The Australian Treasury has released an exposure draft law for comment that seeks to give effect to the Federal Government’s announcement in its 2019-20 Mid-Year Economic and Fiscal Outlook that it would introduce a third-party reporting regime for the sharing economy. A Fact Sheet was also released and summarises the key aspects of the proposal.
Under the proposed amendments to be made to the existing Taxable Payments Reporting System (TPRS), operators of electronic platforms will be required to report information regarding participating sellers to the Australian Taxation Office (ATO) for data matching purposes. Broadly, the purpose is stated to be to help the ATO identify entities that may not be meeting their tax obligations.
With the new regime scheduled to first apply to some operators of electronic platforms in less than 12 months, affected businesses should start thinking about how existing systems might need to be adapted and to plan for the implementation of these new reporting obligations.