Tax for the Sharing Economy
The Sharing Economy is defined by the ATO as an economic activity through a digital platform (a website or an app) where people share assets or services for a fee.
If you provide services or assets through a platform for a fee, you should consider how income tax and GST (Goods and Services Tax) may apply to your earnings.
Examples of sharing economy activities include:
- Providing ride-sourcing (or ride-sharing) services for a fare, through platforms like Uber, Hi Oscar, Shebah or GoCatch.
- Renting out a room, a whole house, or a unit on a short-term basis, through platforms such as Airbnb, HomeAway or Flipkey.
- Sharing assets, such as cars, caravans/RVs, Car parking spaces, storage spaces or personal belongings, through platforms such as Camplify, Car Next Door, Space, Toolmates or Quipmo.
- Providing personal services, including creative or professional services like graphic design, creating websites, or odd jobs like deliveries and furniture assembly, through platforms such as OneFlare, Mad Paws or Hark Hark.
Activities that are not considered to be part of the sharing economy are:
- Online selling or classifieds, e.g. Gumtree, eBay or Carsales.
- Cryptocurrency exchanges
- Peer-to-peer finance or crowdfunding
However, the above activities may still be applicable for GST and other obligations, if you earn income from these activities.
Speaking to a registered tax agent will help you gain clarity over your obligations.
Learn more about:
- Renting out all or part of your home
- Sharing assets (excluding accommodation)
- Providing services
- Superannuation and the sharing economy
- Preparing for a potential tax bill
- Data matching