Earn
Facebook Marketplace flippers are safe from the ATO for now
While the ATO is paying more attention to online shopping sites like Facebook Marketplace and Gumtree, it’s only really interested in the activities of those using the platforms to run a business.
Facebook Marketplace flippers are safe from the ATO for now
While the ATO is paying more attention to online shopping sites like Facebook Marketplace and Gumtree, it’s only really interested in the activities of those using the platforms to run a business.
Money made through selling secondhand goods on platforms isn’t something that everyday consumers think about when it comes to their tax return. However, if you’re a heavy user of platforms like Facebook Marketplace and Gumtree, that might need to change.
Speaking to nestegg, CPA Australia’s tax expert, Elinor Kasapidis, acknowledged that “a growing number of Australian taxpayers earn income from the bartering or sharing economies and must include this in their tax return”.
Ms Kasapidis said that the ATO is “well aware” of such side hustles.
According to her, “The ATO matches data from platforms like eBay and Amazon against individuals’ tax returns, looking for inconsistencies. Under its information-gathering powers, the ATO can also request data from online platforms such as Gumtree or Facebook Marketplace.”
“You don’t need to declare income from activities that are little more than hobbies or not intended to make a profit, but you can’t claim a deduction for them either. So, the hundred bucks you earned from selling your designer handbag on Facebook doesn’t need to be reported.”
However, “this starts to change when you begin selling a lot more of them and make a profit”, she said.
“A critical question is whether you’re running a business. Your digital footprint will show if you’re a regular, high-volume user earning income from online selling,” she said.
Ms Kasapidis also noted that while it is legal for those who earn an income from an online marketplace to receive payments in cash, they do need to report it on their tax return.
While Facebook’s most recent quarterly earnings report didn’t break out specific data for their Australian user base, it did reveal that Facebook Marketplace now boasts 1 billion users and 1 million online shops globally.
Facebook CEO Mark Zuckerberg said, “Commerce has been growing on our services for a while, but it has become a lot more important as the pandemic has accelerated a broader shift towards businesses moving online. In the last year, we’ve seen online storefronts stay open even when physical stores closed. And going forward, online commerce will continue to offer an increasingly personalized and convenient experience.”
RELATED ARTICLES
About the author
About the author
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
