Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Earn

Gig economy workers brace for new tax reporting rules

  • July 12 2021
  • Share

Earn

Gig economy workers brace for new tax reporting rules

By Maja Garaca Djurdjevic
July 12 2021

The government is set to launch a new compulsory reporting scheme, targeted at stopping share economy participants from skipping out on their tax obligations.

Gig economy workers brace for new tax reporting rules

Gig economy workers brace for new tax reporting rules

author image
  • July 12 2021
  • Share

The government is set to launch a new compulsory reporting scheme, targeted at stopping share economy participants from skipping out on their tax obligations.

Gig economy workers brace for new tax reporting rules

Uber drivers and users of Airbnb are among the share economy participants that will soon have to adhere to a new compulsory reporting regime, which will be implemented by applying the taxable payments reporting system (TPRS) to certain transactions undertaken through these platforms. 

Ride-sourcing and short-term accommodation platforms will be first up, with the likes of Uber and Airbnb expected to report information of all transactions to the ATO from 1 July next year.

Asset sharing, food delivery, tasking-based services and other services will be included from 1 July 2023.

Advertisement
Advertisement

The upcoming rules, first announced in late 2019, are expected to apply to “operators of an electronic service”, such as a website, internet portal, app, gateway, store or marketplace, that allow buyers and sellers to transact.

According to the draft legislation, published late last week, transactions relating to the transfer of ownership of real property, such as those facilitated by platforms such as eBay or Gumtree, will be excluded.

Back in 2019, both Airbnb and Uber said they support the plan.

The government has touted the planned rules as the means to bridge a “transparency gap” created by the rapid growth of Australia’s sharing economy and the current inadequacy of the tax reporting system to capture data about transactions that take place there.

Not only is the tax authority’s lack of oversight providing an unfair advantage to share economy participants against those who undertake similar activities and comply with their tax obligations, but the Treasury’s Black Economy Taskforce – established in 2016 – believes the sector is feeding the black economy.

As such, the Taskforce has recommended to government that a compulsory reporting regime be implemented. It argued that in the absence of such a regime, it would be difficult for the ATO to gain information on compliance of sharing economy participants unless targeted audits were used.

The Taskforce also added that formalising reporting requirements would send a clear signal to sharing economy participants that in most cases payments would be taxable.

Gig economy workers brace for new tax reporting rules
Gig economy workers brace for new tax reporting rules
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

About the author

author image
Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

more on this topic

more on this topic

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.