(Transcript from World News Radio)
The federal government is cracking down on what's known as the shared economy.
Sharing underused resources is becoming a popular - and financially attractive business.
And as Ricardo Goncalves reports, the latest target - is ride sharing provider - Uber.
Uber Australia General Manager David Rohrsheim has long argued its ride-sharing drivers - operating its cheaper uberX option - are not taxi drivers.
"We don't oppose Uber partners paying all their fair share of taxes. What we object to is them being treated differently to every other small business. Every other business is entitled to operate up to $75,000 of income before they're required to start lodging Business Activity Statements."
Small businesses earning less than $75,000 are not required to apply for GST.
But the Australian Taxation Office says those rules now don't apply to ride-sharing services.
It classifies them as 'taxi travel' - something David Rohrsheim doesn't agree with.
"We tjhink this is a very surprising decision. This is not a tax on Uber. This is a tax on 9,000 ordinary Australians who now have access to a part-time economic opportunity. All of a sudden the ATO has decided to slap a bunch of red tape and paperwork on top of them."
Drivers who use their own cars as taxis will have to register for GST by August the 1st.
The Taxi Industry Association has welcomed the move.
So too has Ned Moorfield, from taxi booking app provider GoCatch.
"We think it is an important step toward creating a more even playing field in the GST treatment of these kinds of services, so (it's) absolutely something we welcome and a great step, I think."
Uber says it will challenge the decision.
But as the sharing economy grows, so too will legal complexities, some of which, experts say, will affect the likes of online rental facilitator Airbnb.
The ATO says the status quo will remain for now, prompting Airbnb to release a statement saying that it provides clarity for its hosts across the country.
It's another signal that the sharing economy is here to stay.
Senior Partner John Corias , from small business specialising accounting firm m.a.s accounts, says that may soon change.
"They're trying to fall under the areas of the legislation that says residential income is not subject to GST. That's not what this is. It is similar to hotel accommodation and realistically what is happening is they're creating this unfair playing field between hotels and this particular sharing economy market."
John Corias says Airbnb may soon have to pay GST.
But he says there is a greater issue around capital gains tax if a rented room is part of a principal place of residence.
"Your principal place of residence was traditionally a capital gains tax-free property. With data income matching facilities available at the ATO, you've got a situation where they'll be able to say - John Corias has rented his home for 150 days out of this financial year, there is 365 days in the year , therefore is property now subject to capital gains tax?"
The government is currently seeking submissions on tax issues - as it discusses reform.
