Starting a new business can be exciting but there are expenses associated with setting it up. The good news is that you are now entitled to claim certain deductions this year instead of having to spread the deductions over five years.
This applies to the following costs you may have had when setting up your business:
- Professional, legal and accounting advice
- Australian government fees and charges.
What is the sharing economy?
The sharing economy connects buyers and sellers, usually through an app or a website. Sometimes sellers may bid against other sellers to win a job.
For example, you may be:
- providing skilled or trade services, such as creating a website
- completing odd jobs
- ride-sourcing – transporting passengers for a fare
- renting out a room, house or parking space.
What do you have to do?
You’ll have different obligations depending on what you’re doing. Some things to consider are:
- If you’re providing goods or services for a fee, and it’s not a hobby, it’s assessable income. If you’re registered for GST through your current business, account for GST through your existing ABN and GST registration.
- If you’re providing ride-sourcing services, you’ll need to charge and account for GST, regardless of your turnover.
- If you’re renting out your main residence, you don’t need to pay GST but you’ll need to include this rental income in your return.