Car sharing schemes are becoming more popular and are a way of earning extra money. The Australian Taxation Office (ATO) has outlined some key points to remember if you are renting or hiring your car to others.
These include declaring all income in your tax return, keeping up-to-date records of all income received and keeping records of expenses that can be claimed as deductions.
For those that are registered for GST, you must account for it on the extra income you have earned.
Those that are not registered for GST, and turnover is more than $75,000 per year, you need to register for and report GST.
The plus side for reporting GST is that you can also claim credits on the GST included in the price for the things you purchase for renting or hiring your car.
Date published 13 Sep 2018 | Last updated 31 Jan 2025
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
