In Short
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The Sharing Economy Reporting Regime (SERR) requires platforms like Uber, Airbnb and others to report seller transactions to the ATO.
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Starting 1 July 2023, ride-sharing and accommodation platforms must collect and report certain information; from 1 July 2024, other platforms, including those for asset hire and food delivery, must follow suit.
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Information reported includes personal, business, and financial details of sellers.
Tips for Businesses
If your platform is involved in the sharing economy, ensure compliance with the SERR by collecting the required seller information. Be prepared to report transaction details by the relevant deadlines and understand the criteria for when a transaction is reportable. Consult with a tax professional to stay up to date with reporting obligations.
Table of Contents
If you request an Uber, then book an Airbnb or hire services from an Airtasker, you are participating in the “sharing economy”. The sharing economy connects customers to goods and services through a digital platform. However, the Australian Taxation Office (ATO) has found prevalent underreporting of income derived in the sharing economy. In response, the ATO released the Sharing Economy Reporting Regime (SERR) to address this issue. In a staged approach, the ATO required Electronic Distribution Platforms (EDP) to comply with the SERR. This article will explain the SERR, who it affects, and steps your business can take to ensure it complies with these rules.
What is the Sharing Economy Reporting Regime?
In recent years, the ATO has become keenly interested in the Australian sharing economy. This is mainly due to the difficulty distinguishing whether a sharing economy worker is an employee or contractor and the increased complexity of tax implications.
Moreover, the ATO recently announced that employment tax obligations, such as superannuation, pay-as-you-go (PAYG) withholding and fringe benefits tax, are key focus areas. In response to the rising cases, the ATO introduced the SERR to address the underreporting of income derived in the sharing economy.
The ATO adopted a staged approach outlining when EDPs had to comply with the SERR:
- starting on 1 July 2023, ride-sharing platforms (such as Uber and DiDi) and short-term accommodation providers (such as Airbnb) had to collect certain information about seller transactions; and
- from 1 July 2024, platforms that facilitate hiring assets (such as Uber Carshare), performing tasks (such as Airtasker) and food delivery (such as Menulog) will have to collect the same information about seller transactions. Other specific transactions the ATO has listed as reportable are purchasing intangible assets (such as eBooks, games, apps, videos, podcasts or other software) and tips and gratuities (such as tipping a bartender).
The information about seller transactions that a sharing economy platform will have to record and report include the seller’s:
- personal information, such as their first and surname and date of birth;
- address, email address and phone number;
- business information, such as their ABN and trading name;
- financial information, such as their bank details; and
- account details include account name, identification number, registration date, store type, seller status, IP address, number of annual sales transactions and the value of yearly/monthly sales transactions.
What Platforms Must Report Under the SERR?
Applying to all EDPs, the SERR defines an EDP as a service that allows sellers to make supplies available to buyers through electronic communication. Examples include:
- online stores;
- marketplaces; and
- apps.
Platforms will not be considered EDPs if they only provide:
- carriage services for electronic communications;
- access to payment processing services; or
- advertisements of other merchants’ goods or services, with a link taking the customer to the merchant’s website.
Likewise, a platform is not considered an EDP if it only facilitates an individual meeting one or some requirements, with the remainder of the transaction occurring outside the platform. For example, suppose a customer uses a website to request plumbing services, and various plumbers bid directly on the customer for that job. Once the customer accepts a bid, the transaction proceeds off the platform. In this case, the platform would not be an EDP.
Continue reading this article below the form2025 Update: Draft Legislative Instrument 2024/D9
The ATO has recently released a draft legislative instrument titled the Taxation Administration (Reporting Exemptions for Electronic Distribution Platform Operators) Determination 2025 (LI 2024/D9). LI 2024/D9 is currently open for comment and, if passed, would take effect from 1 July 2025.
There are two broad classes of exemptions: exemptions for specific suppliers and for specific supplies.
Exempt Suppliers
The operator of an EDP will not have to give a report about a reportable transaction on the EDP if the supplier is:
- a listed entity or a wholly owned subsidiary of a listed entity;
- a government department, agency or authority (however described and at any level of government), or an entity wholly-owned by a government;
- a “substantial supplier”, being a supplier whose supplies on that EDP in a reporting period had a value of at least $1 million (including GST), or a prorated amount if the supplier started using the EDP partway through a reporting period; or
- because of the operation of the GST law, the operator of an EDP is treated as the supplier. This is usually where the supply is a digital product (such as an app) made through an enterprise carried on outside Australia, and the end user of the supply is an Australian consumer.
Exempt Supplies
LI 2024/D9 exempts the following transactions from reporting requirements:
- Substantial Property Transactions: Where a supplier makes at least 2,000 transactions in respect of a piece of real property on the EDP in the reporting period, or a prorated amount if the supplier begins using the EDP in the reporting period, there is an exemption.
- Non-Australian Supplies: Another exemption is where the supplier’s address, service location and payment are all outside Australia.
- Bookings or Reservations: This applies where the transaction is merely a booking or reservation for a supply in the future and the price was not known at the time. In this case, consideration will not be provided on the EDP and the EDP will not have oversight on the supply being made and/or consideration being paid.
- Scheduled Passenger Travel Services: This applies where the supply is a scheduled service for a pre-defined route that may be booked by any member of the public. Suppliers must make at least 10 places available on the EDP to be exempt. This does not include taxi travel or chartered services.
- Scheduled Events: This applies where the supply is a right to attend the event, such as a concert ticket and any member of the public can book. Suppliers must make at least 200 places available on the EDP to be exempt.
- Permanent Attractions or Experiences: Where the supply is a right to attend (e.g. a ticket to enter a theme park) and any member of the public can book, there is an exemption. Suppliers must make at least 50 places available for booking on the EDP for each day the attraction is open during the reporting period to be exempt.
How Does an EDP Report Under the SERR?
An EDP operator must report transactions when a seller uses the EDP to provide a supply connected with Australia and receives payment for it. In this case, payment includes both cash and non-cash consideration. Additionally, a supply is “connected with Australia” if it is provided physically in Australia. The seller makes the supply through a business they carry out in Australia, or the purchaser is an Australian consumer.
Where an EDP must report, it must lodge by the relevant due date for that reporting period, such as:
- 1 July to 31 December – the report is due by 31 January the following year; and
- 1 January to 30 June – the report is due by 31 July of that year.
Relevantly, a transaction must be reported when payment is made to the supplier for the transaction, not necessarily when the transaction was initiated. EDPs should understand this to ensure amounts are reported correctly, particularly if the transaction may straddle two reporting periods.
EDPs must lodge their completed reports by the due date via:
- online services for business for EDP operators that have an ABN; or
- online services for non-residents and overseas platform operators without an ABN.
The ATO has published resources on its Software Developers Webpage to help EDPs comply with their reporting requirements under the SERR.
Failure to report appropriately or delays in submitting reports can attract penalties for the EDP.
Whether you’re a small business owner or the Chief Financial Officer of an ASX-listed company, one fact remains: your customers need to pay you.
This manual aims to help business owners, financial controllers and credit managers best manage and recover their debt.
Are There Any Other Tax Considerations Involved in Operating an EDP?
EDP operators should always consider how the platform has been structured in respect of:
- who they provide services to;
- who provides the services;
- how money flows through the platform; and
- how the money is characterised.
The platform’s structure can have several tax implications, such as:
- whether certain users are considered employees or contractors of the platform. This includes imposing superannuation, PAYG withholding and payroll tax obligations on the platform;
- whether certain payments are income for the platform or its users; and
- how GST is calculated.
Key Takeaways
The ATO’s introduction of the SERR aims to address the issues of sellers in the sharing economy failing to report income derived from these activities. The broad definition of an EDP means that this regime will capture many businesses structured as online marketplaces. These new reporting obligations could be onerous for businesses. Thus, EDPs should use the resources published by the ATO to ensure their systems can collect the required data. Doing so will allow you to comply with your reporting requirements under the SERR or otherwise be at risk of penalties.
If you need help with your business structure, our experienced taxation lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
The sharing economy connects customers to goods or service providers through a digital platform, such as an app or website.
EDPs must report seller details like name, address, business info, bank details, and transaction records.
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