15 Feb 2019
15 February 2019
Reporting for sharing economy platform providers
The Tax Policy and Advocacy team is currently considering preparing a submission in relation to the Sharing Economy Reporting Regime. A consultation paper on the sharing economy was released in January in response to the Black Economy Taskforce Final Report.
There has been significant growth in the sharing economy over recent years. This trend is likely to continue.
There is no universally accepted definition of the sharing economy. Basically, the sharing economy is the sharing of goods and services for a fee usually via an online platform. I find it easier to understand in terms of examples. Most of us will have been involved in the sharing economy in some way. Have you used Uber, Menulog, Airbnb, or Airtasker? If so, welcome to the sharing economy!
The purpose of the current consultation is to seek views on the design of a reporting regime in relation to individuals who receive income from the sharing economy. The Black Economy Taskforce identified a risk that sellers engaged in the sharing economy may be underpaying tax. The purpose of the proposed reporting regime is to deal with this risk.
There needs to be balance between transparency in relation to sharing economy websites and the regulatory burdens that may be imposed by a new reporting regime.
There are specific consultation questions outlined in the consultation paper. We would be interested in hearing about members’ views in relation to a new reporting regime for the sharing economy being introduced.
If you have any comments, please forward them to Tax Policy.
I would like to remind members about The Tax Institute’s survey on the tax proposals being put forward by the Labor party.
The survey covers important election topics, including Labor’s plans in relation to:
- Excess imputation credits – Labor plans to deny refunds for excess imputation credits with effect from 1 July 2019. Recent scenes at the franking credits inquiry meetings demonstrate just how controversial this policy is.
- Negative gearing – Labor plans to limit negative gearing to new housing. The current plan will restrict negative gearing in relation to all investments not just property investments.
- The CGT discount – Labor plans to cut the CGT discount in half from 50% to 25%.
Given the controversial nature of all of these topics, it is particularly important for us to obtain the views of our members. Knowing the views of our members is vital for effective advocacy.
The survey is open until 22 February 2019 and we really would like to hear members’ views.
Thank you to all the members who have completed the survey so far. We hope you can join us at the Institute’s 34th National Convention in March in Hobart to hear the results.
Angie Ananda, FTI