Sharing economy reporting regime commences soon

As a part of the Federal Government’s strategy to combat the tax compliance risks posed by

the sharing economy, it has passed into law new requirements for operators of electronic

distribution platforms to provide information to the Australian Taxation Office on

transactions made through their platforms.

An “electronic distribution platform” is one that delivers services through electronic

communication (i.e. over the internet, including through applications, websites or other

software) and allows entities to make supplies available to end-user consumers through the

platform. A service isn’t considered an electronic distribution platform if it only advertises or

creates awareness of possible supplies online, operates as a payment platform or serves a

communication function.

Examples of sharing economy electronic platform operators include Uber, Airbnb, Car Next

Door, Menulog, Airtasker and Freelancer.

The new reporting regime applies to platform operators rather than to individuals who use

their sites or apps, but if you’re part of the sharing economy it’s still important to give the

ATO the right information. If you rent out your home for short stay accommodation, work as

a delivery driver or take on side jobs as a freelancer, we can help you keep your tax affairs in

order.

Electronic platform operators will soon be required to regularly provide transaction

information to the ATO through the Taxable Payments Reporting System (TPRS). The

information obtained will be used in ATO data-matching to help identify entities that may not

be meeting their tax obligations.

Acctweb

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