The sharing economy is such a hot topic right now. Think Airbnb, Uber and Airtasker.
If you bring in income via the sharing economy you might be disappointed to learn that tax rules apply to the sharing economy just like they do to the rest of the economy.
The Federal Court of Australia has handed down its decision that ride-sourcing is taxi travel. For GST purposes, the word taxi means a car (vehicle) made available for public hire that is used to transport passengers for fares. Don’t be caught out thinking that you earn less than the current GST registration threshold of $75,000 – it doesn’t apply to ride-sourcing enterprises!
In Australia, if you operate a ride-sourcing enterprise you are required to:
- keep records
- have an Australian business number (ABN)
- register for GST, regardless of how much you earn
- pay GST on the full fare received from passengers for each trip you provide
- lodge activity statements
- include income from ride-sourcing in your income tax returns.
Not sure if what you are doing is considered running a ride-sourcing enterprise? Australian Taxation Office website provides more information:
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