For some business owners, the sharing economy can be a good way to earn extra money and top up your existing income. The sharing economy connects buyers and sellers, usually through an app or a website, and can include:
- completing jobs or errands for payment;
- renting out your vehicle;
- providing ride-sourcing services; or
- renting out all or part of your house, apartment or unit.
The sharing economy is about making the most of available resources. Depending on your circumstances as well as what you are doing, there are tax obligations you need to meet when you earn income through the sharing economy. You need to declare what you earn in your tax return and only claim the business portion of your expenses, just like you would normally do when running a business.
You may also need to:
- register for an Australian business number
- register for and pay GST and lodge business activity statements.
Know what you need to do and keep records of what you earn – it’ll be easier for when you claim deductions and saves you having to amend your tax return later on.