Are you car-sharing? Here’s what you need to know about your tax obligations

Picture courtesy City of Port Phillip

Picture courtesy City of Port Phillip

Are you renting , hiring or sharing your car?

If you rent, hire or share your car through a sharing platform like Car Next Door, Carhood or DriveMyCar Rentals, you :

  • must declare the income in your tax return,

  • may need to pay the goods and services tax and get an ABN,

  • are entitled to claim certain expenses as income tax deductions, and

  • need to keep records of :

    • income received and

    • expenses you can claim as deductions and GST credits

See also Tax and the sharing economy

Can I claim car expenses?

Yes, you can claim car expenses for income tax purposes* as long as:

  • expenses are related to the renting, hiring or sharing of your car

  • you only claim the part of the expense that directly relates to renting, hiring or sharing, and

  • you keep records, such as receipts, to back up your claims.

What expenses can I claim?

  • Platform car –sharing charges eg ( and this also depends on the particular on-line platform )

    • membership fees

    • availability fees

  • Car expenses in proportion to your personal use

Making it easy!

To get your tax records organised and in the one place, download the free myDeductions app from the ATO to your smart phone and add :

  • deductions/expenses

  • vehicle trips

  • income (if you're a sole trader)

  • photos of your invoices and receipts.

Next steps:

Call for a quick chat or drop us a line about getting into the savings habit and getting your income more tax-effective.

Further reading:

Busted : Top 10 tax myths ; ATO: Peer to peer car sharing

*as an individual (or as partner in a partnership that has an individual partner