About the sharing economy

If you provide services or assets for a fee through the sharing economy, income tax and GST applies to your earnings.

Operators of the electronic distribution platforms (EDPs) that underpin much of the sharing economy are required to report to us through the Sharing Economy Reporting Regime.

Watch

 Popular sharing economy activities include:

• providing ride-sourcing (also known as ride-sharing) services for a fare through platforms
• renting out a room, house or unit through online platforms
• sharing assets through platforms, including
  • cars
  • caravans or RVs
  • car parking spaces
  • storage space
  • personal belongings
• providing services in the 'gig economy' through platforms, including
  • graphic design
  • creating websites
  • odd jobs like deliveries and furniture assembly.

Activities not part of the sharing economy

Some activities aren't considered part of the sharing economy, for example:

• online selling or classifieds
• crypto asset exchanges
• peer-to-peer finance or crowdfunding

However, you still need to consider how income tax, GST and other obligations may apply to you if you earn income from these other activities.

Get help with your tax affairs

If you need more help with your tax affairs, you can always speak to a registered tax or BAS agentExternal Link.

For more information on the sharing economy and tax see:

• Superannuation and the sharing economy
• Preparing for a potential tax bill
• Data matching
• Sharing Economy Reporting Regime

Watch:

What is ride-sourcing

Ride-sourcing, sometimes referred to as ride-sharing, is an ongoing arrangement where:

• you (a driver) are using a car to transport passengers for a fare
• a passenger uses a third-party digital platform, such as a website or an app, to request a ride.

Your ride-sourcing income is subject to GST and income tax.

GST for ride-sourcing

You must be registered for an Australian business number (ABN) and GST from the day you start providing ride sourcing services, regardless of how much you earn. The only exception is if you're an employee.

Penalties and interest may apply if you don't register for GST.

When you’ve registered for GST, you need to:

• report and pay GST collected on sales from your ride-sourcing activities
• lodge your business activity statement (BAS) monthly or quarterly
• claim GST credits for purchases relating to your ride-sourcing and other business activities. Remember you can't claim GST credits for purchases for your personal use.
• issue a tax invoice for fares over $82.50 if a passenger asks you.

Income tax for ride-sourcing

You also need to report all your income from your rides in your tax return.

You need to:

• include the income you earn in your tax return
• only claim deductions related to transporting passengers for a fare
• remember to apportion expenses to the time you are providing a ride-sourcing service
• keep records of all your expenses and income – you may use the free myDeductions tool in the ATO app.

Other languages

If you speak a language other than English, you can read our guide, Ride-sourcing – the basics, in the following languages:

• Arabic
• Chinese
• Dari
• Hindi
• Korean
• Punjabi
• Vietnamese

Registration requirements

Ride-sourcing is taxi travel for GST purposes. The standard GST registration rule for GST turnover of $75,000 or more does not apply when it comes to ride-sourcing – you have to register for GST regardless of how much you earn.

Therefore, if you're a ride-sourcing driver, you must be registered for GST before your first trip. To be registered for GST, you need to have an ABN.

Penalties and interest may apply if you don't register for GST.

How to register

You can get an ABN and register for GST at the same time if you register online using Online services for business.

When applying for an ABN, use the following details:

• type ‘taxi ride sourcing’ as your business description
• select 'taxi driver (except owner/operator)' or 'taxi cab service'.

When registering for GST, you need to:

• register from the date you intend to, or started, ride-sourcing
• choose to report your GST payments monthly or quarterly (you can't choose annually).

Alternatively, a registered tax or BAS agentExternal Link can register for you.

Once you have registered for GST, provide your ABN to the platform you're using, as they may issue tax invoices for you.

If you already have an ABN but haven't registered for GST yet, you have to register within 21 days from the time you start providing ride-sourcing services. You can register for GST online, by phone or through your registered agent.

If you're already registered for GST, for example as an IT contractor, you can use the same GST registration for your ride-sourcing activities.

Fuel tax credits

Fuel tax credits can only be claimed for eligible fuels and activities. Fuels used in light vehicles travelling on public roads, including for ride-sourcing services, are not eligible for fuel tax credits.

GST is charged on the full fare passengers pay you for ride-sourcing services. The full fare, which includes GST, is generally calculated by the platform you're using.

As a ride-sourcing driver, you need to report and pay the GST your business has collected using a business activity statement (BAS).

Once you have registered for GST, you can also use a BAS to claim a credit for any GST included in the price of any goods and services you buy for your business.

You need to report your GST payments monthly or quarterly on a BAS (you can't choose to report annually).

The fare calculated by your digital platform is the full fare, which includes goods and services tax (GST).

GST must be calculated on the full fare, not the net amount you receive after deducting any fees or commission.

For example, if a passenger pays $55 for a fare, the GST payable is one-eleventh of the fare, that is $55 ÷ 11 = $5. You need to pay this $5 to us. The digital platform takes out their fees or commission, for example $11, from the full fare and pays you $44. If the digital platform fee of $11 includes GST, you may be entitled to claim a GST credit of $1 (one-eleventh of the fee).

Some digital platforms include GST on the commission they charge. If they do, you may be entitled to claim a GST credit.

You will need to look at how each digital platform charges fares to determine the correct way to calculate your GST.

If you provide ride-sourcing services, you may be able to claim GST credits for business purchases you make, such as:

• fuel
• tolls and parking fees
• registration and insurance
• service fees or commission charged by the platform
• a depreciating asset.

GST credits are claimed when you lodge your BAS.

Apportioning expenses

You need to apportion your expenses, and the GST on those expenses, between personal and business use. You can only claim a GST credit for the business portion of the expense.

If you have claimed a GST credit for an expense, you can only claim a deduction for the expense minus the GST.

Service fees or commission

You may be charged GST on service fees or commission charged by a GST-registered platform. If this is the case, you can claim a GST credit if you're registered for GST.

If the service the platform provides is completely or partly based outside Australia, and you haven't provided the platform with your ABN and a declaration that you are registered for GST, they must assume that you’re not registered and GST will be applied.

Expenses paid for by passengers

There are some expenses that are paid for by passengers, for example, tolls. You are entitled to claim a GST credit for the GST included in the price of expenses paid for by your passengers.

Purchasing or upgrading a car

When purchasing or upgrading a car for ride-sourcing activities, you need to have genuinely been in business at the time of purchase to be eligible to claim a GST credit. This means you need:

• an ABN and to be registered for GST at the time of purchasing the car
• to have made your first ride-sourcing trip before or within a reasonable amount of time after purchasing.

You can't backdate your registration to claim the GST on a new car if you don't meet this criteria.

Generally, if you purchase a car and the price is more than the car cost limit, the maximum amount of GST credit you can claim is one-eleventh of the car limit amount.

You can't claim a GST credit for any luxury car tax (LCT) you pay when you purchase a luxury car, regardless of how much you use the car in carrying on your business.

In general, the value of a car includes the value of any parts, accessories or attachments supplied or imported at the same time as the car.

Providing a tax invoice

If a passenger requests a tax invoice (not just an invoice) for a fare over $82.50 (including GST), you must provide one within 28 days of their request.

The platform might do this on your behalf if they have your GST registration details. However, if they don't, you need to provide a tax invoice that includes your ABN (such as using a tax invoice book with your ABN printed on each page).

The tax invoice must contain certain information including your ABN (see examples of the appropriate information for your tax invoice). If the platform will issue tax invoices on your behalf, you should advise them of your GST registration details.

Any fares under $82.50 (including GST) do not require a tax invoice so you can just issue an invoice.

For more information, see Types of invoices (business.gov.au)External Link.

Requesting a tax invoice

If you pay for ride-sourcing services, you can request a tax invoice from the driver for fares over $82.50 (including GST). Some platforms provide tax invoices on behalf of the drivers and are available through their app or website.

If you receive a tax invoice that doesn't contain the required information and you wish to claim a GST credit, you should contact the driver and ask them to issue a correct tax invoice.

The income you earn from ride-sourcing is assessable income. This includes fares, tips or bonuses from the digital platform. You must report the income in your annual tax return. This applies even if you're providing ride-sourcing services on a casual basis to supplement your income from another job or other business activities.

You will be able to claim deductions for expenses to the extent that they directly relate to providing ride-sourcing services.

Lodging your tax return

As you are operating a business, you need to lodge a tax return regardless of how much you earn from providing ride-sourcing services. You need to lodge the tax return for individuals, including the Supplementary section and the Business and professional items schedule.

The fastest way to lodge is online through myTax or a registered tax agent.

Declaring your income

If you use myTax:

• declare the income as business income by selecting    
  • you were a sole trader or had business income or losses, partnership trust distribution (not from a managed fund)
  • business/sole trader income or loss
  • business income or loss.
• type 'Taxi service operation (owner operator)' as your main business or professional activity if your main source of business income is ride-sourcing.

Be aware that we request data from digital platforms operating in Australia as a way to identify people who earn income through the sharing economy. We do this to help people who earn sharing economy income understand and meet their tax obligations, including their registration, lodgment, reporting and payment obligations.

For more information, see:

• How we use data matching
• Ride-sourcing data matching program protocol

Claiming deductions

Expenses you incur while providing ride-sourcing services are deductible. This can include costs related to maintaining or operating assets, such as a car or mobile device.

If you claim a GST credit for GST paid on an expense, you can only claim the remaining amount (the total cost minus GST) as an income tax deduction. See GST credits and income tax deductions for more information.

Expenses can sometimes be part business and part private use. You can only claim a deduction for the business portion of the expense – this is called apportionment. You need to show how you calculated the business and private use of your expenses.

Some examples of expenses you may be able to claim, if you incurred them while providing ride-sourcing services, include:

• depreciation for assets you own, such as your car (you may need to be able to prove ownership)
• fees or commission charged by the digital platform
• fuel
• lease payments for a car
• parking fees
• bottled water, mints, tissues, and newspapers that are provided for the use of passengers
• wipes, sanitisers and anti-bacterial spray provided for passengers and used to clean your vehicle
• tolls, if the passenger didn't pay for them. You may be entitled to claim a GST credit for GST included in the price of the toll.
• state or territory commercial licences and approvals such as driver accreditation, driver registration and application fees, medical tests and police checks. Note: The costs of getting and maintaining a private driver licence is considered a private expense and is not deductible.
• tax agent fees and payments for similar services.

There are special rules for working out deductible car expenses.

If you're a small business, you may be eligible for a range of concessions, such as the instant asset write-off. To work out if you are eligible, first work out if you are a small business entity in an income year. You can't claim an instant asset write off for your car if you owned it as a private-use car before starting your ride-sourcing activities. You must review your eligibility each year.

You can keep records for deductions in hard copy or electronically. Keep all records for 5 years following the lodgment of your tax return.

Working out the business/private portion of an expense

When claiming a portion of an expense as a business-related deduction, you need to be able to show how you calculated the business-related amount. This is known as apportionment.

Common ways to show how you apportioned expenses include:

• keeping diary entries of specific usage throughout the year
• claiming expenses from an itemised bill.

You can use the myDeductions tool in the ATO app to record your expenses. This includes expenses apportioned for both business and private use.

 

 

Calculating car expenses

You'll likely use your car for both ride-sourcing services and personal use, which means you need to apportion any car expenses.

There are 2 methods to work out car expenses for sole traders:

• cents per kilometres travelled
• keeping a logbook to calculate the amount of car expenses claimed.

When choosing a method, you:

• can use our Work-related car expenses calculator to work out which method gives you the best result
• can use different methods for different vehicles
• can change methods from year to year
• must keep appropriate records.

These methods can only be used to claim expenses for a car you owned or leased. You are treated as the owner if you held the car under a hire purchase agreement.

You can't claim a deduction for ownership expenses relating to a car owned or leased by someone else, including your employer or another member of your family. However, we consider you to be the owner or lessee of a car, and therefore eligible to claim expenses, where a family or private arrangement made you the owner or lessee even though you were not the registered owner. For example, you can claim for a car if it met all the following conditions:

• The car was given to you by another member of your family.
• You had permission to use or deal with the car as your own, even though it was not registered in your name.
• You paid all expenses for the car, including registration and any insurance.

If you use someone else's car for ride sourcing purposes, such as borrowing a friend or family member's car, and you do not have permission to use, or deal with, the car as your own, you will only be able to claim the direct costs (such as fuel) that you paid as a deduction. You will not be able to claim the costs of ownership such as depreciation.

The easiest way to track your car expenses is by using the ATO app's myDeductions tool (see Add your trips).

The cents per kilometre method

When using the cents per kilometre method, you base your claim on a set rate for each business kilometre. You can claim up to a maximum of 5,000 business kilometres per car per income year. The set rate per business kilometre covers the general running costs of your car, including depreciation, fuel, servicing and insurance. If you use this method you:

• don't claim deductions for these expenses separately
• can't make a separate claim for depreciation of the car’s value.

If you use this method, you do not need written evidence to show how many kilometres you have travelled. However, we may ask you to show how you worked out your business kilometres (for example, by producing diary records of ride-sourcing kilometres travelled).

Where you and another joint owner both use the car for separate income-producing purposes, you can each claim up to a maximum of 5,000 kilometres.

Find out more about the Cents per kilometre method.

The logbook method

When using the logbook method, you can claim the business-use percentage of car expenses.

Expenses:

• include running costs, depreciation and interest
• does not include capital costs, such as the purchase price of your car or an amount borrowed to buy it.

To work out your business-use portion, you need to keep a logbook and record the odometer readings for the logbook period, which is a minimum continuous period of 12 weeks.

Each logbook you keep is valid for 5 years, but you may start a new logbook at any time. If you establish your business-use percentage using a logbook from an earlier year, you must keep that logbook and maintain odometer readings in the following years.

You can claim fuel and oil costs based on either your actual expenditure or you can estimate the expenses based on odometer records that show readings from the start and the end of the period you had the car during the year.

You need written evidence for all other car expenses.

Find out more about the Logbook method.

Expenses you can't claim

There are some expenses you can't claim because they're personal expenses or not allowed under the law. This includes things like:

• the cost of getting and maintaining a private driver licence
• fines, for example speeding or parking fines
• fuel tax credits
• personal or private expenses, such as meals you purchase while on a break, or the private use of a car used for ride-sourcing activities.

Losses

As a ride-sourcing driver carrying on a business, there are restrictions on your ability to use a yearly loss from your ride-sourcing business against other income. It would be considered unusual for ride-sourcing drivers to have deductions greater than their income for a tax year. In these circumstances, you would need to consider the non-commercial loss rules.

Overview

Records you need to keep for ride-sourcing include:

• statements from ride-sourcing platforms that show your income
• receipts of any expenses you want to claim deductions for
• logbooks and odometer readings.

Find out more about Record keeping for business.

myDeductions tool

One of the easiest ways you can keep records for ride-sourcing is by using the myDeductions tool in the ATO app. You can:

• include your income from ride-sourcing and record how much GST is included
• take a photo of receipts and enter details
• indicate a percentage for private use
• use the 'add trip' function to set up a logbook and record your trips.

We don’t track personal information entered in the app.

When it comes to tax time, your records from myDeductions:

• can be shared with your tax agent via email
• uploaded to us so we can use them to pre-fill your myTax tax return or your tax agent's SBR-enabled software.

You need to understand your tax obligations when you rent out all or part of your residential house or unit through a digital platform. This includes renting out:

• part (one or more rooms) or all of your home (your main residence) – whether or not you were living in the home at the time, or at other times during the year
• any other property you own – see Owning and renting a property or holiday home.

You need to keep records:

• of all income earned and declare it in your income tax return
• of expenses you claim as deductions
• for the purchase, sale and holding costs and declare any capital gain or loss (capital gains tax (CGT)) in your income tax return when you sell the property.

If you provide services (for example, breakfast or cleaning) in addition to providing a room, it doesn’t mean that you are providing ‘board’ – or anything else other than renting out your space.

It is rare for someone to be carrying on a business because they are renting out a property. For more information, see Using your home to produce income.

You can visit the ATO Publication Ordering Service to download a copy of the Renting out a room or part of your main residenceExternal Link fact sheet.

GST

You don't need to pay GST on amounts of residential rent you earn.

You only need to consider GST if you carry on an enterprise renting out commercial residential premises, such as a commercial boarding house.

Renting out part of your home on a regular basis

You need to work out the portion of your expenses that relate to the floor-area being used solely by the renter (user) and a reasonable floor-area of the common areas used.

You also need to work out the number of days part of your home was rented because you can only claim expenses for the days in a year when that part of your home was rented. When a room in your home is not being rented out, it is treated as being used privately as part of your home.

For example, if you rent a room in your 2 bedroom unit and the renter has access to all of the common property you would calculate the floor area as:

• Rented room (claim 100% for days rented)

(Rented room's floor-area ÷ Total floor-area of the unit) × (Number of days rented ÷ Total days in the year) × 100 = Percentage of deductible expenses

• Common areas (claim 50% for days rented):

(Total common areas ÷ Total size of house or unit) × (Number of days rented ÷ Total days in the year) × 50% × 100 = Percentage of deductible expenses

 

Renting out your whole home on an occasional basis

If you rent out your whole home (main residence) on an occasional basis through the sharing economy, you can claim the portion of expenses relating to the period it was rented out.

This applies if you rent out your home when you're away for a period of time, or if you vacate it to allow paying guests to stay. In this case, the total expenses you can claim must reflect the portion of the income year your home was rented out.

If you rent out all or part of the home, the payments you receive are assessable income. This means you must declare the income as rental income in your tax return.

You need to keep records such as:

• statements from platforms that show your income
• receipts of any expenses you want to claim deductions for.

Watch

Watch:

You can find out more information about:

• Rental income you must declare
• Rental expenses
• Tax time toolkit for investors
• Rental properties guide 2025

Declare your income

You need to include all income earned from renting your property through a digital platform in your tax return, including:

• all income before fees and commissions, including any host or cleaning fees, are deducted
• insurance payouts – for example, compensation for damage caused by renting
• bonds or security deposits you become entitled to retain
• letting and booking fees you charge, including cancellation fees.

Make sure to include the platform name as the description for the income.

Be aware that we receive data from digital platforms operating in Australia to identify people who earn income through the sharing economy. We do this to help people who earn sharing economy income understand and meet their tax obligations.

For more information, see Rental income you must declare and the Sharing Economy Reporting Regime (SERR) page.

Deductions you may be able to claim

Common expenses you may be able to claim all, or part of (portion), as a deduction include:

• council rates
• interest on a loan for the property
• electricity, gas and water
• property insurance
• cleaning and maintenance costs (products used or hiring a commercial cleaner)
• fees or commission charged by the platform

You can also claim a deduction for all, or a part of, any other expense that directly relates to earning your rental income, including repairs to fix damage caused by a paying guest.

It's important to keep good records, because how much (the portion) of the expense you can claim depends on:

• the number of days you rent out the house or property during the year
• the portion of the property you have rented out (for example, a room or the whole property).

You can claim 100% of any expenses that only relate to renting out your home to paying guests (such as fees or commission charged by the platform).

Find out more about rental expenses.

When working out your eligibility for a full or partial CGT main residence exemption, you need to factor in both:

• floor-area of the residence you rent
• the number of days the property was used to generate income.

You will need to keep records, such as:

• statements from platforms that show your income
• receipts of any expenses you want to claim as a deduction.

For more information, download our factsheet about Capital gains tax on the sale of property.

Watch:

When you share assets (excluding accommodation) through a digital platform, you:

• need to declare all income you receive in your income tax return
• are entitled to claim certain expenses as income tax deductions
• need to keep records of the income you earn and of the expenses you can claim as deductions
• may need to apply for an Australian business number (ABN) and register for GST, if you're running an enterprise of renting or leasing (sharing) assets
• will only be taxed on the gain you make on a depreciating asset when you sell the shared asset.

There are many types of assets that can be shared through a platform, including:

• personal assets - for example, bicycles, boats, cars and caravans/recreational vehicles
• storage or business space - for example, car parking spaces, offices and kitchens
• personal belongings - for example, tools, equipment and clothes

Renting out all or part of your home has different rules you need to consider.

If you're running an enterprise of renting or leasing (sharing) assets, you may need to apply for an Australian business number (ABN) and register for GST if:

• your GST turnover is $75,000 or more
• you are entitled to claim fuel tax credits for your business and wish to do so. Note that fuels used in light vehicles travelling on public roads aren't eligible for fuel tax credits.

When working out your GST turnover, you need to look at the income from all of your businesses or enterprises.

If you're registered for GST, you can claim GST credits for expenses related to your business. If you're claiming GST credits for purchasing an asset, you need to apportion the expense for personal and business use. Additionally, cars have special rules when claiming GST credits that you need to consider.

If you're already registered for GST

If you have an existing GST registration and you use the same ABN for asset-sharing activities, you will need to report and pay GST on all business income you receive.

Lodging your tax return

The income you earn from sharing assets (that you own or lease) is assessable income and must be reported in your business income tax return. This applies even if the income from asset sharing is small or is only done to supplement your income from a job or business activities.

You can claim deductions for expenses that directly relate to sharing your assets.

You will need to keep records such as:

• statements from platforms that show your income
• receipts of any expenses you want to claim deductions for.

The person or people who own or lease the asset, regardless of who is registered on the platform, reports the income in their tax return. If you own an asset jointly with another person, you will need to declare your income and expenses in proportion to your share of the asset.

If you are carrying on a business of renting, leasing or sharing assets, what you need to report and how you lodge your annual tax return for your business depends on your type of business entity.

Declaring income

If you earn income from sharing assets, you need to include this income in your individual income tax return.

If you're not an employee of the platform or carrying on a business, report any asset-sharing income as Other income. Make sure to:

• include the platform name as the description
• report income from each platform separately.

If you're carrying on a business of asset sharing, then you need to lodge the tax return for individuals, including the Supplementary section and the Business and professional items schedule.

If you own the asset jointly with another person, each person needs to report the income and deductions related to their share of the asset.

Claiming deductions

Any deductions related to asset-sharing income should be included as other deductions.

To claim a deduction for asset-sharing expenses:

• you must have spent the money yourself and have not been reimbursed
• it must relate directly to asset-sharing income
• you must have records to prove it.

You will likely have expenses related to both personal and income-producing use when sharing your assets. You can only claim a deduction for the income-producing portion. You will need to work out the percentage that reasonably relates to the income-producing use and apportion the expense.

Some common examples of expenses for sharing assets include:

• maintenance or servicing of the asset
• decline in value (depreciation)
• insurance
• registration (for example, for cars, caravans/RVs or boats).

Some service fees or commission charged by an asset-sharing platform may be claimed as a deduction in full, depending on the nature of the fees and charges.

If you're registered for GST and claimed GST credits on your expenses, you can only claim the remaining amount (expense minus the GST) as a tax deduction.

Some assets, such as caravans and recreation vehicles and cars, have specific rules for claiming deductions.

Losses

When carrying on a business, there are restrictions on your ability to use a yearly loss from your business against other income. If you have deductions greater than your income for a tax year, you will need to consider the non-commercial loss rules.

When you share your caravan or recreational vehicle (RV) (including a campervan, motor home or camper trailer) through a peer-to-peer sharing platform there are certain things that you need to be aware of. You need to:

• declare all your income in your tax return
• only claim the expenses you are entitled to claim as income tax deductions
• keep records of your income and the expenses you can claim as deductions.

Claiming expenses

You can claim expenses for income tax purposes as long as:

• they are directly related to the sharing of your caravan or RV
• you keep records such as receipts to back up your claims.

You may be able to claim 100% of expenses you incur (such as membership or listing fees and commission) under the terms of the contract with the peer-to-peer platform.

All other expenses you incur need to be apportioned to take into account private use, such as:

• storage fees
• lease or interest payments and depreciation
• insurance
• registration
• cleaning.

Apportioning the expenses for private use

If you share your caravan or RV and there is also private use during the year, your expenses need to be apportioned according to income-producing and private use. You can't claim deductions for the portion of expenses relating to private use.

Private use includes free of charge use by you, your family, your relatives and your friends.

If your caravan or RV is rented or hired out to family, relatives or friends at below market rates, your deductions are limited up to the amount of the income you receive.

If you purchased or use the caravan or RV mainly for private use, the periods when the caravan or RV is not rented or hired, even if it's available for rent or hire on the platform, are counted as private use. You will only be entitled to claim a deduction for expenses in proportion to the time the caravan is actually being shared.

If you purchased or use your caravan or RV mainly for income-producing use, you're entitled to claim deductions for periods when the caravan or RV is rented or genuinely available for rent. For your caravan or RV to be genuinely available for rent, you must:

• advertise it widely so it will attract users
• respond to enquiries in a reasonable period
• make it available during peak periods when people want to rent it
• ask for a fair rent comparable to other listings
• ensure it's in a location and condition that will make it likely to attract tenants
• not refuse to rent it to interested people without adequate reasons.

Even caravans and RVs that are mostly for income-producing or investment purposes are able to have periods of private use. If you use it yourself or rent it to family or friends at less than market rates, you will be required to apportion your expenses and only claim a deduction for the expenses up to the amount of income received.

 

For more information, see Income and deductions.

When you share (rent or hire out) your car through a peer-to-peer car sharing platform you need to:

• declare all your income in your tax return
• only claim the expenses that are directly related to the sharing of your car and that you are entitled to claim as income tax deductions
• keep records, such as receipts or logbooks, to back up your claims.

As car sharing membership agreements may vary between platforms, the expenses you may incur can also vary. Your main expenses may include:

• membership fees
• availability fees
• car expenses

Membership fees

Some car sharing membership agreements charge owners a membership fee for accessing their services and online platform. Generally, you may claim the full amount of the membership fees that your car sharing platform charges you.

Availability fees

Some car sharing membership agreements contain an availability requirement for sharing your car. There may be a requirement for your car to be available for a certain number of months each year or for a particular number of weekends each month. If you fail to meet the availability requirement, you may be charged a fee that you will be able to claim as a deduction.

Car expenses

You can deduct car expenses that directly relate to the sharing of your car. These rules do not apply to other vehicles such as trucks, motorbikes, bicycles or self-driving recreational vehicles.

You can only claim a deduction for a car that you own or lease. For example, you can't claim car expenses for an employee vehicle under a salary-sacrificed novated lease. However, you still need to declare the income you have received and may also claim non-car expenses such as membership fees.

Car expenses include depreciation, interest, leasing payments, insurance and registration. They can also include service, repair, cleaning and fuel expenses if you incur those expenses under your car sharing agreement. For example, different agreements require either the car borrower or the car owner to pay the costs of refuelling the car. You are only entitled to claim expenses where you have spent the money yourself and weren't reimbursed.

In most cases, you will also use your car for personal use. This means you need to apportion any car expenses between personal and income-producing use.

If you own the car as an individual (or as a partner in a partnership where at least one partner is an individual), there are 2 methods of claiming car expenses:

• cents per kilometres travelled
• keeping a logbook to calculate a proportion of car expenses claimed.

Cents per kilometre method

If you use the cents per kilometre method, you can claim a maximum of 5,000 income-producing kilometres per car.

You can count all the kilometres used during car sharing as income-producing travel. If you also use the car for other income-producing purposes, such as ride-sourcing, then you count this as part of your yearly income-producing travel kilometres as well.

If you drive the car for other income-producing purposes, you will need to add that travel to the car sharing travel to work out your total income-producing kilometres travelled. This will be subject to the 5,000 kilometre limit for that car.

You don't need written evidence to show how many kilometres you have travelled, but we may ask you to show how you worked out your income-producing kilometres. When using the cents per kilometre method, your claim is based on a set rate for each income-producing kilometre travelled.

The cents per kilometre method takes all your vehicle running expenses into account. This means that you can't claim any specific car-related expenses such as depreciation or interest or lease payments in respect of using your car to earn income from car sharing.

Logbook method

If you use the logbook method, you can claim the income-producing use percentage of car expenses based on the logbook records of your car’s usage.

You do this by:

• dividing the distance travelled for income-producing use by the total distance, and then multiplying this number by 100 to get the percentage
• determining your total expenses, including depreciation, for the income year
• multiplying your total expenses by your percentage to find the total amount you can claim.

We will accept the information provided by your platform provider as evidence of the income-producing kilometres your car has travelled. You also need to keep your yearly opening and closing odometer readings for the logbook period, which is a minimum continuous period of 12 weeks.

Each logbook you keep is valid for 5 years, but you may start a new logbook at any time. If you establish your income-producing use percentage using a logbook from an earlier year, you must keep that logbook and maintain odometer readings in the following years.

If you drive the car for other income-producing purposes, you will need to add that travel to the car sharing travel to work out your total income-producing kilometres.

If you sell a shared asset that is personal property (such as a boat, caravan, RV or car) and have claimed depreciation, you may need to include part of the depreciation as assessable income in your tax return if the amount of depreciation for tax purposes is greater than the asset's real decline value reflected in the sale price of the asset.

If you share an asset for a fee through a digital platform, it's likely you'll use the asset for both income-producing and private use.

Generally, you will only be taxed on the gain you make on a depreciating asset, when you sell the asset, to the extent that you were using it to rent out, and not privately.

For more information, see:

• Disposing of a depreciating asset
• Guide to depreciating assets 2024

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:

• Are you in business?
• Employee or contractor - what's the difference

When you need to register for GST

If you're running an enterprise of providing services through a digital platform you may need to register for an Australian business number (ABN) and goods and services tax (GST). For more information, see Are you in business?

If you're an employee, you are not entitled to an ABN or required to be registered for GST.

You need to register for GST if:

• your GST turnover is $75,000 or more
• you are entitled to claim fuel tax credits for your business and wish to do so. Note that fuels used in light vehicles travelling on public roads aren't eligible for fuel tax credits.

  When working out your GST turnover, you need to look at the income from all of your businesses or enterprises.

  If you're registered for GST, you can claim GST credits for any expenses related to your business.

  You need an ABN to register for GST.

  If you're already registered for GST

  If you have an existing GST registration and you use the same ABN for sharing economy activities, you will need to report and pay GST for all business income.

  For example, you will need to report and pay GST for all income if:

• you're providing ride-sourcing services and dog-sitting services (as an enterprise) and use the same ABN
• you run a GST-registered business as a tradesperson and you pick up odd jobs through the sharing economy using the same ABN.

Income you earn from providing your services through a digital platform is assessable income and needs to be reported in your tax return.

This applies even if this income is to supplement your income from a job or business activities. It does not matter whether you are carrying on a business or engaged as an employee or independent contractor. The money you earn from providing services of any kind for a fee needs to be declared in your tax return. You can claim deductions for expenses that directly relate to your services income.

You will need to keep records such as:

• statements from platforms that show your income
• receipts of any expenses you want to claim deductions for.

For more information, see:

• Records you need to keep – for individuals
• Record keeping for business

Lodging your return

How you lodge your return will depend on your relationship with the platform and other parties to the arrangement.

If you are in business

If you're providing services as a business, you will need to include this income as business income in your tax return. The structure of your business will determine which return this income is reported in. When earning income for services as a business, you need to consider whether personal services income (PSI) applies to you.

Income you earn mainly from your personal skills, efforts or expertise is classified as PSI. If the income is PSI, you will need to work out if special tax rules (the PSI rules) apply. If the PSI rules apply, they will affect how you report your income to us and the deductions you can claim.

You can use the PSI tool to work out whether PSI was received and if the PSI rules apply.

If you are not in business

If you're providing services through a digital platform and you're not in business, you need to include this income in your individual tax return. You can do this online through myTax or a registered tax agent.

If you:

• received a payment summary as an employee detailing your pay and any tax withheld, report this income under salary and wages and any deductions directly related to this income as work related expenses
• earned income for your services through a digital platform not as an employee, report this income as Other income and any deductions directly related to this income as Other deductions – make sure to include the platform name as the description for both income and deductions.

Claiming deductions

To claim a deduction related to the income you earn:

• you must have spent the money yourself and have not been reimbursed
• it must relate directly to the income earned from providing your services
• you must have records to prove it.

You may have expenses that relate to both private and income-producing use. If this is the case, you can only claim the portion related to the income-producing use. You may be able to claim service fees or commission charged by a digital platform as a 100% deduction.

Some common examples of expenses from offering your services include:

• travel expenses
• repairs, maintenance and replacement of assets
• home office expenses.

If you're registered for GST and claimed GST credits on your expenses, you can only claim the remaining amount (expense minus the GST) as a tax deduction.

If your income is PSI, the deductions you can claim may be limited.

For more information, see:

• Deductions you can claim – for individuals
• Deductions – for business.

Losses

When carrying on a business, there are restrictions on your ability to use a yearly loss from your business against other income. If you have deductions greater than your income for a tax year, you will need to consider the non-commercial loss rules.

Superannuation (super) is money set aside during your working life for when you retire.

Where you are earning income through the sharing economy, there won't always be someone paying super on your behalf.

If you're not entitled to have super paid on your behalf, you can boost your super by making your own contributions.

Providing services

If you're providing services, whether super is paid on your behalf into a super fund will depend on your working arrangements with the platform. If you're:

• an employee, you're typically entitled to compulsory super contributions from your employer
• a contractor, you may still be entitled to super if you are paid wholly or principally for your labour.

Learn more about choosing a super fund.

Prepayments

You can choose to make a prepayment, regularly or once off, to go towards a potential tax bill. To make it easier for you to manage your tax, you can make prepayments at any time and as often as you like.

Any prepayments made towards your tax before they are due will remain on your account unless you, or your agent, request a refund.

If you have an existing tax debt, prepayments may be used to pay that debt.

Pay as you go instalments

If you're earning (or expecting to earn) more than $4,000 a year from renting out a room, whole house or unit, you can consider entering the pay as you go (PAYG) instalment system voluntarily. This will stop you getting a large tax bill at the end of the year.

You can pay amounts every 3 months (quarterly) to help cover any income tax you may need to pay on your sharing economy income.

If you pay too much during the year, you will get the money back when you do your tax return.

If you don’t pay enough during the year, you'll pay the difference when you do your tax return – but it will be less than if you didn’t pay anything at all.

Find out how to start paying instalments.

We request data from digital platforms operating in Australia as a way to identify people who earn income through the sharing economy.

We do this to help people who earn sharing economy income understand and meet their tax obligations, including their registration, lodgment, reporting and payment obligations.

Find out more about how we use data matching.

We currently collect data from:

• ride-sourcing platforms
• sharing economy accommodation platforms
• other sharing economy platforms

For more information, including examples and reporting requirements, see the Sharing Economy Reporting Regime (SERR).