Sharing economy receipts now reportable directly to ATO

Recent amendments to legislation will require operators in the sharing economy to report income earned by sellers on their marketplace. This is based on the Australian Taxation Office’s (ATO) determination that income earned on these platforms is at a high-risk for non-compliance of tax obligations.

Operators who provide ride-sharing or short-term accommodation will be required to report first. From 1 July 2023, income you earn from these platforms will be reported directly to the ATO as assessable income to include in your tax return. It is also possible that the operators will be required to report every 6 months, ensuring you keep up to date on your GST obligations.

Transactions from all other types of sharing economy platforms will be reported to the ATO for income years commencing 1 July 2024.

Taxable Payments Annual Report

Prior to sharing economy digital operators being required to report transactions, the ATO usually allowed the affected industry participants to report annually. These annual reports included the following information:

  • names
  • addresses
  • ABNs
  • gross receipts, and
  • GST charged on the gross receipts.

It is expected that the reports for ride-sharing and online accommodation will be very similar, except that it is likely that the operators will report your transactions every 6 months instead of each year.

Risk mitigation steps

If you are using these platforms, it is likely that your data will be included in reports, such as the ATO’s Pre-fill reports. This will make it very difficult for you to avoid tax compliance, and it is encouraged that you ensure all necessary information is sent to us before the ATO begins amending assessments.

If you would like to know more about these developments, please give us a call. We would be happy to help you through your necessary obligations.

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