The Sharing Economy Reporting Regime (SERR) has commenced for the 2023–24 income year. At this stage, only transactions relating to taxi travel and ride sourcing, as well as short-term accommodation, are required to be reported.
From 1 July 2024, the scope of the regime will expand significantly. The SERR will then apply to all other reportable transactions facilitated by electronic distribution platform (EDP) operators, including:
-
hiring of assets, such as personal assets, storage or business space
-
food delivery services
-
professional services and task-based activities
What is an electronic distribution platform (EDP)
Generally, all operators of electronic distribution platforms must report transactions made through their platform.
An EDP is broadly defined as a service that allows sellers to make supplies available to buyers and is delivered through electronic communication, such as:
-
websites
-
online portals or gateways
-
mobile applications
-
online marketplaces or stores
Platforms that are not EDPs
Certain platforms are specifically excluded from being treated as EDPs. These include platforms that only provide:
-
carriage services transmitting electronic communications
-
access to payment systems or payment processing services
-
advertising that promotes products or links customers to a merchant’s website
For example, platforms that merely connect potential customers with service providers, but do not process transactions themselves, are not EDPs. This includes platforms where users post job requests and service providers independently contact customers to negotiate and arrange payment outside the platform. These platforms are not required to report under the SERR.
When reporting is required
If a platform connects a seller, whether an individual or a business, with an end user and the transaction is processed through the platform, it will be captured under the SERR.
EDP operators must report:
-
all transactions where the supply relates to Australia, including external territories
-
all transactions made available to end users where payment or other consideration is received
Transactions that are excluded from reporting
EDP operators are not required to report transactions relating to:
-
the sale of goods
-
the sale of real property where ownership changes
-
financial supplies
-
transactions between entities in the same income tax consolidated group or MEC group
-
transactions where PAYG withholding is required from the payment
Information reported to the ATO
EDP operators are required to report detailed information about sellers using their platform. This includes:
-
full name
-
date of birth
-
ABN, if applicable
-
registered business name and trading name
-
tax identification number
-
address
-
contact phone number and email
-
bank account name, BSB and account number, or international equivalent
-
total payments made to the seller for the reporting period, including GST
-
total fees and commissions charged
-
total GST payable on sales
Additional information for short-term accommodation
For sellers of short-term accommodation, additional details must be reported, including:
-
property address
-
number of nights booked during the reporting period
What this means for taxpayers
While the reporting obligations fall on EDP operators, the regime is expected to significantly impact individual taxpayers and businesses participating in the sharing economy.
The ATO has confirmed that data collected under the SERR will be used for:
-
data matching programs
-
building compliance profiles of sharing economy participants
-
improving ATO intelligence across the sector
This information will be used to support voluntary compliance through education, as well as enforcement action where required.
Key takeaway
Participants in the sharing economy should expect greater transparency and increased ATO scrutiny as the SERR expands from 1 July 2024. Understanding what income is being reported on your behalf and ensuring it is correctly declared in your tax returns will be critical.
If you are unsure how these changes affect you, or if you operate through online platforms, speak to one of our accountants if you have any questions about the changes in tax for 2023.
