The ATO has signalled a compliance focus on tax affairs of those who work in the sharing economy.

With thousands of Australians now working through UBER AirBnb and others it is important to understand the tax laws and how they apply to the sharing economy.

1.Income must be declared on your tax return.

2.Claim deductions for any work related expenses.

You can claim deductions for expenses you incur as part of your work in the sharing economy:

-If you are an Uber driver, most of your expenses are likely to focus on the costs of purchasing and running your vehicle. You need to keep a log book for 12 weeks to establish a business use percentage. You claim costs for Fuel ,Services Car cleaning etc so keep receipts for expenses.

-If you rent out a room through Airbnb you can claim an appropriate proportion of any property related expenses such as rates, cleaning, heating and lighting, water and cable TV subscriptions.

– If you are an Airtasker worker, you can claim the cost of any tools or equipment you use in your work as well as the cost of travelling between jobs.

3.Fees or Commissions paid will be tax deductible

4.As a small business you have access to tax concessions.

  • For tax purposes you will regarded as self employed meaning you have access to tax concessions including the $20,000 write off for capital assets.

5.Claim Office Expenses

  • If you run the admin side of your business from home, don’t forget to claim the appropriate proportion of home office expenses, such as internet fees. Mobile phone bills etc.

6.Only claim the business related element where there is a proportion of business and private use.

7.Capital Gains Tax Exemption may be lost

  • If you rent out part of your home through Airbnb you might lose part of the CGT exemption which typically applies to your main residence. This means you could have a capital gains tax bill when you sell your house

8.Uber drivers register for GST and claim GST credits

  • If you rent out part of your home through Airbnb you might lose part of the CGT exemption which typically applies to your main residence. This means you could have a capital gains tax bill when you sell your house

9.Airbnb or Airtasker Register for GST if turnover exceeds $75,000

  • If you are Airbnb or Airtasker you only need to register for GST if your turnover exceeds $75,000,

10.Make sure you disclose your income.

  • The ATO has been in contact with all sharing economy service providers so they will have records of your income.