It’s highly recommended that you have an Australian Business Number (ABN) if you’re earning money through VanLife Connect. If you’re doing this as more than a hobby, an ABN helps you operate legally and invoice for your services. While VanLife Connect doesn’t require an ABN to sign up, keep in mind:
- Income Tax: Money you earn through the app is income you must declare to the Australian Taxation Office (ATO). VanLife Connect does not deduct income tax from your payouts – you receive the gross amount and it’s up to you to report it at tax time. We will provide records of your earnings (and you can view your completed bookings history for amounts).
- ABN and Reporting: Under the government’s Sharing Economy Reporting Regime, VanLife Connect is required to report Provider earnings to the ATO, including ABNs and total payments received. This means at the end of the financial year, the ATO will know how much you earned via the platform. If you haven’t provided an ABN, those earnings could be attributed to you personally. It’s best to have an ABN if you’re treating this as a business, to avoid any withholding issues and to make your tax reporting clear.
- GST: If your turnover from all your business activities exceeds $75,000 per year, you are required to register for GST in Australia. If you are GST-registered, you need to include GST in your prices on VanLife Connect. (Travellers will pay the price you list, which should be GST-inclusive in that case.) VanLife Connect does not add GST on top for you; we also do not withhold or remit GST to the ATO on your behalf – that’s your responsibility. We will issue you a tax invoice for the commission fee we charge you on each booking, which includes our ABN and GST amount, for your records. If you are not registered for GST (e.g. if you’re under the current $75kpa threshold), then you simply don’t charge it in your price.
In summary, you handle your own tax obligations. Consult an accountant or tax advisor if you’re unsure, but plan to set aside a portion of your earnings for tax and keep records of your income and expenses.