What are your tax obligations in the sharing economy?

Sharing apps

Are you one of the many Australians who earn income through the sharing economy? If so, you may have tax obligations.

What activities make up the sharing economy?

The sharing economy is economic activity through a digital platform (such as a website or an app) where people share assets or provide services for a fee.

Common sharing economy activities include:

  • providing ride-sourcing services for a fare
  • renting out a room, whole house or a unit on a short-term basis
  • sharing assets such as cars, caravans/RVs, car parking spaces, storage spaces or personal belongings
  • providing personal services, including creative or professionals services like graphic design, creating websites or odd jobs like deliveries and furniture assembly.

Things to consider

You need to consider how income tax, goods and services tax (GST) and other obligations apply. The income you earn is assessible and you:

  • need to include it in your tax return
  • can claim deductions for certain expenses
  • need to keep records of your income and expenses
  • may need an Australian business number (ABN) and to register for GST.

If you provide ride-sourcing services you need to get an ABN and register for GST, regardless of how much you earn.

More detailed information about the sharing economy can be found on the ATO website.

Australian Taxation Office (ATO)

The Australian Taxation Office (ATO) is the principal revenue collection agency of the Australian Government.

Our role is to effectively manage and shape the tax and superannuation systems that support and fund services for Australians.