Aspen Corporate Pty Ltd
New laws target sharing economy platforms
Aspen Corporate • 27 July 2021

New laws target sharing economy platforms

In an attempt to reign in undeclared income, proposed new laws will require platform providers in the sharing economy to report all transactions through their platforms.

 

Traditional employment models have shifted in favour of more flexible options including contracting, self-employment and use of labour hire. Consumers are increasingly paying to 'use' rather than 'own' assets, creating new income opportunities for the owners of assets – like AirBNB. And, the Government believes they are missing out on tax revenues from these payments – income tax from income earned, GST on ride sharing (because the ATO considers all ride sharing a taxi service and as a result GST applies), and capital gains tax on the sale of property used to earn income, etc.

 

While data matching programs have targeted sharing platforms previously, the proposed laws provide a structured and consistent framework to recognise all revenue earned in Australia through these platforms.

 

The laws target electronic platforms capturing those that act as intermediaries between buyers and sellers, to more complex arrangements where the platform operator assumes much of the inherent risk in the transaction between the buyer and the seller, play a quality assurance role, and ensure a seamless experience for the buyer and seller. The laws do not rely on the platform processing payments and will reach to those who use third party payment providers.

 

If implemented, the laws will apply to ride sharing and accommodation services from 1 July 2022, and all other services from 1 July 2023.

by Aspen Corp 26 March 2025
Aspen Corp's 2025-26 Federal Budget Update
Australian girl holding a flag
by Aspen Corp 19 March 2025
Global Google searches for the word “tariffs” spiked dramatically between 30 January and 2 February 2025, a +900% increase to the previous 12 months. We look at what tariffs really mean.
by Domenic Tartaglia 19 March 2025
The Australian Taxation Office (ATO) continues it's focus on proper record-keeping practices for Next 5,000 privately owned and wealthy groups, emphasizing the need for transparency and accuracy in tax reporting.
by Aspen Corp 11 March 2025
The Fringe Benefits Tax (FBT) year ends on 31 March. We’ve outlined the hot spots for employers and employees.
Australian suburban property
by Aspen Corp 11 March 2025
The Government has announced a ban on foreign property purchases until 31 March 2027 to curb foreign “land banking.”
Credit Cards
by Aspen Corp 13 February 2025
If credit card surcharges are banned in other countries, why not Australia? We look at the surcharge debate and the payment system complexity that has brought us to this point.
More posts
Share by: