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  • Income tax and GST in the sharing economy

    Income tax

    The payments you receive through the sharing economy that are assessable income, are subject to income tax.

    This means you:

    • must declare the income in your tax return
    • can claim deductions for associated expenses.

    Assessable income can include:

    • income earned from performing services for a fee, such as ride sourcing, food delivery, tasking or other services arranged through a sharing economy platform
    • earning short-term or long-term rent from a property or part of a property that you own or lease, such as your home, a rental property or a parking space
    • income from sharing other forms of property, such as a motor vehicle or caravan
    • income received from carrying on a business arranged or facilitated through a sharing economy platform.

    You should keep records of income and expenses regardless of how much you earn.

    See also:

    GST

    Under $75,000

    If your turnover is below, or is projected to be below, the GST threshold of $75,000 per year, you are not required to register for GST. However, you can apply for an ABN, for example if you're going to invoice businesses for work you do that is outside of the sharing economy. You can also choose to register for GST if you want.

    If you have a ride-sourcing enterprise, special rules apply and you must have an ABN and register for GST regardless of your turnover.

    At or over $75,000

    If your turnover is, or is projected to be, $75,000 or more per year, you need to get an ABNExternal Link and register for GST.

    Already registered for GST

    If you're already registered for GST for any reason, and you earn income providing goods or services through the sharing economy, you need to account for GST on those earnings through your existing ABN and GST registration. This includes if it's from:

    • another enterprise
    • other sharing economy sites.

    For example, if you are registered for GST because you have a ride-sourcing enterprise, you also have to account for GST on goods or services you provide through any other enterprises you carry on, such as renting out a car parking space.

    See also:

    GST on service fees or commissions charged by facilitators

    The services provided by a GST registered facilitator are subject to GST when they are provided:

    • wholly from within Australia or wholly through an Australian business carried on here. You can generally claim a GST credit for the GST you pay on service fees or commission if you’re registered for GST (but special GST rules apply if you rent out part or all of your home)
    • wholly or partly from outside Australia. If you haven't provided the facilitator your ABN and a declaration that you are GST registered the facilitator must assume that you’re not registered for GST, and will apply GST. You can’t claim a GST credit for the GST you pay on service fees or commission if you’re not registered for GST.

    See also:

    Last modified: 16 Jan 2018QC 53222