Your Guide to: The Sharing Economy Reporting Regime (SERR)

Compliance & Consumer Law, Business Planning

Under the Sharing Economy Reporting Regime (SERR), operators of electronic distribution platforms (EDP) are required to report specific transactions. 

  

What is the Sharing Economy Reporting Regime (SERR)?  

The sharing economy, powered by digital platforms, seamlessly connects customers with goods and services. However, the Australian Taxation Office (ATO) has identified widespread underreporting of income earned through these platforms. To tackle this challenge, the ATO introduced the Sharing Economy Reporting Regime (SERR), ensuring transparency and proper reporting within the sharing economy. 

 

Do These SERR Reporting Obligations Apply to You? 

If you run an EDP, you’re required to report specific transactions involving paid services or goods provided through your platform. 

But what exactly is an EDP?  

It’s a service that: 

  • Allows sellers to use your service to make sales to buyers – think booking a stay (e.g. Airbnb), arranging a car ride (e.g. Uber) etc. 
  • Is delivered via electronic communication, for example, a website, app store or online marketplace. 

However, not all platforms qualify as an EDP. You’re off the hook if your platform only provides: 

  • Carriage services that transmit electronic communications 
  • Access to payment systems or payment processing services 
  • Advertising that simply directs buyers to a seller’s website 

 

Key Dates to Know  

Starting July 1, 2023, EDPs must report transactions related to: 

  • Taxi travel 
  • Ride-sourcing 
  • Short-term accommodation (90 days or less) 

Starting July 1, 2024, the reporting will extend to services such as: 

  • Asset hire 
  • Task performance 
  • Food delivery 

Reporting Deadlines: 

EDP operators are required to report transactions twice a year.  

  • 1 July to 31 December: Reports due by 31 January of the following year. 
  • 1 January to 30 June – Reports due by 31 July of that year. 

Don’t miss these crucial dates—stay compliant and keep your business running smoothly! 

 

Are There Penalties for Inaccurate Reporting? 

As an EDP operator, it’s crucial to have the right systems and procedures in place to ensure your reports are accurate. 

Here’s how you can avoid penalties: 

  • Collect the right information from sellers 
  • Accurately record and update seller details as needed 
  • Correct any errors promptly when they’re spotted 

Penalties can apply for late or incorrect information. 

 

Key takeaways  

  • Comply with the SERR. 
  • Know your platform’s role so you can stay on top of your reporting obligations!  

 

Gladwin Legal are experts in Retail Law and have extensive experience in advising businesses. If you require assistance in understanding your legal obligations ,please contact us at or 1300 033 934.