MEDIA RELEASE

Coalition to improve reporting in the sharing economy

ZS 1/19

Senator The Hon. Zed Seselja
Assistant Minister for Treasury and Finance

Date: Wednesday, 23 January 2019

Assistant Minister for Treasury and Finance, Senator the Hon Zed Seselja today announced the Liberal National Government is delivering better outcomes for Australians by bringing more transparency and fairness into the sharing economy.

“More and more Australians are making use of the greater choice provided by platforms like Uber and AirBnb, leading to significant growth in the sharing economy.  But as it grows, there is a risk that some individuals are not reporting their full income and avoiding the right amount of tax.  The Government is working with the sector on the best way to fix this issue,” Assistant Minister Seselja said.

“We are commited to making sure people pay their fair share of tax. When everyone pays the right amount, it levels playing field for businesses and people working in the sharing economy, creating competition and bringing benefits to consumers,”

“Better tax compliance also means lower tax rates – allowing the Government to deliver the same essential services at a reduced cost to the citizen”

“Treasury is releasing a consultation paper today and is seeking to standardise the reporting format for sharing economy platforms, reducing red tape for sharing economy sellers and assisting the move to pre-filling tax returns in the future.”

“The ATO has worked with a number of organisations in the ride-sharing and accommodation-sharing sectors to report income, and has seen excellent results to date. These reforms will build on the Government’s progress on improving outcomes in the sector.”

“This is another step towards implementing the Government’s response to the Black Economy Taskforce final report which highlighted the harm that the black economy causes to businesses and the community by undermining the integrity of Australia’s tax system and creating an uneven playing field for the majority of small businesses doing the right thing.” Treasury welcomes views on implementing a sharing economy reporting regime.

The consultation paper is available on the Treasury website and submissions close on 22 February 2019.

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