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  • Providing services

    If you're providing your time, labour or skills (services) through a digital platform for a fee (sometimes this is referred to as a 'gig' or just 'on-demand'), you need to report this income in your tax return. You can claim deductions for expenses directly related to earning this income and you'll need to keep records to support these claims.

    There are many types of services that you can provide through a digital platform.

    Delivering goods

    When delivering goods through a platform (for example, Eat Now, Hark Hark, Freightlancer, or Sherpa), how you are engaged will depend on the nature of your relationship with the platform and other parties to the arrangement. However, whatever form the engagement takes, what you earn is assessable income and needs to be reported in your tax return.

    Performing tasks and activities

    You may perform tasks and activities through a platform (for example, PKUP, Urban You or Paw Shake) for other people that relate to home or private aspects of daily life.

    Often, this involves providing services in a peer-to-peer arrangement. However, just because the activities may be occasional, what you earn is still assessable income and needs to be reported in your tax return.

    Providing professional services

    You may also provide professional services through a platform (for example, 99designs, OneFlare, or Upwork).You may be engaged in various ways, such as an employee or independent contractor, peer to peer or as a business providing services. However, what you earn is still assessable income and needs to be reported in your tax return.

    What it means for you

    It doesn't matter whether you are an employee, independent contractor, carrying on a business, or none of these. When you provide these services in return for a fee, the income you earn is still assessable and needs to be reported in your tax return – even if it's a one-off payment.

    In addition, if you are carrying on a business, your tax obligations are the same whether you source your work through the sharing economy or through traditional methods, such as tenders, contracts or word-of-mouth.

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    Last modified: 12 Jun 2019QC 59254