GST and the enterprise of renting, hiring or sharing your car, caravan or RV
f you rent, hire or share your car, caravan or recreational vehicle (RV) through a sharing economy platform, you:
- must declare the income in your tax return
- may need to pay goods and services tax (GST) on the amounts you earn
- may be entitled to claim expenses as income tax deductions
- may be able to claim GST credits
- need to keep records of your income and expenses.
If you are carrying on an enterprise of renting, hiring or sharing your car, caravan or RV sharing and are:
- already registered for GST for another enterprise (for example, ride-sourcing), then you must pay GST on the income you earn from renting, hiring or sharing your car, caravan or RV
- not registered for GST but your expected turnover from all of your enterprises is $75,000 or more per year, you need to get an Australian business number (ABN), register for GST and pay GST on your earnings.
If you pay and report GST, you can claim GST credits for the GST included in the price for things you purchase for renting, hiring or sharing your car, caravan or RV.
You can claim certain expenses providing:
- the expenses directly relate to renting, hiring or sharing your car, caravan or RV
- you apportion expenses between personal and income producing use
- you keep records, such as receipts, to back up your claims.
The type of expenses and the method for claiming them differ between car sharing and caravan and RV sharing so call Flor-Hanly Accountants in Mackay on 07 4963 4800 to clarify your tax position and reporting requirements.