Key facts
- Platform reporting, rideshare and stays
- Reported to the ATO from 1 July 2023
- Platform reporting, other
- Reported to the ATO from 1 July 2024
- Platform reports due
- 31 January and 31 July each year
- Rideshare GST
- Register before your first trip, any turnover
- Other side businesses
- GST registration at $75,000 GST turnover
- Holiday home guidance
- TR 2026/1 and PCGs 2026/2, 2026/3, final 20 May 2026
Hobby or business: does a side hustle count?
The ATO treats an activity as a business when it is carried on continuously and repeatedly with the intention of making a profit. Signs include a regular schedule, set prices, a business plan, insurance and marketing. A one-off sale is not a business unless it is the first step in one or you intend to repeat it, and an activity with no profit intention is generally a hobby.
The ATO's own example is a personal trainer who ran free weekend sessions as a hobby, then became a business once he was licensed, charged set rates, bought insurance and marketed his sessions. Once you are in business, you may need an ABN, must keep proper records and may need to register for GST.
Even if your activity is not a business, rent from a room or property you let out through a platform is still assessable income. The ATO's position is that side hustle income should be declared, so assume it is taxable unless it is genuinely a hobby.
Platforms report your income to the ATO
Under the sharing economy reporting regime, electronic distribution platforms report the income their sellers earn directly to the ATO. Ride-sourcing, taxi and short-term accommodation platforms have reported since 1 July 2023. All other reportable platforms have reported since 1 July 2024.
Platforms report twice a year: by 31 January for July to December, and by 31 July for January to June. The ATO matches this data against tax returns and activity statements, so unreported platform income is easy for it to find.
Airbnb and holiday homes: what you can claim
Rent from short-term stays is assessable income, even if the property is not mainly used for rental. The ATO finalised new rental guidance on 20 May 2026, TR 2026/1 with PCG 2026/2 and PCG 2026/3, which covers short-term rentals including a room in your home, whole houses and holiday homes. Under it, if a holiday home is not mainly used or held for rental, because personal use is prioritised, ownership costs such as interest, council rates, insurance and repairs are not deductible.
Signs that personal use comes first include blocking out peak periods, rejecting enquiries and telling agents not to let the property at certain times. Costs such as platform commissions, booking fees and advertising remain deductible to the extent they relate to earning rent. Where the property is mainly rental, other expenses are apportioned for private use, unavailable periods, unrented areas and below-market rent to family or friends.
Worked example using the ATO's approach: a holiday home is genuinely available for rent all year apart from one week you stay there yourself. You can claim 51/52 of the general expenses. If those expenses total $10,400, you claim $10,200, plus the full platform commissions and booking fees.
Renting part of your home and capital gains tax
Renting out part or all of your main residence, including short stays through sharing platforms, generally means you only get a partial main residence exemption when you sell. The taxable part of the gain is worked out by the floor area used to earn income and the number of days it was used that way.
For example, if a room making up 20% of the floor area was rented for half the time you owned the home, about 10% of the capital gain would be taxable. The test is whether you could deduct interest on that part of the home, and it applies even if you have no loan, so you cannot skip deductions to protect the exemption. If you first used the home to earn income after 20 August 1996, you are generally treated as having acquired it at its market value on the day you first earned income from it.
When to get help
Side income gets complicated quickly when it involves GST, a home you live in, or a holiday home you also use. The ATO already has the platform data, so the aim is a return that matches it and claims everything you are entitled to.
Getting the records and apportionment right each year is far easier than reconstructing them when you sell. Acquire Strategic Accounting in Brisbane prepares returns that include platform, rideshare and rental income.
Related questions
Does the ATO know about my Airbnb income?
Yes. Short-term accommodation platforms have reported host income to the ATO under the sharing economy reporting regime since 1 July 2023. The ATO compares this data with tax returns, so leaving Airbnb income out is likely to be picked up.
Do I need an ABN for a side hustle?
If your side hustle is a business, you may need an ABN, and you need one before registering for GST. Rideshare drivers need an ABN and GST registration before their first trip. Renting out a room or property on its own does not usually make you a business.
Can I claim expenses on a room I rent out on Airbnb?
Yes, for the part of the home and the periods it is rented or genuinely available for rent. General expenses are apportioned for the area rented and the time it is used to earn income, while platform commissions and booking fees can be claimed for the rental. Keep in mind that the same floor area and days reduce your main residence exemption when you sell.
Is income from selling things online taxable?
It depends on whether you are in business. Selling personal items occasionally is generally not a business. Buying goods to resell, or selling regularly with a profit motive, usually is, and the income must be declared in your tax return.
Can I claim expenses for rideshare driving?
Yes, you can claim the business portion of your costs, such as car expenses and platform fees, against your driving income. Because you are registered for GST, you can also claim GST credits on business purchases through your BAS. Keep records of your trips, costs and receipts.
Sources
General information only, current at 31 October 2026. It does not take your circumstances into account. Rates and thresholds change, so check with us or the ATO before you act.
