Sharing economy reporting system now law
Amendments to the tax administration legislation that recently received royal assent, will require operators in the sharing economy to report income earned by sellers on their marketplace. This is based on the ATO’s determination that income earned on these platforms is a high-risk for non-compliance with tax obligations.
The taxpayers required to comply with this reporting regime will be operators of:
- taxi travel (including ride-sourcing/ridesharing) – from 1 July 2023
- short-term accommodation – from 1 July 2023, and
- asset sharing, food delivery, task-based services and all other supplies – from 1 July 2024.
From these dates, if you earn income from these platforms will be reported directly to the ATO as assessable income to be included in your tax return.
Based on other data reporting systems, information which is generally included in the reports is your name, ABN, address, gross income and any GST you should be reporting. If this information is currently incorrect with these platforms you operate within, we suggest that you update your information promptly.
If you would like to know more about these developments, please feel free to contact us on 02 9188 0731. We would be happy to help you through your necessary obligations.
