Sharing Economy Reporting Regime (SERR) begins for transactions made from 1 July 2023 for supplying:
- taxi travel including ride-sourcing
- short-term accommodation, which we consider to be 90 consecutive days or less.
Reporting begins for all other reportable transactions made from 1 July 2024.
This reporting regime will allow us to:
- increase community confidence in the integrity of the tax and super systems
- identify and educate participants who fail to meet their registration or lodgment obligations and help them comply
- gain insights from the data to help us develop and implement engagement strategies to improve voluntary compliance – including educational or compliance activities
- obtain intelligence to increase our understanding of behaviours and compliance profiles of participants in the sharing economy, such as ride sourcing or service providers.
If you operate an Electronic Distribution Platform (EDP) you must report transactions made through your platform.
Under SERR, an EDP is a service that:
- allows sellers to make supplies available to buyers (for example, guests booking accommodation or passengers booking car rides)
- is delivered via electronic communication.
A seller is an entity that makes supplies via an EDP. A buyer is the end user of the supplies.
An EDP can be, but is not limited to:
- a website
- internet portal
- online store
Platforms are not considered an EDP if they only provide:
- carriage services that transmit electronic communications
- access to payment systems or payment processing services
- advertising that makes customers aware of products and links them to a merchant's website.
Example 1: ride-sourcing provider
Saferider is a third-party ride sourcing platform that allows passengers to request rides from drivers.
Trisha wants to go to the CBD. She opens the Saferider app and types in her desired destination.
The app connects her with James, a Saferider driver in her area and provides her with the price for the service.
Trisha accepts the ride with James and the transaction is processed through the platform.
Saferider is an EDP as the service allows sellers (the drivers) to supply ride-sourcing services to end-users (the passengers) via a smartphone application.End of example
Example 2: service that does not allow entities to make supplies available to end-users
Michelle wants a plumber to fix her kitchen sink.
She uses a website called Fix It where she can request a service and plumbers can bid for the job directly with Michelle.
Jim, a plumber, contacts Michelle and offers his service, which Michelle accepts.
Fix It is not operating an EDP as its website only allows individuals to find a service. The transactions are not accepted through the website between the buyer and seller.End of example
Example 3: payment platform services
Pay Ltd’s sole activity is operating an online payment process service. In exchange for a fee, it supplies merchants with software and services that permit the use of credit and debit card payments by customers on the website of the merchants.
Pay Ltd is not involved with the supplies made by the merchants other than through processing payments and providing access to its payments system.
Pay Ltd is not an EDP operator as its services solely consist of processing payments and providing access to a payment system.End of example
EDP operators must report transactions:
- when a seller uses their platform to make a supply that is connected with Australia (including its external territories)
- that are available to end users and receive payment or other consideration for the supply.
This includes ride sourcing, short-term accommodation, hiring (not selling) of assets and services made available through the platform. Assets hired could include personal assets, storage or business space. Services could include food delivery, professional, performing tasks and activities.
EDP operators do not need to report:
- transactions where an amount of the payment must be withheld under Division 12 in Schedule 1 to the Tax Administration Act 1953, for example, for salary and wages
- transactions where the operator and seller are members of the same tax consolidated or multiple entry consolidated group
- transactions where only the title or ownership of goods or real property is exchanged
- transactions involving financial supplies, such as financial securities trading
- transactions that were completed prior to commencement of SERR
- where exemptions apply as provided by us.
Example 4: connected with Australia (including the external territories)
Short Stay Marketplace Co is an EDP through which entities can make supplies of short-term accommodation.
Using this platform, Ezra contracts with Nina to book a 3-night stay at a property owned by Nina in Melbourne for $450.
Short Stay Marketplace Co must report this transaction. It involves a supply that is made through the platform that is both for payment and connected with Australia.
The supply of the short-term accommodation is connected with Australia because the property is located in Australia.
If Nina owned property in Italy and Ezra booked a stay there, Short Stay Marketplace Co would not need to report that transaction as the supply of the accommodation would not be connected to Australia.End of example
Example 5: sale or lease of goods
Builders R Us operates an EDP through which entities can sell or lease building equipment within Australia. Using this platform, Mike purchases a concrete mixer from Ted's Cements for $600.
Builders R Us does not need to report this transaction as it involves a supply where only the title or ownership of goods is exchanged.
Using this same platform, Jay leases a bobcat for one week from KLT Bobcats Pty Ltd for $800.
Builders R Us must report this transaction as it involves a supply for payment for a short-term lease of goods and does not involve the exchange of ownership of the goods.End of example
Consultation on Transitional Arrangements and Ongoing Exemptions for short-term accommodation and taxi travel
We have commenced public consultation on draft Legislative Instruments setting out transitional arrangements and ongoing exemptions for short-term accommodation and taxi travel. The draft instruments:
- outline the proposed transitional arrangements for eligible smaller EDPs
- propose making certain ongoing exemptions to provide certainty of reporting obligations.
Information on how to make a submission on the drafts is available in the legislative instruments.
Consultation is open until 12 September 2023.
LI 2023/D15 Draft Explanatory Statement Taxation Administration (Transitional Exemptions for Reporting by Electronic Distribution Platform Operators – Relevant Accommodation and Taxi Travel) Determination 2023
LI 2023/D16 Draft Legislative Instrument Taxation Administration (Reporting Exemptions for Electronic Distribution Platform Operators – Relevant Accommodation and Taxi Travel) Determination 2023
LI 2023/D16 Draft Explanatory Statement Taxation Administration (Reporting Exemptions for Electronic Distribution Platform Operators – Relevant Accommodation and Taxi Travel) Determination 2023
When part of a transaction occurs prior to the start of the first reporting period
The SERR commences on 1 July 2023 for taxi travel (including ride-sourcing) and short-term accommodation. Reporting for all other industries and reportable transactions commences on 1 July 2024.
The supply of taxi travel or short-term accommodation made through an EDP must be reported (unless an exception applies) if:
- the booking, the supply and payment by the operator of the EDP to the supplier all occur on or after 1 July 2023
- the booking is made prior to 1 July 2023, however the supply and payment by the operator of the EDP to the supplier occur on or after 1 July 2023; or
- the booking and the supply occur before 1 July 2023 and payment by the operator of the EDP to the supplier is made on or after 1 July 2023.
A transaction, involving a supply other than for short-term accommodation or taxi travel, will be reportable under the SERR if:
- the booking, the supply and payment by the operator of the EDP to the supplier are all occurring on or after 1 July 2024
- the booking is made prior to 1 July 2024, however the supply and payment by the operator of the EDP to the supplier are made on or after 1 July 2024
- booking and the supply are made before 1 July 2024 and payment by the operator of the EDP to the supplier is made on or after 1 July 2024.
EDP operators must prepare their report in the approved form. This is a validly generated XML file.
A report is only considered lodged in the approved form if the form is complete. Failure to properly complete this form may result in an error and rejection of the report. You will need to ensure any errors are resolved before you can re-lodge.
For more information, see the Software developersExternal Link website.
EDP operators that have an ABN need to lodge their report through Online services for business.
Overseas platform operators without an ABN need to lodge via Online services for non-residentsExternal Link.
We will work with EDP operators and intermediaries to assist with data quality and data reporting.
The reporting periods under SERR are:
- 1 July to 31 December – report must be submitted by 31 January of the following year
- 1 January to 30 June – report must be submitted by 31 July of that year.
Which period to report a transaction in
The period in which you need to report a reportable transaction to the Commissioner depends on when you pay the supplier. This matters for transactions where the booking, supply and payment by the operator of the EDP to the supplier occur over multiple reporting periods. Where this occurs, the operator of an EDP must report the transaction in the period when it pays the supplier.
Example 6: transaction reporting period
On 1 December 2023 the operator of an EDP, ABC Holiday Co accepts a booking and payment from the Brown family for holiday accommodation for the period between 10 January 2024 and 15 January 2024.
Under ABC Holiday Co's terms and conditions, payments for accommodation bookings are made to the supplier at the end of the guests' stay. ABC Holiday Co pays the supplier for the Brown family's accommodation provided on 16 January 2024, after the Brown family has checked out.
ABC Holiday Co must report the transaction in its report for the 1 January to 30 June 2024 reporting period, the reporting period in which it paid the supplier.End of example
EDP operators should include information in their reports as specified in the approved form. EDP operators need to ensure the information reported is accurate. This includes taking reasonable steps to ensure the information provided by sellers is correct and systems are in place to collect the information needed for the report.
The ATO is authorised to collect tax-related information about transactions from EDPs, including information to identify the seller for these transactions. By reporting the information required under taxation third-party reporting, EDPs are not breaching the privacy laws.
A full list of key fields is available on the Software developersExternal Link website.
EDP operators must have appropriate systems and procedures in place to ensure the information they include in their reports to us is correct.
EDPs must take reasonable care to:
- collect the required information from sellers
- ensure seller information is recorded correctly and updated as needed
- correct errors when they are identified.
Penalties may apply for late or incorrect information provided.
We will work with you so that you understand your reporting obligations and have access to all the information you need to prepare and lodge your report.
Relationship managers are available if you need further support.
If you have any questions or need support in understanding or meeting your SERR obligations, email email@example.com.Under the Sharing Economy Reporting Regime, Electronic Distribution Platform operators must report certain transactions.