The sharing economy is a way of connecting buyers and sellers, usually via an online platform.
Popular sharing economy services are:
- ride-sourcing services for a fare (Uber);
- renting out a room or house for accommodation, such as through Air bnb or Stayz; and
- providing personal services, like deliveries and furniture assembly, for example Airtasker
It is necessary to consider the tax implications of these and other sharing economy services – like declaring your income, deductions you are allowed to claim in your tax return, and keeping all your records and receipts. Accounting Professionals Tax Specialist, Wayne Hooten explains:
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It’s important to consider other taxes like GST and capital gains tax. For GST you will need to look at if you are carrying on an enterprise, getting an ABN and registering for GST. It’s important to note for all ride-sourcing enterprises, like Uber, GST registration is required even if your business turnover is less than $75,000.
Capital gains tax also can apply. Normally when you sell main residence, the profit is usually exempt from tax. However if you rent out a room on a sharing economy platform, you won’t get a full exemption from capital gains tax.
Get in touch with us at firstname.lastname@example.org and let us help you with your tax and GST issues.