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.
There are many types of services that you can provide through a digital platform.
When delivering goods through a platform (for example,UberEats, Menulog, Hungry Panda, Loadshift, or Sherpa), 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.
You may perform tasks and activities through a platform (for example, AirTasker, 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. Even though these activities may be occasional, what you earn is still assessable income and needs to be reported in your tax return.
You may also provide professional services through a platform (for example, 99designs, OneFlare, or Upwork). 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.
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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See alsoIf you're providing services through a digital platform for a fee, this income needs to be reported in your tax return.