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16
Mar

Sharing Economy and what things to consider

A sharing economy is a marketplace that connects demand and supply. It is an umbrella term with a range of meanings. Moreover, it is an economic model that allows individuals to borrow or hire assets owned by someone else. Like - Someone is renting out a room or a whole house or unit for a short-time basis.

 

It is also referred to as collaborative consumption that usually connects buyers and sellers via multiple Apps or website. Different types of sharing economy like- Uber, Airbnb, Zoom2U, Mad Paws etc. are becoming more popular day by day among Australian people.

To involve in a sharing economy one must consider the following things-

  • If you are carrying on an enterprise you need to register for GST and under GST law you need an ABN;
  • You need to account for GST on the full amount of every fare regardless of how much you earn;
  • You need to consider whether the price of the goods or services you provide includes GST or not;
  • You need to declare all the income earned from providing ride-sourcing services;
  • You need to consider the impact of your sharing economy activities for your GST and income tax obligations;
  • The business should be built on distributed marketplaces;
  • The customers on the demand side of the platforms should be benefited from the ability to get goods and services.

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