Sharing economy reporting regime - ATO finalises exemptions

The ATO has finalised determinations under s 396-55(b)(2) and s 396-70(4) of the Tax Administration Act 1935 on reporting exemptions and exclusions for sharing economy platform operators.

Amendments to the tax administration legislation now requires operators in the sharing economy to report income earned by sellers on their marketplace. This is based on the ATO’s determination that income earned on these platforms is a high-risk for non-compliance with tax obligations.

The taxpayers that are required to comply with this reporting regime are operators of:

taxi travel (including ride-sourcing/ridesharing) - from 1 July 2023

short-term accommodation - from 1 July 2023, and

asset sharing, food delivery, tasking-based services and all other supplies - from 1 July 2024.

From these dates, income you earn from these platforms is/will be reported directly to the ATO as assessable income to be included in your tax return.

Based on other data reporting systems, information which is generally included in the reports is your name, ABN, address, gross income and any GST you should be reporting. If this information is currently incorrect with these platforms you operate within, we suggest that you update your information promptly.

Reporting Exemptions

As per two determinations finalised by the ATO, Tthe following transactions are exempt from reporting (eligibility criteria applies):

First year of operations – if in the first year of operation and under $1 million in transactions (pro-rated).

Substantial property – the transaction involved the provision of consideration relating to a substantial property, like hotels and other forms of traditional short stay accommodations.

Listed companies –if the operator is a listed company or a wholly-owned subsidiary of a listed company.

Accommodation outside the indirect tax zone – The transactions that generally have no Australian income tax or GST consequences or there is not enough information to support that the supplier is a resident of Australia.

Extension of time where exemption not relied upon - as per F2023L01639, where the exemptions (discussed above) are not relied upon for a reporting period ending on or before 30 June 2024, the report must be submitted with the ATO on:

- 29 February 2024 - for reporting period ending on 31 December 2023

- 2 September 2024 - for reporting period ending on 30 June 2024

Contact Us

If you would like to know more about these developments, please feel free to contact us.