Sharing Economy Reporting Regime

SERR key dates

The Sharing Economy Reporting Regime (SERR) began from 1 July 2023 for reportable transactions made through an electronic distribution platform (EDP) for the supply of:

• taxi travel
• ride-sourcing
• short-term accommodation (90 consecutive days or less).

The SERR began for transactions made through an EDP for the supply of other services such as asset hire, performing tasks, and food delivery from 1 July 2024.

Why we collect this information

The information collected under the SERR will allow us to:

• increase community confidence in the integrity of the tax and super systems
• identify and educate participants who fail to meet their registration or lodgment obligations and help them comply
• gain insights from the data to help us develop and implement engagement strategies to improve voluntary compliance – including educational or compliance activities
• obtain intelligence to increase our understanding of behaviours and compliance profiles of participants in the sharing economy.

Platforms that must report under SERR

If you operate an EDP you must report certain transactions involving supplies for consideration made through your platform.

An EDP is a service that:

• allows sellers to make supplies available to buyers (for example, booking accommodation or a car ride, or renting out a handbag or lawnmower)
• is delivered via electronic communication.

An EDP can be, but is not limited to:

• a website
• internet portal
• gateway
• application
• online store
• online marketplace.

Platforms are not an EDP if they only provide:

• carriage services that transmit electronic communications
• access to payment systems or payment processing services
• advertising that makes buyers aware of products and links them to a seller's website.

Transactions reportable under SERR

EDP operators must report details about payments made to sellers for supplies made through their EDP that are connected with Australia, including:

• ride-sourcing
• short-term accommodation
• hiring (not selling) of assets.

The following transactions are excluded and are not reportable under the SERR:

• the sale of goods or real property (that is, where the ownership changes)
• financial supplies
• transactions between members of the same income tax consolidated group or multiple entry consolidated group.

For more information, see LCR 2018/2 GST on supplies made through electronic distribution platforms (paragraphs 19 to 47).

Types of supply that must be reported

A supply is made through an EDP if payment and any related discussions, negotiations or other activities are carried out on the platform. For example, if the EDP has a 'click to chat' option or call centre that a buyer uses to make enquiries before purchasing via an online checkout, the supply will still be made through the EDP.

From 1 July 2024, EDPs must report transactions related to the supply of:

• taxi travel and ride-sourcing
• accommodation
• hiring assets, including personal assets such as caravans, clothing, car storage or shared business space
• services including food delivery, professional services, digital services or performing tasks
• intangible assets, such as eBooks, apps or games, software, videos or podcasts
• tips and gratuities (regardless of how they are described including as a gift or donation) given through the EDP in connection with a supply made through the platform.

EDP operators don't need to report details of all supplies made through their EDP. Transactions for supplies that don't need to be reported include:

• where an amount of the payment for the supply must be withheld under Division 12 in Schedule 1 to the Tax Administration Act 1953, for example, for salary and wages
• where the operator and seller are members of the same tax consolidated or multiple entry consolidated group
• the transfer of the title or ownership of goods or real property
• financial supplies, such as financial securities trading
• the sale of vouchers, such as a gift cards, with a specified monetary value that can be redeemed for goods or services
• supplies where the EDP operator is also the supplier (that is, the supplier is not a third-party)
• those completed, including payment being made to the supplier, before the SERR started for that type of supply.

Supplies that are connected with Australia

Only supplies connected with Australia are reportable under the SERR. A supply is connected with Australia if the:

• service or digital good is provided to an end-user in Australia
• seller makes the sale through a business they carry on in Australia
• sale is of a right or option to purchase something that would be connected with Australia
• supply is of real property, such as a supply short-term accommodation, located in Australia.

The residency of the supplier doesn't affect whether the supply is connected with Australia. The supplier doesn't have to be in Australia for their supplies to be connected with Australia.

Examples of supplies that are connected with Australia include:

• hiring an asset that is located in Australia, such as a car
• providing accommodation that is located in Australia, but not accommodation located outside Australia
• food delivery service in Australia.
• a podcast recorded by a person with an address within Australia

For more information, see GSTR 2019/1 Goods and services tax: supply of anything other than goods or real property connected with the indirect tax zone (Australia).

Exemptions

Exemptions are in place to clarify which EDPs need to report and what transactions they need to report.

These exemptions include:

• instances where a supply is made through more than one platform
• certain transactions, where the supplier is:
  • a listed entity, wholly owned subsidiary, or government agency
  • a substantial supplier (turning over more than $1 million per annum in that platform)
  • providing a booking service, a scheduled service, or a chartered service with more than 9 seats available
• asset hire where the supply is not of a specific asset, or the supplier has more than 50 listings for the rental or lease of those assets.

For more information, see LI 2024/17 Taxation Administration (Reporting Exemptions for Electronic Distribution Platform Operators) Determination 2024.

Supplies made through multiple EDPs

Where a supply is made through multiple EDPs, the operator of an EDP (the first platform) isn't required to report details about the transaction if:

• the supply is also made through at least one other EDP
• the first platform doesn’t provide payment directly to the supplier
• another EDP operator provides all or part of the payment to the supplier and has a reporting obligation under SERR for that transaction
• the operator of the first platform notifies us in writing on or before the due date for the reporting period in which the supply was reportable.

If you are unsure whether the operator of another EDP has a reporting obligation, you need to seek confirmation from them before you apply this exemption. If you can't get confirmation that another platform has a reporting obligation, you shouldn't rely on this exemption.

Short-term accommodation services via agents or channel managers

If a person acting as an agent for a property owner uses an EDP to supply short-term accommodation services on behalf of the property owner, they are the supplier. The EDP is required to include the agent's details in its SERR report.

When the agent uses software, known as channel management software, to list properties on one or more EDP, the entity that licenses the channel manager software doesn't have a reporting obligation.

Listed entities and wholly-owned subsidiaries

EDP operators don't need to report transactions made through their platform where the supplier is:

• an entity listed on an approved stock exchange
• a wholly owned subsidiary of an entity listed on an approved stock exchange.

Commercial properties providing short-term accommodation

EDP operators don't need to report transactions involving the supply of short-term accommodation for a reporting period if the property is a 'substantial property' in relation to that reporting period.

A property is a substantial property if at least 2,000 transactions were made through their EDP for the property over the 12-month period ending on the last day of the reporting period.

If the property was only listed on the platform for part of the 12 months before the last day of a reporting period, the number of transactions needed to meet the definition of substantial property is proportionally adjusted to reflect the shorter time the property was listed on the platform. This is done by dividing the number of days the property was listed on the platform in the 12 months ending on the last day of the reporting period by 365 then multiplying the result by 2,000.

To calculate the number of transactions made through an EDP for a property, each distinct address is considered a separate property. This means all transactions made in relation to multiple rooms at a single address (such as in a commercial hotel) would be considered to be made in relation to a single property. When there are separate addresses within a building (such as apartments in a complex), each apartment is a separate property. You don't include transactions for the property facilitated by another EDP, or those made directly with the property itself in your calculation.

How to report under SERR

EDP operators can prepare their own report or through third party software. The report must be submitted in the approved form, which is a validly generated XML file.

A report is only considered lodged in the approved form if the form is complete. Failure to properly complete this form may result in an error and rejection of the report. You will need to ensure any errors are resolved before you can re-lodge.

For more information about the approved form, see SERR technical specificationExternal Link.

EDP operators that have an ABN need to lodge their report through Online services for business.

Overseas platform operators without an ABN will need to lodge using an ATO reference number (ARN) via Online services for non-residentsExternal Link. Overseas platform operators that haven't reported before will receive an ARN when they lodge their first report through Online services for non-residents.

We will work with EDP operators and intermediaries to assist with data quality and data reporting.

When to report under SERR

EDP operators must report transactions made through their platform twice a year, for reporting periods:

• 1 July to 31 December – report must be submitted by 31 January of the following year
• 1 January to 30 June – report must be submitted by 31 July of that year.

Which period to report a transaction in

The period you need to report a transaction in depends on when you pay the supplier. You report the transaction in the reporting period in which payment for the supply is made. This is important where the making of the agreement for the supply, supply and payment by the operator of the EDP to the supplier occur in different reporting periods. Where this occurs, the operator of an EDP must report the transaction in the period when it pays the supplier, not the reporting period when the agreement or delivery of the supply occurs.

If part of a supply occurs before the first reporting period

The SERR started on 1 July 2023 for taxi travel, ride-sourcing and short-term accommodation. The SERR started for other industries and reportable transactions on 1 July 2024.

The supply of taxi travel, ride-sourcing or short-term accommodation made through an EDP must be reported (unless an exemption applies) if:

• the booking, the supply and payment by the operator of the EDP to the supplier all occur on or after 1 July 2023
• the booking is made prior to 1 July 2023, however the supply and payment by the operator of the EDP to the supplier occur on or after 1 July 2023
• the booking and the supply occur before 1 July 2023 but the payment by the operator of the EDP to the supplier is made on or after 1 July 2023.

For other industries and types of supply covered by the SERR, these will be reportable under the SERR if:

• the booking, the supply and payment by the operator of the EDP to the supplier all occur on or after 1 July 2024
• the booking is made prior to 1 July 2024, however the supply and payment by the operator of the EDP to the supplier are made on or after 1 July 2024
• the booking and the supply are made before 1 July 2024 and payment by the operator of the EDP to the supplier is made on or after 1 July 2024.

What details to report under SERR

EDP operators should include the information in their reports specified in the approved form. EDP operators need to ensure the information reported is accurate. This includes taking reasonable steps to ensure the information provided by sellers is correct and systems are in place to collect the information needed for the report.

The ATO is authorised to collect tax-related information about transactions from EDPs, including information to identify the seller for these transactions. By reporting the information required under taxation third-party reporting, EDPs are not breaching the privacy laws.

Penalties for reporting incorrectly under SERR

EDP operators must have appropriate systems and procedures in place to ensure the information they include in their reports to us is correct. EDPs must take reasonable care to:

• collect the required information from sellers
• ensure seller information is recorded correctly and updated as needed
• correct errors when they are identified.

Penalties may apply for late or incorrect information provided.

For more information on correcting or amending a report, see SERR technical specificationExternal Link.

We will work with you so that you understand your reporting obligations and have access to all the information you need to prepare and lodge your report.

If you have any questions or need support in understanding or meeting your SERR obligations, email sharingeconomyreporting@ato.gov.au.