As part of its focus on sharing activities, the Australian Taxation Office (ATO) on Wednesday announced it will be turning its attention to anyone earning income through car sharing platforms, in a bid to make sure they stay on the right side of the tax law.
“Car sharing services are growing in popularity and we have noticed that while some taxpayers are excited about the extra income, they might not understand the taxation implications,” the Australian Taxation Office on Wednesday said in a media alert.
In addition, Assistant Commissioner Kath Anderson discusses in a television grab ATO’s focus on car sharing platforms.
“If you are sharing your car through platforms…, you need to be aware that the tax treatment is no different to renting out any other type of asset.
“You must declare the income and you can’t avoid tax by calling it a hobby.
“The good news is that if you rent out your vehicle, you are probably entitled to claim some deductions. This includes expenses like platform membership fees, availability fees, cleaning fees and car running expenses.
“But you can only claim the portion of your expenses that is directly related to earning the rental income.
“If you are planning on claiming deductions, make sure you follow the three golden rules:
“only claim expenses that you paid for yourself, that are directly related to earning your income
if there a mixture of business and personal use, you can only claim the business portion and make sure you have a record to prove your claim.”