Fees paid to you when you provide personal services are taxable income. You may also have to pay goods and services tax (GST).
If you're providing your time, labour or services through a digital platform for a fee you:
- must declare all income you receive in your tax return
- can claim certain expenses as income tax deductions
- need to keep records of the income you earn and of the expenses you can claim as deductions.
There are many types of services that you can provide through a digital platform.
Whatever form hiring takes, what you earn is taxable income and must be declared in your tax return.
You're hired through a digital platform to deliver goods (such as Eat Now, Uber Eats, Deliveroo).
Performing tasks and activities
You may perform tasks and activities through a digital platform such as WeDo, MadPaws, Askatasker, JobList for other people that relate to home or private aspects of daily life.
Often, this involves providing services in a peer-to-peer arrangement. Even though you may only perform these activities occasionally, what you earn is still taxable income and needs to be declared in your tax return.
Providing professional services
You may also provide professional services through a digital platform such as Upwork, Fiverr, Air Tasker, Builderscrack. You might be hired in various ways, such as an employee or independent contractor, peer to peer or as a business providing services.
What it means for you
It does not matter whether you are an employee, independent contractor, carrying on a business, or none of these. Whenever you provide these services in return for a fee, the income you earn is taxable and must be declared in your tax return – even if it's a one-off payment.
If you are running a business, your tax obligations are the same. This applies when you source your work through:
- the sharing economy
- traditional methods, such as tenders, contracts or word-of-mouth.