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Subscription services and platforms are no new initiative. For hundreds of years people have subscribed to deliveries from their milkman, and to magazines and newspapers, too.
Flash forward to the 21st century, and subscription services have really exploded, from meal deliveries to movies and TV shows like Netflix and Foxtel, along with content creation platforms like YouTube, OnlyFans, Patreon, Twitch and so forth.
Then, we have the gig economy – which references short-term contracts and freelance assignments, straying from the widely-utilised permanent job model.
Want to know why and how the ATO is tightening the net on the gig economy and what it has to do with subscription platforms?
Read more from the Gold Coast Ecommerce Accountants at Crest, to see how it might affect you.
Recommendations from the ATO
The ATO and industry tax experts alike are urging all Australians with side hustles, or who operate solely in the gig economy, to declare all their income in their tax returns. Why? Because as ATO assistant commissioner Tim Loh states, the ATO has begun cracking down on undeclared income made from secondary work. Loh went on to say:
“We know lots of people have picked up a side hustle during the pandemic.
This has included a wide range of activities such as freelancing, setting up a local market stall or receiving income from subscribers through platforms like Patreon, Twitch or OnlyFans.”
Whether it’s labour, skills or goods you’re providing for a fee, regardless of whether you are using digital or traditional means of conducting business, you need to report this income in your tax return.
If you’re finding your tax return obligations are as clear as mud – don’t neglect it, or not declare it (intentionally or unintentionally). Ask for expert tax assistance from a registered Tax Accountant instead.
What is the ATO doing?
The ATO has, and continues to, expand its data-matching program in recent years.
Providing oversight on:
- Cryptocurrency transactions
- Gig economy jobs
- Share transactions
- Property and rent data
Plus, with new reporting laws set to be introduced, all share economy platforms will be required to report data to the ATO. This includes platforms like Uber, Airbnb, along with food delivery platforms too. This will extend the ATO’s ability to discover previously undisclosed income.
Worry not – by keeping in regular contact with your Gold Coast Tax Accountant and ecommerce expert, you can rest assured your tax compliance is in good hands.
Navigating the gig economy with your accountant
At Crest Accountants, we understand not everyone works a 9-5 with rights to annual, sick and public holiday pay entitlements.
We’re a 21st century, tech-savvy team who come with a dedicated ecommerce accountant division, who are ready and qualified to assist workers in the gig economy and people receiving an income from subscription platforms.
Our Gold Coast Tax Accountants can help you keep informed of changes affecting your industry and personal situation, as well as work with you to manage your finances, motivating you to make the most out of your income and online business venture(s).
Need an Ecommerce Accountant on the Gold Coast?
Crest Accountants have a dedicated ecommerce division, devoted to helping individuals understand their roles and obligations based upon unique, freelance and digital working arrangements.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.
