Gig economy workers may receive a surprise from the Australian Taxation Office (ATO) this year, with new rules impacting secondary sources of income.
CPA Australia Tax Lead Jenny Wong said income generated from side-hustles had become a major focus for ATO, with digital service platforms now legally required to report the income earned by their users under the Sharing Economy Reporting Regime (SERR).
Ms Wong said anyone who had earned money through platforms such as UberEats, Airtasker, YouTube and OnlyFans and did not report and pay tax on these amounts risked an amended return, extra tax bill and possible penalties.
“The Sharing Economy Reporting Regime is expanding this financial year, meaning the ATO will be aware of any income you have received through these types of gig economy platforms,” she said.
“This brings them into line with other third parties that already provide the ATO with the data it uses to pre-fill tax returns, including banks.”
Ms Wong said until this year, individuals had been required to self-declare the income from their side-hustles.
“Now nothing will go under the radar. If you deliver food with DoorDash, work some casual jobs through Airtasker, or make content for Patreon, YouTube or OnlyFans, these sites are now reporting your earnings to the tax office.
“These rules apply to a broad range of services, not just the most well-known. If you use a website to rent out a car parking space or your designer handbag, this income will be recorded, and you’ll need to pay tax.”
She said individuals who had enjoyed a strong year of earning activity through sites such as YouTube and OnlyFans could be in for the biggest shock.
Ms Wong said influencers specifically needed to be aware of their obligations to declare any gifts and gratuities received as a form of payment.
“You must pay tax on income you earn above the tax-free threshold of $18,200,” she said.
“So, if you’ve had a successful year earning money through advertising revenue and streaming subscriptions, as well as through gifts and gratuities, the ATO will be expecting you to cough up. This even includes free cars, holidays, clothes and anything else you’re lucky enough to receive as a form of payment.”
