The sharing economy is any economic activity through an online marketplace (also known as a digital platform) such as a website or an app, where people share assets or services for a fee.
If you provide services or assets through an online marketplace for a fee, you need to consider how income tax and goods and services tax (GST) applies to your fees earned.
Popular sharing economy activities include:
- providing ride-sharing (sometimes also known as ride-sourcing) services for a fare, through platforms such as Uber, Zoomy or Ola
- providing short-stay accommodation including renting out a room or a whole house or unit, through platforms such as Airbnb, Bookabach or Holiday Houses
- sharing assets, including cars, caravans/RVs, car parking spaces, storage space or personal belongings, through platforms such as Yourdrive, Mighway, Parkable, MyCarYourRental and Sharedspace
- providing personal services, including creative or professional services like graphic design, creating websites, or odd jobs like deliveries and furniture assembly, through platforms such Pocket Jobs, Fiverr, Air Tasker, WeDo, Askatasker, Deliveroo and Mad Paws. This is sometimes referred to as the 'gig economy'.
The following are not considered to be part of the sharing economy:
- online selling or classifieds, like Trademe, eBay or Carsales
- cryptocurrency exchanges
- peer-to-peer finance or crowdfunding.
You still need to consider how income tax, GST and other obligations may apply to you if you earn income from these other activities.
From 1 January 2024, new income reporting rules for online marketplace operators will affect sellers providing services through them. To find out how these changes will affect you, read our fact sheet - Information reporting for the sharing economy - AD280