ATO's Warning on undeclared income

Don't Let Undeclared Income Come Back to Haunt You

The Australian Taxation Office (ATO) has stepped up its efforts to identify undeclared income, with a particular focus on side hustles and digital platform earnings. From 1 July 2023, the ATO is collecting data directly from ride-share services like Uber, accommodation platforms like Airbnb and Stayz, and content monetisation channels such as OnlyFans, YouTube, and social media influencers.

Thanks to its advanced data-matching and analytics software, the ATO can now more easily detect discrepancies between what taxpayers report and what platforms disclose. This includes income from:

• Ride-share driving and delivery services

• Short-term rental accommodation

• Online content creation

• Affiliate marketing and sponsored posts

• Paid subscriptions on platforms like Patreon or OnlyFans

• Freelance gigs and services listed on digital marketplaces

When a Hobby Becomes a Business

Many taxpayers don't realise that what starts as a casual side gig, like posting content or hosting a room, can quickly evolve into a business in the eyes of the ATO. Once your activity becomes regular, organised, and profit-driven, you're expected to:

• Register for an ABN

• Keep proper financial records

• Include your earnings in your income tax return

• Register for GST if your turnover exceeds the threshold

Failing to do so could result in audits, penalties, and interest charges.

The New Data-Sharing Regime

Under the Sharing Economy Reporting Regime (SERR), digital platforms are now legally required to report transaction data to the ATO. This information will be used to cross-check income declared in tax returns, making it harder than ever to avoid detection.

If you’ve previously under-reported income from these sources, now is the time to rectify it.

Stay Compliant and Stress-Free

At Dolman Bateman, we specialise in helping individuals with multiple income streams, whether you’re a YouTuber, OnlyFans creator, Airbnb host, or Uber driver. We’ll help you understand your tax obligations, identify legitimate deductions, and ensure you're on the right side of the law.

Call us today on (02) 9411 5422 or book an appointment below.

Don’t wait for an ATO audit. Take control of your tax situation now.

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.