• The sharing economy and tax

    If you are involved in the sharing economy, you need to consider:

    • if you are carrying on an enterprise            
      • if you need an ABN
      • if you need to register for GST and lodge activity statements
    • if the price of the goods or services you provide includes GST
    • if and when you need to provide tax invoices for your sales
    • if you need to declare your income in your income tax return
    • what GST credits and income tax deductions you can claim for your expenses related to earning your income
    • how all your sharing economy activities added together impact your GST and income tax obligations.

    If you carry on an enterprise of providing ride-sourcing services, under the GST law you need an ABN, you need to be registered for GST, and you need to account for GST on the full amount of every fare regardless of how much you earn. You can also claim the business proportion of your input tax credits. The GST registration threshold does not apply to ride-sourcing services. We also consider that you are running a small business as a sole trader, so you need to declare all the income earned from providing ride-sourcing services and you can claim the expenses related to providing the services.

    If you are selling goods or performing a service as a spare-time activity or pastime you pursue for pleasure or recreation, then you may just be partaking in a hobby which does not have tax or reporting obligations.

    There are different tax obligations depending on what goods or services you are providing. Common sharing economy services include:

    See also:

      Last modified: 07 Apr 2017QC 45171