September 25, 2025

What the ATO Wants You to Know About Declaring Online Income in 2025

Published: Sept 2025 Gotax Publishing

In 2025, earning money through online platforms is more common than ever. Whether you're driving for Uber, selling handmade goods on Etsy, picking up jobs on Airtasker, or offering services through Upwork or Fiverr, the Australian Taxation Office (ATO) considers this income assessable—and they’re watching closely.

This blog breaks down what counts as income, what the ATO expects, how to stay compliant, and what happens if you don’t. We’ve also included answers to the most common questions Australians ask about online income and tax.

What Counts as Online Income?

If you earn money through any digital platform—whether it’s ride-sourcing, selling goods, or offering services—it’s considered assessable income. This includes:

Ride-sourcing platforms: Uber, DiDi, Ola
Online marketplaces: Etsy, eBay, Gumtree
Task-based platforms: Airtasker, Upwork, Fiverr
Content platforms: YouTube, Patreon, OnlyFans

Even if it’s casual or part-time, the ATO expects you to declare it. According to the ATO, “All money earned from ride-sourcing activities is assessable income and must be reported in your tax return”.

Do I Need an ABN or to Register for GST?

This depends on the nature and scale of your activity.

ABN (Australian Business Number): If you're operating like a business—regular income, advertising, invoicing—you’ll likely need an ABN. Learn more about Small Business Tax Returns.
GST Registration:
- Required if your annual turnover exceeds $75,000.
- Ride-sourcing drivers must register for GST regardless of turnover. If you’re driving for Uber, DiDi or Ola—even casually—you must register.

What Deductions Can I Claim?

You can claim expenses that directly relate to earning your income. These vary by platform:

Ride-Sourcing (Uber, DiDi)

Fuel, servicing, insurance
Car depreciation
Mobile phone usage
Cleaning and maintenance

Explore Rideshare Tax Returns for a full breakdown.

Online Sellers (Etsy, eBay)

Materials and supplies
Packaging and postage
Platform fees and commissions
Internet and phone costs

Task-Based Workers (Airtasker, Upwork)

Tools and equipment
Travel expenses
Home office setup
Software subscriptions

Important: You can only claim the business portion of mixed-use expenses. Keep detailed records and apportion correctly.

How the ATO Tracks Online Income

The ATO uses the Sharing Economy Reporting Regime (SERR) to collect data directly from platforms like Uber, Airtasker, Etsy, and YouTube. These platforms are now legally required to report your earnings to the ATO.

If you think the ATO won’t notice your online income, think again. They match platform data with your tax return. If there’s a discrepancy, expect a “please explain” or an amended assessment.

What Happens If You Don’t Declare?

Failing to declare online income can lead to:

Penalties and interest charges
Amended tax returns
Audits
Prosecution (in serious cases)

Even if your earnings are below the tax-free threshold, you must report them. The ATO has made it clear: “All side hustle income must be declared, regardless of amount”.

Common Questions About Online Income and Tax

Do I need to declare income from Uber or Airtasker?

Yes. All income earned through online platforms is assessable and must be declared.

Is selling on Etsy considered a business?

If it’s regular and profit-driven, yes. You may need an ABN and should report income accordingly.

Do I need to register for GST if I drive for Uber?

Yes. Ride-sourcing drivers must register for GST regardless of turnover.

Can I claim fuel and car expenses?

Yes, if they relate directly to earning income (e.g., Uber driving). Keep a logbook and receipts.

What deductions can Etsy sellers claim?

Materials, packaging, transaction fees, internet, and business-related costs.

Do I need to declare income if it’s under $1,000?

Yes. There’s no minimum threshold for declaring income.

What is SERR and how does it affect me?

SERR is the ATO’s data-matching system for online platforms. They receive your earnings directly from the platform.

Can I use Gotax to lodge my online income?

Absolutely. Gotax is built for Aussie taxpayers—including online earners. See Freelancer Tax Returns.

What happens if I don’t declare my online income?

You may face penalties, interest, audits, or prosecution.

Do I need an ABN for Airtasker jobs?

If you earn regularly and operate like a business, yes.

Can I claim internet and phone expenses?

Yes, if they’re used to earn income through online platforms.

Is selling second-hand items on Gumtree taxable?

Occasional sales aren’t, but regular profit-driven selling may be.

How do I know if I’m running a business?

If you intend to make a profit, operate regularly, and advertise—ATO may consider it a business.

Can I lodge late if I forgot to declare?

Yes, but penalties may apply. Lodge ASAP and seek help.

Does the ATO audit online platform workers often?

Yes. SERR makes it easier for them to identify undeclared income.

How to Stay Compliant

Keep detailed records of income and expenses
Declare all income—even small amounts
Understand your obligations (ABN, GST, deductions)
Lodge on time
Use a trusted tax platform like Gotax

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