ATO to target revenue from car-sharing

(Australian Associated Press)


People earning income through car-sharing platforms are being targeted by the Australian Tax Office.

Some taxpayers who earn income from services such as Car Next Door, Carhood or DriveMyCar Rentals may not understand the taxation implications, Assistant Commissioner Kath Anderson said on Wednesday.

“No matter how little you earn through car sharing, it is important to include it in your tax return,” she said in a statement.

“It’s no different to anyone else renting out an asset, like a house or a car park. You must declare the income and you cannot avoid tax by calling it a hobby.”

Some deductions, including those that related directly to the renting, hiring or sharing of a personal car, were valid, but accurate records such as receipts must be maintained to back up all claims.

“Whether you are a digital native or an electronic illiterate, it will be difficult to avoid scrutiny as the ATO has sophisticated systems and data to help identify where sharing platforms are being used to generate income,” Ms Anderson said.


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Categories: Tax