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.
A few years ago 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 with Airtasker.
How does this affect the Airtasker Community?
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
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 has put together exactly what you need to keep track of in this guide to Record-keeping for Airtasker Workers.
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.
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 of information on the ATO website for businesses and enterprises.