Sharing Economy And Tax: A Guide For Airtasker Members

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We’ve worked alongside H&R Block to provide you, our Airtasker Members, with the most up to date information about tax and how it will affect you.

Last year the Australian Tax Office (ATO) made an announcement outlining tax laws which apply to ‘regular’ income streams, also apply to peer-to-peer and collaborative consumption facilitators. Meaning that both income tax and GST could apply to Airtaskers.

Here at Airtasker, we think it’s great that the sharing economy is being validated however we also understand that there can be some confusion. Here’s what you need to know about tax when earning money via Airtasker.

How does this affect the Airtasker Community?

Income Tax

It’s great to see that you’re earning more on Airtasker but it’s important not to forget about tax on assessable income. The good news here is that you can claim any expenses which you incur in generating your Airtasker income are deductible.

To find our what deductions you can claim, read the Airtasker Workers Guide to Income Tax

Record-keeping

Keeping a record of the tasks you’ve completed and also the deductions is really important in case the ATO has any questions for you. H&R Block have put together exactly what you need to keep track of in this guide to Record-keeping for Airtasker Workers.

GST

Airtaskers who earn money via Airtasker will have to register for GST if they earn over $75,000 a year. We’ve got an in-depth dedicated article about GST for Airtasker Workers put together by H&R Block on our Help Centre.

Here’s a quick summary:

The Breakdown: Do you need to register for GST?

  • If your annual turnover is under $75,000? No
  • If your annual turnover is $75,000 or more? Yes
  • If you have another enterprise with under $75,000, but a combined turnover over $75,000? Yes

If you are required to apply for GST and are an enterprise* you’ll have to:

  • Charge GST when you make a taxable supply
  • Claim any input tax credits you’re entitled to
  • Lodge an activity statement and remit any net GST from your activities.

If you receive money for a task whereby you’re required to make something, you can check with the ATO as to whether you need to register for GST.

Already registered for GST? Your Airtasker income should be included.

In Summary
If you earn less than $75,000 a year you will not need to register for GST. However as the money earned via Airtasker is an income, it needs to be included on your tax return. You can also claim a deduction for the fees that Airtasker has charged you.

*If you’re regularly completing tasks and earning money, this is an enterprise – even if it’s not a business. There’s plenty information on the ATO website for businesses and enterprises

If you still need to complete tax return or need any assistance, our friends at H&R Block have put together a special offer just for our Airtasker members. You’ll just need to print the image below and visit your nearest H&R Block location.

H&R block Airtasker Special Offer

Comments

  1. Rosemary Ainley says

    Thanks for being so pro-active and sharing this information with us in such a clear manner 🙂

  2. Anita Kazmierczak says

    If earning under $10k, wouldn’t you use the ATO’s “Statement by Supplier” or “hobby” form? This activity wld be considered a “hobby” if part time?

  3. Katie says

    Hi Jason, At this stage it’s the Airtasker members responsibility to report all income earned via Airtasker to the ATO. However if the ATO requests information we would have to work with them on that, we would of course keep everyone updated should that occur. Cheers, The Airtasker Team

  4. Cesar Moreno says

    Hi guys. relevant information to share. Thanks!

    Question: Will Airtasker provide summary of income and fees charged to the major “runners”? .As Artasker grows ATO will need do a cross check between income in both sides …. Eventually Airtasker will be solicited by ATO to retain taxes to high income runners increasing overhead costs …just keep this in mind guys …

  5. James Angley says

    Suggesting “ask your accountant” seems like a game of passing the buck. Airtasker should provide clear guidance for all situations rather than issuing the blanket statement “It’s been expected that all Airtasker members claim tax on any assessable income.”

    If I hire an Airtasker and want to claim that as an expense on my tax return, but they haven’t provided an ABN, what am I supposed to do? How is it that I am now in the wrong?? I have already asked an Airtasker who completed a task for me to fill out a “statement by supplier” form (but am still waiting to hear back from them), based on the following from the ATO:

    An individual or a business that supplies goods or services can only complete a Statement by a supplier form if one or more of the following applies:
    – the payment does not exceed $75, excluding any goods and services tax (GST)

    Source:
    https://www.ato.gov.au/Forms/Statement-by-a-supplier-not-quoting-an-ABN/

  6. simon says

    Puts runners who have a second job over $75,000 at a disadvantage because they have to charge not only GST but allow for income tax at a high threshold in their bids.

    Is that right?

  7. Brett J says

    Dear Sir/Ma’am,

    For the information and edification of the Airtasker community, I reproduce here an excerpt from an exchange earlier this evening, about which Alex G took exception. I believe this is entirely self explanatory, and pertinent to this thread…

    [QUOTE]

    Alex,

    Whilst ostensibly my comments were addressed to you, they are directed not only to you, but to all others who might read this also. I make no apology for my opinion, but I will offer you some of the reasoning I apply.

    Financial breakdown of this job appears to me as follows:

    $300.00 (Airtasker Headline Gross Figure)
    – $45.00 (being 15% Airtasker Fee)
    =$255.00 (Work bidder Gross Figure)
    – $23.18 (being GST to ATO)
    – $69.55 (being PAYG to ATO)
    =$162.27 (Work bidder NETT)

    Then of course, from your $162.27 you need to budget for (amongst other things):

    Contractors License;
    Public Liability Insurance;
    Personal Insurances (such as Income Protection/Health/Workers Comp);
    All vehicle (and associated) costs;
    All trade tools, equipment (and associated) costs;
    All general business tools, equipment (and associated) costs;
    Professional Association memberships;
    Ongoing Professional Training/Development…..

    Obviously the foregoing list is not exhaustive. You will likely also want to be able to afford personal drawings from your business! Certainly that has been the case with every single legitimate business person I have ever encountered. This brings me neatly to the point I had been trying to make with my earlier posts:
    Anyone who takes shortcuts in the quality of their materials and workmanship, and/or undercuts on price to the point the costs of legitimate business cannot be fairly met, actually does everyone a disservice.

    Brett.

    P.S. In light of the foregoing, you might ask yourself who really ought be feeling offended!

    [UNQUOTE]

    Many Airtaskers appear to be quite unrealistic in their expectations, and it might further appear people are acting unlawfully. Surely everyone is acutely aware the uncertainty surrounding UBER. How many innocent parties business affairs might be seriously inconvenienced (or even harmed) by ATO/ASIC/ACCC scrutiny prompted by unscrupulous (or perhaps naïve) behavior of a few members.

    I would be most interested to hear some constructive discussion and feedback on the matters I have raised.

    Sincerely,

    Brett Johnson

  8. Hannah says

    Hi Katie,

    Two quick question.

    Do we report the net income or gross before airtasker fee? And can we claim travelling expenses for running the task?

    Thank you

  9. Elizabeth says

    Where is the TAX INVOICE from Air Tasker to me for the service fee.

    Normally there is a requirement for an RCTI. Air tasker needs to invoice the buyer or RCTI the seller. I have done both and received neither.

    Thanks

  10. Elizabeth says

    Where is my TAX INVOICE from Airtasker? As a buyer and seller I require either a Tax Invoice or a RCTI? Please advise what Airtasker is providing in terms of invoices and summary of fees, taken and paid. You are turning over significant sums of other peoples money, these very basic requirements should be met.

    Thank you Elizabeth

  11. D says

    What does this (possible typo) mean?

    “Already registered for GST? Make sure you Airtasker income should be included.”

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