News
Tax obligations of the sharing economy
The sharing economy allows business owners to earn extra money. It works by connecting buyers and sellers, most commonly through an app or a website.
The sharing economy allows business owners to earn extra money. It works by connecting buyers and sellers, most commonly through an app or a website.
Existing income can be topped up by:
- Completing jobs or errands for payment
- Renting out your vehicle
- Providing ride-sourcing services
- Renting out all or part of your house, apartment or unit.
The Australian Taxation Office (ATO) encourages small business owners to consider the tax obligations that need to be met when income is earned through the sharing economy.
The ATO states that all earnings will need to be declared in the tax return, and expenses can only be claimed on the business portion. There may also be a requirement to register for an Australian Business Number (ABN) and registering for and paying GST, as well as lodging business activity statements.
The ATO urges small business owners to keep records of what they earn, which will help when claiming deductions.
Date published 13 Sep 2017 | Last updated 13 Sep 2017
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our multiple locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.