Tax Implications of Car Sharing (and other "side hustles")!
The car sharing services work by making private cars publicly available in a similar way to other car hire services – it’s like AirBNB for
cars. Combined, DriveMyCar and Car Next Door state that over $13 million has been paid out to car owners renting through the service. The
community or peer to peer rental can be confusing as many people taking part see it as private.
The ATO has taken an interest as some people utilising these services are counting the extra income as a hobby – income from a hobby is not assessable and does not need to be included on your income tax return.
But, the ATO is keen to point out that income from sharing services is not a hobby and needs to be declared. This also applies to other "side hustles" that people may be pushing as hobbies.
The upside is that if you earn income from these activities you might be entitled to claim deductions for things like platform membership fees, availability fees, cleaning fees and car running expenses.
If you're ever unsure about what needs to be declared to the ATO, discuss it with your Tax Agent!
Get in touch with us.