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Tax and the Sharing Economy

Background

The Board of Taxation (the Board) conducted a self-initiated review to consider issues surrounding tax related to the sharing economy. In particular, the Board focussed on two main areas:

  1. Looking at the issues surrounding at what point sharing economy activities transition from a ‘hobby’ to a business; and
  2. Taking a holistic look at the current income tax system to consider if it adequately addresses existing and potential future sharing economy enterprises.

This report makes recommendations to Government on modifications that can be made to simplify and improve tax compliance within the sharing economy.

Subsequent to the Board commencing its review, the Government announced the set-up and terms of reference of the Black Economy Taskforce (the ‘Taskforce’). In conducting this review, the Board has co-ordinated with the Taskforce to ensure that any overlaps are managed effectively. The Government released the Taskforce’s final report which can be found on the Treasury website, and the Government’s response to that report can be found on the Treasury website.

Working Group

The Board appointed a Working Group to examine the topic and form recommendations. This Working Group was chaired by Board member Neville Mitchell with assistance from Board member Peggy Lau Flux.

The Working Group also included:

Board Report

The Board completed its report of Tax and the Sharing Economy in July 2017

Further information

For further information about the Board’s work on tax and the sharing economy, please contact the Board of Taxation Secretariat at taxboard@treasury.gov.au or 02 6263 4366. 

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