There are many types of services that you can provide through a digital platform. This type of service is sometimes referred to as the 'gig economy' or 'on-demand'. You'll need to keep records to support deductions you claim for expenses related to earning this income.
Delivering goods
When delivering goods through a platform, how you are engaged will depend on your relationship with the platform and other parties to the arrangement.
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 for other people that relate to home or private aspects of daily life through a digital platform .
Often, this involves providing services in a peer-to-peer arrangement. Even though these 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. You may be engaged in one of the following ways:
- as an employee or independent contractor
- peer to peer
- 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.
For more information, see: