Australians riding the gig economy wave—whether by delivering meals, creating content online, or renting out their assets—could be in for a shock this tax season.
Australia’s largest accounting body, CPA Australia, has warned that workers with side hustles risk being hit with unexpected tax bills, amended returns, and even penalties if they fail to declare all their income.
The warning comes as the Australian Taxation Office (ATO) rolls out the expanded Sharing Economy Reporting Regime (SERR), which now compels digital platforms to report user earnings directly.
Until now, gig workers were responsible for self-reporting earnings from side gigs. But this year marks a turning point, as platforms such as UberEats, Airtasker, Patreon, YouTube, and OnlyFans are legally required to report users’ income directly to the tax office.
“Until this year, individuals have been required to self-declare the income from their side-hustles. Now nothing will go under the radar. If you deliver food with DoorDash, work some casual jobs through Airtasker, or make content for Patreon, YouTube or OnlyFans, these sites are now reporting your earnings to the tax office,” Wong said.
“These rules apply to a broad range of services, not just the most well-known. If you use a website to rent out a car parking space or your designer handbag, this income will be recorded, and you’ll need to pay tax.”
The regime is already catching some gig workers off guard—especially those who have enjoyed a successful year on digital content platforms. Wong noted that influencers and creators could be most affected, particularly if they’ve received non-cash payments in the form of perks or products.
“You must pay tax on income you earn above the tax-free threshold of $18,200,” she said.
“So, if you’ve had a successful year earning money through advertising revenue and streaming subscriptions, as well as through gifts and gratuities, the ATO will be expecting you to cough up. Yes, this even includes free cars, holidays, clothes and anything else you’re lucky enough to receive as a form of payment.”
“Depending on how much you’ve earned during the year, this could be a significant amount, maybe even tens of thousands of dollars.”
The ATO began collecting platform-reported income data in July 2023, initially focusing on services like Airbnb. But the latest expansion of SERR captures a far broader range of gig economy activities, including freelance work and online content creation.
Wong said the new measures help address a long-standing challenge for the tax office.
“The current level of tax compliance from digital economy users has largely been a mystery,” she said.
“Though people might not consider earnings from digital platforms as income in the same way as their regular job, it is all viewed the same way by the ATO. Chances are that many people have simply not been declaring this income at tax time. That all changes now.”
CPA Australia is urging gig economy participants to take the changes seriously and prepare accordingly. Their top tips include:
- Declare all income, including gifts and gratuities, regardless of the amount or frequency
- Maintain accurate records of both income and work-related expenses
- Understand your obligations, including registering for an ABN or GST if applicable
- Seek professional advice to ensure you’re fully compliant
As for tax deductions, Australians working in the gig economy may be able to claim some work-related expenses—provided they’re directly linked to income earned, not reimbursed, and backed up with proper receipts. These can include:
- Work-from-home expenses such as phone, internet and energy costs
- Travel between work locations
- Motor vehicle expenses like fuel and repairs (with clear records of business use)
- Tools of the trade, such as cameras, lighting or editing software, used exclusively for business
With digital income now firmly in the ATO’s sights, those operating on gig platforms are being urged to declare now—or risk a costly surprise later.
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