Sharing Economy Under Fire. The sharing economy in Australia is now estimated to be worth over $6 billion to the economy. The ATO have been increasing audit activity in the sharing economy in order to target those incorrectly or under-declaring their income. Now, the Government has released draft legislation requiring operators of electronic platforms such as Uber, Deliveroo, AirBnB and Car Next Door to report the identity and income of operators directly to the ATO. It is expected that the regime will apply to transactions relating to:
  • Ride-sourcing and short-term accommodation from 1 July 2022
  • Asset sharing, food delivery, tasking-based services and other services from 1 July 2023.
The sharing economy is the acquisition, provision and sharing of goods and services through an online platform for a fee. Income earned through the sharing economy is assessable and needs to be declared in your Tax return. The sharing economy regime was first recommended by the Black Economy Taskforce and included in the 2019-20 Mid-Year Economic and Fiscal Outlook. If you are a seller in the sharing economy and would like to know more about your Tax obligations, do not hesitate to contact your trusted Hall Chadwick advisor.