
In recent years, the sharing economy has revolutionised how we work, earn, and connect. Whether you’re a massage therapist booking clients through platforms like Blys or a rideshare driver hustling on the side, the digital age has brought incredible opportunities. But with opportunity comes responsibility, and staying on top of your tax obligations just got a bit more streamlined (and mandatory).
Let’s break down the Sharing Economy Reporting Regime (SERR), what it means for service providers like you, and how these changes will impact your financial reporting.
What Is The Sharing Economy Reporting Regime (SERR)?
The Australian Taxation Office (ATO) introduced the Sharing Economy Reporting Regime (SERR) to make sure income earned through sharing economy platforms is properly reported. Think of it as the ATO’s way of ensuring fairness in a rapidly growing digital economy.
From 1 July 2024, electronic distribution platforms are legally required to report your earnings directly to the ATO. This means what you earn through these platforms will be automatically visible to the tax office.
Who Does It Affect?
If you’re providing services or renting out assets through a sharing economy platform, this applies to you. Key industries affected include:
- Personal services: Massage therapy, beauty, wellness, tutoring, etc.
- Ride-sourcing and delivery services: Uber, Didi, DoorDash, and others.
- Short-term accommodation: Airbnb, Stayz, and similar platforms.
- Freelancing and other services: Airtasker, Fiverr, Upwork.
Why Was The SERR Introduced?
Australia’s sharing economy is thriving, but its rapid growth has created gaps in tax compliance and transparency. The SERR was designed to close these gaps by:
- Ensuring fair competition by holding all service providers accountable for tax obligations.
- Providing the ATO with clear visibility into the income generated on digital platforms.
- Making tax reporting more streamlined and accurate for everyone involved.
What Does This Mean For You As A Blys Therapist?
If you’re a therapist offering services through Blys, here’s how this impacts you:
- Income Reporting: From July 2024, Blys will report all transactions completed through the platform to the ATO. This includes details such as the income you’ve earned, your ABN, and other transaction data. However, as a sole trader, it is your responsibility to make sure that all your income is declared accurately.
- ATO Visibility: The ATO will have a record of all transactions occurring on the Blys platform. While it doesn’t change how much tax you owe, it ensures you’re accurately reporting all income in your tax return.
- No Impact on Rates: The SERR doesn’t affect your pay rates, fees, or tax rates. It’s purely about income transparency and compliance.
What Information Will Platforms Like Blys Report?
Under the SERR, Blys and other platforms must report:
- Transactions: Every service provided through the platform that ends in payment.
- Personal and Business Details: Name, date of birth, address, email, phone, ABN, and bank details.
This information will help the ATO ensure income is being declared correctly across the board.
What Do You Need to Do?
To help us in this transition, please make sure that these details are accurate and up to date in your Blys account:
- Personal details: Name and date of birth.
- Contact details: Address, email, and phone number.
- Business details: ABN and trading name.
- Financial identifiers: Bank account details.
The Bigger Picture
While the Sharing Economy Reporting Regime may feel like more oversight, it also brings benefits. Transparent reporting helps you avoid accidental non-compliance, ensures fair contribution to public services, and makes tax time less stressful.
At Blys, we’re committed to making your experience as a therapist seamless, so you can focus on delivering top-notch services to your clients. If you have any questions about these changes or need assistance updating your details, our Support Team is here to help. Kindly send an email to hello@getblys.com, or call us on +61 483 922 668.
You can read more about the SERR on the ATO website.