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Car sharing Photo: Supplied
 
 
Dave McCowen | Aug, 23 2018 | 0 Comments

The Australian Tax Office has promised to crack down on people using their car to make a little cash on the side.

A statement released by the ATO on Wednesday says the government body “will be turning its attention to anyone earning income through car sharing platforms” to make sure people comply with the law. 

Services such as Car Next Door, Carhood or DriveMyCar which encourage owners to rent out their vehicles are central to the tax body’s latest move.

Car companies expect vehicle ownership models to become increasingly flexible in coming years, predicting people will choose to sub-let their car for additional income when the vehicle is not in use.

Ford Australia linked up with Carhood in 2016 (main image) to offer customers free airport parking, as long as they are happy to have their car loaned out while travelling.

Assistant Commissioner Kath Anderson says there is “some evidence” people might not understand the taxation implications of sharing vehicles for money.

“No matter how little you earn through car sharing, it is important to include it in your tax return,” she says.

“Car sharers can legitimately claim deductions for expenses like platform membership fees, availability fees, cleaning fees and car running expenses… [but] claims for private use amount to asking the rest of us to pay for your private petrol or car wash, and I’m pretty sure most Australians would say that’s not ok.”

As for folks who choose not to declare their earnings, Anderson says “the ATO has sophisticated systems and data to help identify where sharing platforms are being used to generate income”.

 
Filed under government industry news
 
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