed property name
- listed property address
- number of nights booked.
Penalties for reporting incorrectly under SERR
EDP operators must have appropriate systems and procedures in place to ensure the information they include in their reports to us is correct.
EDPs must take reasonable care to:
- collect the required information from sellers
- ensure seller information is recorded correctly and updated as needed
- correct errors when they are identified.
Penalties may apply for late or incorrect information provided.
We will work with you so that you understand your reporting obligations and have access to all the information you need to prepare and lodge your report.
Further information
If you require further information, email sharingeconomyreporting@ato.gov.au.
Under the Sharing Economy Reporting Regime, Electronic Distribution Platform operators must report certain transactions.