Income you earn from the sharing economy may not have tax withheld, which means you may have a tax bill when you lodge your return.
You can choose to make a payment, regularly or once off, to go towards a potential tax bill. To make it easier for you to manage your tax, you can make payments at any time and as often as you like.
Any payments made towards your tax before they are due will remain on your account unless you, or your agent, request a refund.
If you have an existing tax debt, prepayments may be used to offset against that debt.
Next step:
Pay as you go instalments
If you're earning (or expecting to earn) more than $4,000 a year from renting out a room, whole house or unit, you can consider entering the pay as you go (PAYG) instalment system voluntarily.
This will stop you getting a large tax bill at the end of the year, and you can pay amounts every three months (quarterly) to help cover any income tax you may need to pay on your sharing economy income.
If you pay too much during the year, you will get the money back when you do your tax return.
If you don’t pay enough during the year, you'll pay the difference when you do your tax return – but it will be less than if you didn’t pay anything at all.
Next step:
Income you earn from the sharing economy may not have tax withheld, which means you might end up with a tax bill.