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.