As the January 31, 2025 deadline rapidly approaches, digital marketplace platforms—and the thousands of Australians who rely on them to earn extra income—are being reminded of new tax reporting requirements.
These changes are set to impact a wide range of businesses and individuals who use platforms like Uber, Airbnb, Airtasker, and others. From this date onward, platforms must submit their first Sharing Economy Reporting Regime (SERR) report to the Australian Taxation Office (ATO), marking the beginning of a new era in transparency and accountability for transactions within the sharing economy.
The SERR reporting system is part of a broader effort to track and regulate income generated through digital platforms. Initially, the reporting regime was only applicable to major platforms like Uber and Airbnb, which focused on ride-sharing and short-term accommodation services. However, the scope has now been broadened significantly, and all electronic distribution platforms (EDPs) that facilitate transactions for services to Australian customers must comply with the new reporting requirements. This includes activities such as renting out storage space, commissioning digital designs, selling digital products like eBooks, apps, or podcasts, and many more services that connect buyers and sellers online.
Who’s affected?
Starting from July 1, 2024, any platform facilitating these types of transactions must begin reporting to the ATO. These reports, which will be due every six months, will contain essential details about the sellers on these platforms, including their identification information and the total value of transactions made during the reporting period. This reporting requirement will allow the ATO to track earnings across a range of gig economy activities and ensure that individuals are accurately reporting their income, whether it’s from a side hustle or a full-time business.
RSM Australia’s Sam Mohammad, a leading expert on indirect tax practice, highlighted the importance of these changes for both platform operators and their users. “The SERR was introduced by the Australian Government to increase the visibility of sharing economy transactions and bring digital marketplaces in line with higher-risk industries,” Mohammad said. The system is designed to ensure that income earned through digital platforms is fully reported and taxed accordingly, minimizing the risk of tax evasion in the growing gig economy.
The rise of platforms like Uber, Airtasker, and Twitch has been nothing short of remarkable in Australia. With 150,000 locals now driving for Uber and over 60,000 active users on Airtasker, the sharing economy has become an integral part of many people’s income streams. While major platforms are well-known, there are countless smaller, niche platforms emerging across Australia, some even tailored to specific regional or interest-based communities. Regardless of the platform, however, the onus now falls on platform operators to report all transactions made through their services.
While the responsibility to report lies with the platform itself, users must also understand how this new system affects them. If you are using a platform to sell a product or service, such as renting out storage space or selling digital content, it’s important to be aware that the ATO will have access to details of your earnings through these platforms. This means that if you have a side hustle, whether it’s pet sitting, selling e-books, or providing freelance services, the ATO will be tracking your earnings through these reports. Therefore, it’s essential to ensure that your personal income tax filings and GST liabilities align with the income being reported by the platform.
Mohammad emphasized that understanding the new requirements is crucial: “While the onus is on the platform to report, those who participate in the sharing economy need to be well-versed on what this means for them. If the ATO is aware of all transactions made through these platforms, you’ll need to make sure your own income tax and GST filings reflect that income.”
Steps you need to take
To comply with the new rules, platforms must submit reports in a specific XML format to the ATO. For first-time reporters, platforms may also need to register with the ATO to ensure proper tracking and submission of data. Non-compliance with these new reporting obligations can lead to serious consequences, including substantial fines and penalties. For example, if a platform delays submitting its report by over 113 days, it could face a penalty of up to $825,000 depending on the scale of its operations and the amount of global revenue it generates. This highlights the serious financial risks for platforms that fail to comply with the new requirements.
The penalties are significant not only for platform operators but also for businesses and individuals participating in the sharing economy. As the Australian Government continues to take a tougher stance on digital marketplaces, it is essential for all parties involved to stay ahead of the new tax rules to avoid penalties and ensure that they are fully compliant with the SERR.
As the popularity of sharing economy platforms continues to grow, the new SERR reporting requirements are a crucial step in ensuring that digital transactions are transparent, fair, and taxed appropriately. Whether you are a platform operator or a small business owner using these services to supplement your income, it is essential to familiarize yourself with the new rules and ensure that you are ready to meet the January 31, 2025 deadline for the first report submission.
Under the Sharing Economy Reporting Regime (SERR), platforms that facilitate transactions through electronic communication must report certain transactions involving services provided for payment. These platforms, known as Electronic Distribution Platforms (EDPs), can include websites, apps, online stores, and marketplaces.
From 1 July 2024, EDP operators must report transactions for services like:
- Ride-sourcing (e.g., taxi or Uber)
- Accommodation bookings
- Asset hires (e.g., caravans, clothing, storage)
- Services like food delivery, digital services, or professional tasks
- Intangible assets (e.g., eBooks, apps, software, podcasts)
- Tips or gratuities given via the platform
However, transactions that do not require reporting include:
- Salary or wage payments
- Transfers within the same tax group
- Real estate or goods ownership transfers
- Financial securities trading
- Gift card sales
- Supplies where the EDP operator is the supplier
Exemptions apply to certain transactions, such as those involving large suppliers or listed entities, and those made through multiple platforms.
EDP operators must report bi-annually:
- 1 July to 31 December: report due by 31 January.
- 1 January to 30 June: report due by 31 July.
- For more information about the approved form, see SERR technical specificationExternal Link.
- EDP operators that have an ABN need to lodge their report through Online services for business.
- Overseas platform operators without an ABN will need to lodge using an ATO reference number (ARN) via Online services for non-residentsExternal Link. Overseas platform operators that haven’t reported before will receive an ARN when they lodge their first report through Online services for non-residents.
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