Uber, Airbnb face tax reporting from 2022

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Monday’s mid-year budget update included new detail of the third-party reporting regime planned by the Morrison government, part of its efforts to crack down on the $50 billion cash economy – illegal activity estimated to be as large as 3 per cent of GDP every year. Airbnb will be one of the platforms targeted by…

Monday’s mid-year budget update included new detail of the third-party reporting regime planned by the Morrison government, part of its efforts to crack down on the $50 billion cash economy – illegal activity estimated to be as large as 3 per cent of GDP every year.
Airbnb will be one of the platforms targeted by an incoming anti-tax avoidance reporting scheme.Alamy
Under the changes, sharing economy platforms operating online will be required to report identification and income details of participating individuals to the Tax Office, with information on property owners and drivers set to be used in data-matching activities.
Ride-sharing businesses including Uber and short-term accommodation platforms such as Airbnb will be included in the scheme from July 1, 2022, with asset-sharing, food delivery, tasking-based platforms and others added from July 1, 2023.
The mid-year economic and fiscal outlook statement released by Treasurer Josh Frydenberg said the plan was estimated to increase GST payments to the states and territories by $4.1 million over the budget forward estimates period.Advertisement
Airbnb has been a vocal supporter of the plan and welcomed its extension to all sharing platforms.
Derek Nolan, the company’s head of public policy for Australia and New Zealand, said the change would make it easier for people sharing their homes to pay their taxes in Australia.
“While Airbnb already shares considerable information with the ATO, we’ve long maintained that the current difficult-to-navigate tax system is acting as a barrier to everyday Australians using their homes to not only earn extra income, but to bring additional tourist dollars to local small businesses so they can grow jobs,” Mr Nolan said.
“We welcome the Australian government’s move towards implementing a formalised industry-wide data-sharing framework that will simplify this process and make it easier for hosts to meet their obligations.”
Mr Nolan said the change would also help save millions of dollars.
“We stand ready to work with the government on finalising the design and implementation of a new simple, mandatory framework that supports the social and economic benefits the sharing economy gives ordinary Australians.
“In the meantime, we will continue to maximise our co-operation with the ATO under the existing legal rules.”
The reporting rules will cover sharing assets including cars, caravans and parking spaces, as well as personal services, creative professions and even odd-job services like deliveries and furniture assembly.Advertisement
Online selling sites and marketplaces including eBay and Gumtree are not included in the new rules, with crypto-currency exchanges and crowdfunding also excluded.
Tax Institute and UNSW senior tax counsel Bob Deutsch said the changes were not surprising.
“It is all part of a concerted effort by government to ensure that those in the so-called sharing economy fully comply with their taxation obligations,” Professor Deutsch said.
“Data matching is a core element of the ATO’s compliance initiatives and this measure will enable the extension of data matching to the sharing economy.
“Those involved in areas impacted need to ensure full compliance – any previous misguided belief that compliance was unnecessary because detection was unlikely will, in future, be not only misguided but completely foolhardy.” Share .

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