Why Gig Workers Are Facing Hefty Tax Bills in 2025

Australian gig economy workers could be in for an unwelcome surprise this tax season, as sweeping changes to income reporting laws take effect. According to CPA Australia, one of the nation’s largest accounting bodies, the Australian Taxation Office (ATO) is now receiving direct reports of gig economy earnings from digital platforms — meaning undeclared side-hustle income is far more likely to be detected.

Under the expanded Sharing Economy Reporting Regime (SERR), platforms such as UberEats, Airtasker, YouTube, OnlyFans and others must now report the income their users earn directly to the ATO. This aligns gig work with more traditional forms of employment, where earnings are routinely declared via third-party reporting from employers or banks.

Nothing Under the Radar

“Until recently, gig workers were required to self-declare their earnings, and many simply didn’t realise that these were taxable,” said CPA Australia Tax Lead Jenny Wong. “But now, those earnings are being reported in real time — and if your tax return doesn’t reflect what the ATO sees, you may receive an amended return, a surprise tax bill, or even penalties.”

This expansion follows the 2023 introduction of SERR for short-term rental platforms such as Airbnb. It now covers a much broader scope of activities, from food delivery and casual jobs to digital content creation and even the online rental of personal goods like clothing or parking spaces.

“Even if you’ve been earning by renting out your designer handbag or parking spot, that’s now considered income, and it must be declared,” Wong added.

Influencers Take Note

Those most at risk may be influencers and content creators, who often receive a mix of payments and non-cash benefits.

“You must declare income over the tax-free threshold of $18,200 — and yes, that includes perks like free clothes, holidays or even a car if they were received in exchange for promotion or services,” Wong said. “For successful creators, the tax payable could be in the tens of thousands.”

How to Stay Compliant

To avoid an unexpected bill or penalty, CPA Australia advises gig workers to:

• Declare all income – including gifts, cash and non-cash payments.

• Keep accurate records – of earnings and receipts for any deductible expenses.

• Understand your obligations – including whether you need an ABN or to register for GST.

• Seek professional advice – especially if your tax affairs are complex.

What Can You Claim?

Gig workers may be entitled to deductions, provided the expense is directly related to earning income, not reimbursed, and supported by documentation. Examples include:

• Home office costs – internet, phone or electricity.

• Motor vehicle expenses – including fuel, servicing and insurance (business portion only).

• Tools of the trade – such as cameras, editing software, or lighting equipment.

• Travel costs – between gig work locations.

As the gig economy matures, the ATO is catching up. For workers earning income outside traditional employment, the message is clear: declare it, document it — and don’t let tax time catch you off guard.

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