Australia taxes | Hosts
Information published on this page is general advice only and does not take your individual circumstances into account. We recommend consulting an independent tax professional for advice on how this relates to your unique circumstances.
Your tax obligations as a car sharing host
The income you earn from sharing your car is considered assessable income and must be declared on your tax return. Likewise, expenses you incur can also be claimed as income tax deductions. The ATO has published a series of articles with clear guidance on how you should report your car sharing earnings and expenses in your tax return. We recommend reviewing the following articles
- A guide to the sharing economy and tax
- Tips for declaring income and claiming deductions
Understanding your earnings summary At the end of each financial year, Resortifi releases an earnings summary to help you prepare your tax return. Here are some answers to common questions we receive:
What is included in “Gross earnings”?
Gross earnings include trip earnings, Resortifi fees, host incentives, and host cancellation fees, but don’t include reimbursements. Gross earnings exceed the total paid by Resortifi because Resortifi fees have not been deducted.
What is included in “Resortifi fees”?
Resortifi fees represent the amount Resortifi received from your trip reservations, based on the percentage rate of your chosen protection plan for each trip. Please note payments deposited into your bank account have Resortifi fees already deducted. Resortifi fees may be considered an operating expense or deduction when you report gross earnings as income on your tax filings.
Why do gross earnings matter for my taxes?
Resortifi is required to report hosts’ unadjusted gross sales (what we’re calling “gross earnings”), defined as transactions without adjustments for credits, service fees, reimbursements, or any other amounts. In other words, the gross earnings value is the total amount received for each booking, before being reduced by Resortifi fees, plus any other payment received from Resortifi (i.e. host incentives). So the gross earnings reported in your tax form and yearly summary will exceed the total amount you received from Resortifi.
Why don’t my gross earnings match my earnings chart?
Gross earnings include trip earnings, Resortifi fees, host incentives, and host cancellation fees, but doesn’t include reimbursements. On the other hand, your earnings chart shows your trip earnings and reimbursements, but doesn’t include Resortifi fees, host incentives, or host cancellation fees. The gross earnings value is only used for tax reporting purposes.
Get personalised tax advice
For expert guidance on applying tax rules to your situation, schedule a consultation with POP Business, an award-winning Australian accounting firm experienced in car sharing businesses.
POP Business can assist with:
- sDifferentiating between personal and business income
- Claiming car-related business expenses
- Calculating and claiming depreciation
- Choosing a tax-effective structure for your car sharing business
You can book a tax-deductible 45 minute consultation with POP Business at an exclusive discounted cost of $350 (incl GST). Exclusive discount applies for a limited time only, redeemable only by Australian Resortifi hosts.