The “sharing economy” relates to activities which are quite commonly managed by a website or mobile app and include renting out a room, property or a car park; providing odd jobs, errands, deliveries or more skilled services on an ad hoc basis or using a car to transport passengers for a fare (known as ride-sourcing) – two common providers are Airbnb and Uber.
It is important for you to know that if you engage in these operations, even if you think it’s “on the side”…the Australian Taxation Office (ATO) are catching on! They warn that “the same tax laws that apply to activities conducted in a conventional manner apply to activities in the sharing economy.”
Essentially this means you need to report any income received (of course you can also claim your relevant deductions)…but there may be other implications such as capital gains tax and reporting requirements.
Each circumstance is different, and may depend on the type of business you are operating – so if you think you might be affected, please get in contact so we can make sure you are meeting your obligations!