If you earn through an App or Platform, the ATO will know – Be Tax Ready

Small businesses using online platforms or digital payment services should be aware of new data-matching rules that make it easier for the Australian Taxation Office (ATO) to identify income that hasn’t been reported. 

Under the Sharing Economy Reporting Regime (SERR), electronic distribution platforms, such as eBay, Amazon, Airbnb and Uber, along with payment facilitators like PayPal and Square, must now report transaction data directly to the ATO. This information is then cross-checked against business tax returns to ensure all income and GST is correctly declared. 

The SERR provides visibility to the ATO on transactions such as online sales, bookings and service payments. Under the reporting requirements electronic distribution platforms must report these payments to the ATO. If a business sells goods through an online marketplace, rents out property through an app, provides services via a gig-economy platform, or receives payments through a merchant facility, those transactions will likely be reported to the ATO. 

The change is designed to create a fairer system by ensuring all businesses pay the right amount of tax. However, it also means that under-reporting or mistakes in tax returns will be easier for the ATO to detect. 

The ATO website provides information to help you determine if your activities are part of the sharing economy and how they may affect your tax and super. Knowing your obligations and carrying out proper record-keeping, will mean you are able to claim the expenses you are entitled to and pay the correct amount of tax.  

The ATO has multiple free online courses for small business owners to learn about their tax obligations, record-keeping requirements, GST, and how to correctly report income. You can access the courses on the ATO’s website. 

The ATO’s Sharing Economy Reporting Regime (SERR) page provides further information on how the regime operates, who needs to report and when.