Do you earn extra income as a Uber driver or AirTasker? The gig economy in Australia is booming, especially after the last 2 years of COVID-19 impacted businesses. But don’t forget the ATO!

Common gig economy services in Australia include:

  • Ride sharing services – Uber, Lyft
  • Delivery services – Deliveroo, UberEATS or services where fees are paid for delivery of items
  • Personal services for a fee – for example, where consumers engage an individual to provide creative or professional services like graphic design and web development, or odd jobs like assembling furniture and house painting (Airtasker).

The key to staying out of trouble with the ATO is to keep records. Even if you’ve played everything by the book, if you don’t have documentation to support your position if the ATO asks you questions, you could find yourself stuck with an additional tax bill, plus penalties and interest

Do you need to pay tax on income earned?

Yes, you do.

Each year, you probably earn money from several sources, of which Airtasker/Uber might be one. Others might include income from employment, income from other businesses you run and investment income from things like bank interest, share dividends or rental income from property.

All of this income is taxable. You need to keep a record of all the tasks you do and the amounts you earn from each of those tasks. That income needs to be disclosed as business income on your tax return and you need to record the gross amount that customers pay you, not the net amount you receive after Airtasker or Uber etc has taken out its fees and charges.

What deductions can you claim?

All expenses that are incurred while you are working in the gig economy can be claimed, but you should consult with your accountant to clarify which expenses are deductible. Your business deductions include a portion of the following. The example below relates to AirTasker work.

Deductions include:

  • Commissions or fees paid to Airtasker
  • Costs of traveling to and from an Airtasker job and between jobs including
    • Parking
    • Fuel
    • Public Transport
    • Flights and accommodation if the job is interstate
  • Safety equipment (such as hi-vis vests)
  • Work-related clothing such as overalls and work boots
  • Sunglasses if you work outside
  • Insurance
  • Tax agent/accountants fee
  • Bank fees (if you maintain a separate account for your business)

Costs of running a home office if your business is operated from home

There are some things that you cannot claim for:

  • Fines (parking, speeding, etc)
  • Clothing other than safety clothing
  • Meals or drinks, etc purchased whilst on the job

How can we help?

If you have any questions or would like further information about small business bookkeeping, please feel free to give our office on 08 9221 5522 or via email – , or arrange a time for a meeting so we can discuss your requirements in more detail.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

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