Are you one of the many Australian business owners that will earn additional income through the sharing economy this summer? If so, you may have tax obligations.
Growing rapidly and common all year round, sharing economy activity tends to particularly ramp up during the summer holiday season. Some of these activities include:
- providing ride-sourcing services for a fare
- completing jobs or errands for payment
- renting out a room or a whole house or unit
- renting out your vehicle or a car parking space
Your tax obligations associated with each will vary depending on your activity, and in many cases be additional to what you already do as a small business owner. Some things to consider include:
- declaring your income in your tax return
- what income tax deductions and GST credits you can claim for your expenses related to earning your income and what you can’t claim because of personal use
- how all of your sharing economy earnings added together affect your income tax and GST obligations
- keeping records of your income and expenses to meet your tax obligations.
Remember, registered tax agents and BAS agents can help you with tax advice.