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 Legislative Instrument LI 2024/17Taxation Administration (Reporting Exemptions for Electronic Distribution Platform Operators) Determination 2024.
Substantial suppliers on an EDP
A substantial supplier is a supplier that, in relation to a reporting period and an EDP, made a total value of supplies facilitated by that EDP of at least $1,000,000 (including GST).
This provision exempts the operator of an EDP from reporting transactions involving certain types of suppliers. These transactions are exempted because the suppliers are less likely to be sharing economy participants, are generally subject to other regulatory or reporting regimes, and/or are generally likely to be compliant with their tax obligations.
Substantial property suppliers on an EDP
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.
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.
Not connected with Australia
The operator of an EDP is not required to prepare and give a report about a reportable transaction if all the following conditions are met:
- The supplier has provided the operator with one or more addresses, and none of those addresses are within the indirect tax zone.
- The supply was of a service that was not provided within the indirect tax zone.
- The consideration provided to the supplier was not paid to an account held with a financial institution in the indirect tax zone.
- There is no other information available to the operator that indicates the supplier is a resident of Australia.
These transactions are exempt as they are unlikely to have any Australian income tax or GST consequences.
For short-term accommodation or rental of an asset, the asset must be located in Australia. The seller of that asset can be located anywhere in the world. EDPs must not report Australian sellers of foreign assets.
For a physical service or delivery, it must occur in Australia. The seller of the service/delivery can have an overseas address listed with the EDP.
For digital goods (intangibles) and digital services, the service must be provided in Australia or the seller be located in Australia.
Booking or reservation made without payment
The operator of an EDP is not required to prepare and give a report about a reportable transaction if:
- the transaction was a mere booking or reservation for a supply to be made in the future, where
- the consideration for the supply was not specified at the time the booking or reservation was made
- the consideration for the supply will not be provided via the platform, and
- the operator of the platform will not have visibility of whether the supply is made in practice, or whether consideration is provided for the supply.
This exemption ensures that an EDP is only required to report transactions for which they are likely to have complete or accurate data. It also ensures they do not need to report on transactions where they act only as a booking service for the transaction. The exemption strengthens the quality of the data collected under the SERR by ensuring that transactions are not reportable if the EDP:
- does not know whether the supply is actually made
- does not directly facilitate or have visibility of the payment being made to the supplier, and
- does not provide any other assistance in relation to the supply.
For example, the exemption does not apply where the payment for a reportable supply is made through a payment system linked to the EDP operator's platform that it uses to process the payment for the supply at the time of booking.
Scheduled passenger service
The operator of an EDP is not required to prepare and give a report about a reportable transaction if the transaction involved the supply of a scheduled passenger travel service other than a charter service or taxi travel, where the supplier had made at least 10 places for that service available for booking on the platform.
A supply is one of scheduled passenger travel service if:
- it is a passenger travel service (including arranged tours and cruises) that is supplied as a scheduled service on a pre-defined route operated by the supplier
- the price is set by the supplier
- the terms and conditions of the supply are set by the supplier, and
- any member of the public may book passage on it.
A service does not cease to be a scheduled passenger travel service merely because:
- the service itself may be cancelled or rescheduled
- the price may be varied from time to time, or
- boarding may be denied at the time of travel (for example, due to the behaviour of a passenger, weather, or overbooking).
Events and permanent attractions
The operator of an EDP is not required to prepare and give a report about a reportable transaction if the transaction involved the supply of a right to attend or participate in a scheduled event, where the supplier had made at least 200 places for that event available for booking on the platform.
This provides an exemption for a transaction involving the supply of a right to attend or participate in a scheduled event in certain circumstances. The exemption applies to events for which the supplier has made 200 or more places for the event available for booking on the platform.
Under the definition in section 4 of the Legislative Instrument, an event is a scheduled event if it is a one-off or temporary series of events in a particular location. This includes things such as concerts, sporting events and festivals. The operator of an EDP is not required to prepare and give a report about a reportable transaction if:
- the transaction involved the supply of a right to attend or participate in a permanent attraction or experience, where the supplier had made at least 50 places for that attraction or experience available for booking on the platform each day it was open during the reporting period.
This includes things such as theme parks, museums, zoos, skydiving, or driving track day experiences that are offered on an ongoing basis. It does not include one-off or temporary attractions or experiences that are only offered for a limited period of time or on an ad hoc basis. These types of things are scheduled events, as described above.
Traditional asset rental
The operator of an EDP is not required to prepare and give a report about a reportable transaction if:
- the transaction involved the supply of an asset by way of rent or lease, other than real property, where
- the transaction was not for the supply of a specific asset, and
- the supplier had at least 50 assets available for booking on the platform each day during the reporting period.
This exempts transactions involving the rental or lease of assets, other than real property, where:
- the supply was not of a specific asset (that is, the terms of the rental are such that the renter will receive an asset of a particular kind or class rather than a specific asset), and
- the supplier had at least 50 assets available for booking on the platform each day it was open during the reporting period.
Overreporting
Under the SERR, you are only required to report details about payments made to sellers for supplies made through the EDP.
There is a risk that reporters will provide data or records that are in excess of those required for SERR. In these instances, the ATO will work with reporters to ensure that only required and relevant data is provided (noting that it is an offence under tax law to over report or under report).