The sharing economy and tax
Sharing services such as AirBnB and Uber are the more evident activities being targeted. Taxpayers who rent out spare rooms in their main residence may lose their entitlement to the full main residence exemption at the sale of their property in the future, for example.
Uber-style ride sourcing may trigger GST
If you're thinking about providing taxi travel for paying passengers akin to the Uber phenomenon, then the ATO has issued a guide which confirms that, for GST purposes, the word 'taxi' has broad meaning of a car made available for public hire that is used to transport passengers for fares.
Talk to an accountant
If you are currently or intending to offer rooms or rides to people in return for payment, it's worth discussing your tax obligations with your accountant. Contact us on 02 9957 4033 for more information. You can also download more information from the ATO Website.
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Disclaimer
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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