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Finance Business Service

Australia provides "sharing economy" tax


Tax on "Mutual economy"

Australian tax organization (ATO) said that they are worrying about people who earns money with sharing economy can't understand that they need to announce this income to them tax declarative.

Assistant Commissioner Graham Whyte said: "sharing economy changed a lot of things we do but the definition of ATO didn't change. In sharing economy buyers and sailors are connected with facilitator who usually work through application or web site."

"If you earns money from casual earning or providing services such as using common tasks, transporting passengers through things like ride-sourcing, or renting a room or house, you need to count this like declare income."

"It's different a little if good you introduce or your activity you acting through sharing economy site or another stage acting like hobby or recreation activity. The amount you paid can not be countable income. You can check this on ATO site for taking some information about how to solve this problem."

Due to Whyte words most of the people who take part in sharing economy will have right to demand deductions if they are declaring income. According to them activities, some taxpayers must register and pay out for goods and service tax.

Whyte added that ATO takes more than 600 million peace’s data from different resources third persons every year. He said "This data permit us collect the whole picture of that taxation income must be. If something isn't all right, he would send a red flag and we will research this question more.

Author: Olena Kutova

senior lawyer of the Finance Business Service company

Сергей Панов
managing partner
Finance Business Service