Payments & Earnings

A Guide for Equipment Owners on Local Hire Marketplace

Hiring out your equipment through Local Hire Marketplace can be a simple way to earn additional income from equipment you already own.

Local Hire Marketplace uses Stripe to securely process booking payments and Owner payouts. Payments are processed through the platform so Owners and Hirers have a clear record of each transaction.

This guide explains how Owner payments, service fees, payouts, security deposits, cancellations, refunds and basic tax record keeping work.

1. How Owner Payments Work

When a Hirer makes a booking through Local Hire Marketplace, payment is processed securely through Stripe.

For a standard booking:

  1. The Hirer selects the equipment and requested hire period.
  2. The booking price is calculated.
  3. The Hirer submits their booking and payment details.
  4. The Owner accepts the booking.
  5. The booking payment is processed.
  6. The equipment is hired for the agreed period.
  7. Once the booking is completed, the Owner's earnings are released for payout 24 hours after the booking completion time.
  8. Stripe transfers the payout to the Owner's nominated bank account.

With Local Hire Marketplace’s standard Calendar Booking process, the Hirer's card payment is captured once the booking request is accepted. The Owner's earnings are then held until 24 hours after the booking is completed.

Owners should never request that a Hirer pay the hire amount directly by cash, bank transfer or another payment service to avoid Local Hire Marketplace's payment system.

2. Local Hire Marketplace's 6% Owner Service Fee

Local Hire Marketplace charges Owners a 6% service fee on completed equipment hire bookings.

The service fee helps Local Hire Marketplace provide and maintain services including:

  • Marketplace technology
  • Secure payment processing
  • Booking management
  • Owner and Hirer profiles
  • Messaging
  • Reviews and reputation features
  • Customer support
  • Marketplace development
  • Trust and safety systems

Example

If your equipment hire amount is:

  • Hire amount: $100.00
  • Owner Service Fee: 6% = $6.00
  • Owner earnings: $94.00

This example excludes any other adjustments that may apply to the particular booking.

Owners should consider the 6% service fee when deciding their listing prices.

3. Understanding Your Owner Earnings

Your Owner earnings are generally calculated from the agreed hire amount after deducting the applicable 6% Owner Service Fee.

A booking may also be affected by:

  • Approved refunds
  • Booking changes
  • Extensions
  • Cancellations
  • Disputes
  • Other adjustments authorised under Local Hire Marketplace policies

A Security Deposit is not normally considered Owner hire income simply because it is associated with a booking.

Owners should check their booking details carefully, so they understand:

  • The total hire amount
  • Applicable Owner Service Fee
  • Booking dates
  • Any approved adjustments
  • Expected Owner earnings

4. Adding Your Payout Details

Before receiving earnings, Owners must provide valid payout information.

Local Hire Marketplace's payment system uses Stripe, our trusted third-party payment system, to collect the necessary payout and identity information.

Owners may be asked to provide information such as:

  • Full legal name
  • Date of birth
  • Residential or business address
  • Bank account information
  • Individual or business details
  • Identification documents where required

Stripe may require identity verification before an Owner can receive payouts. Local Hire Marketplace’s Stripe integration uses Stripe-hosted onboarding to collect and verify Owner payout details.

Keep your payout information accurate and up to date.

5. When Owners Receive Their Payout

Payment from the Hirer and payout to the Owner are not the same event.

The Hirer normally pays when the booking is accepted, but the Owner's earnings are held until 24 hours after the booking has been completed.

For a Local Hire Marketplace Calendar Booking, the transaction is automatically marked completed after the booking period ends, unless the Owner marks the equipment returned early through the marketplace administration system. At that point, the payout process is triggered for payment in 24 hours.

6. How Long Does a Payout Take?

After the payout is triggered, Stripe begins transferring the funds to the Owner's nominated bank account.

Local Hire Marketplace advises that Stripe payouts can generally take up to 5 working days, depending on your bank processing times.

Actual payout timing can vary because of factors including:

  • Your bank
  • Weekends
  • Public holidays
  • Stripe verification requirements
  • New account checks
  • Incorrect bank details
  • Account restrictions
  • Payment reviews
  • Failed payouts

Owners should therefore avoid relying on equipment-hire earnings being available in their bank account immediately after a booking finishes.

7. Why Is My Payout Delayed?

A payout may be delayed for several reasons.

Common examples include:

  • Your bank account details are incomplete
  • Stripe requires additional identity verification
  • Your Stripe connected account has restrictions
  • Your bank has rejected the payout
  • The booking has not yet been completed
  • The booking is being reviewed
  • A refund or dispute is being resolved
  • Normal bank processing is still underway

If Stripe requires additional information, complete the requested verification as soon as reasonably possible.

Owners should ensure the name and details associated with their bank account are correct.

8. Failed Payouts

Occasionally, a payout may fail.

Possible reasons include:

  • Incorrect BSB
  • Incorrect account number
  • Closed bank account
  • Bank account unable to receive the payment
  • Verification problems
  • Bank rejection

If you become aware of a failed payout, check your payout details and follow any instructions provided by Local Hire Marketplace or Stripe.

Correcting your bank information does not necessarily mean the payout will appear immediately. Stripe may need to attempt the payout again.

9. Keep Payments on Local Hire Marketplace

Owners and Hirers should keep booking payments through Local Hire Marketplace.

You should not encourage Hirers to bypass the marketplace to avoid service fees.

Keeping the transaction on the platform provides:

  • A booking record
  • Payment history
  • Messaging history
  • Cancellation records
  • Refund records
  • Evidence for disputes
  • Review eligibility
  • Better protection for both parties

10. Owner Tax Information

Money earned from hiring equipment may have Australian tax consequences.

The Australian Taxation Office states that income earned through sharing-economy platforms can be assessable income even where the person is not carrying on a business.

This means Owners should not assume that equipment-hire income is tax-free simply because:

  • It is occasional
  • The equipment is personally owned
  • The income is described as "extra cash"
  • The Owner does not consider themselves a business

Your individual circumstances determine how income and deductions should be treated.

Local Hire Marketplace does not provide personal tax advice. Consider speaking with a registered tax agent or accountant if you are unsure.

11. Sharing Economy Reporting to the ATO

Australian sharing-economy platforms may have reporting obligations under the Sharing Economy Reporting Regime (SERR).

The ATO states that electronic distribution platforms may be required to report information about eligible transactions and the sellers who earn income through those platforms.

Reporting for other reportable sharing-economy transactions commenced from 1 July 2024.

Owners should therefore maintain accurate records and ensure they declare income where required.

Do not rely on whether or not information appears in a pre-filled tax return to determine whether income must be declared.

12. GST

Some Owners may also need to consider Goods and Services Tax (GST).

Generally, an Australian business or enterprise must register for GST where its GST turnover reaches $75,000 or more, subject to the applicable GST rules and exceptions.

Whether equipment-hire activity constitutes an enterprise and how the GST rules apply will depend on the Owner's circumstances.

Owners who are approaching the GST threshold or regularly hiring significant amounts of equipment should consider obtaining professional tax advice.

13. Owner Record Keeping

Good records can make tax time much easier.

Consider keeping records of:

  • Local Hire Marketplace booking income
  • Owner Service Fees
  • Payout statements
  • Equipment purchases
  • Repairs
  • Servicing
  • Replacement parts
  • Consumables
  • Insurance
  • Cleaning expenses
  • Equipment accessories
  • Depreciation information
  • Business-related bank fees
  • Other legitimate expenses associated with earning hire income

The ATO states that most business tax records generally need to be retained for five years, although some records may need to be kept longer depending on the circumstances.

14. Separate Your Records Where Possible

Owners who frequently hire equipment may find it useful to:

  • Use a dedicated bank account
  • Download booking records regularly
  • Keep digital copies of receipts
  • Record maintenance expenses
  • Record equipment purchase dates
  • Keep invoices for replacement equipment
  • Maintain a spreadsheet or accounting system

You do not necessarily need a separate bank account simply because you occasionally hire equipment, but separating transactions can make record keeping considerably easier.

15. Keep Evidence of Expenses

If you intend to claim expenses relating to your equipment-hire activity, keep appropriate evidence.

Examples include:

  • Tax invoices
  • Receipts
  • Bank statements
  • Repair invoices
  • Service records
  • Purchase receipts
  • Insurance invoices
  • Replacement-parts receipts

Where equipment is used both personally and to earn hire income, different tax treatment or apportionment may apply.

Seek professional advice if you are unsure.

16. Protect Yourself From Payment Scams

Be cautious if a Hirer asks you to:

  • Accept payment outside Local Hire Marketplace
  • Refund money to a different bank account
  • Provide your card details
  • Provide internet banking passwords
  • Provide security codes
  • Send money before receiving a booking
  • Click suspicious payment links
  • Pay a fee to "unlock" your earnings

Local Hire Marketplace or Stripe should never require you to provide your internet banking password to a Hirer.

If something appears suspicious, do not proceed and contact Local Hire Marketplace Support.

17. Owner Payment Checklist

Before Listing

  • Decide your hire rates
  • Consider the 6% Owner Service Fee
  • Set an appropriate Security Deposit where applicable
  • Add your payout details
  • Complete any required Stripe verification
  • Ensure your bank account details are correct

During a Booking

  • Keep payment through Local Hire Marketplace
  • Do not request private payment
  • Record approved booking changes
  • Process extensions through the marketplace
  • Keep important communication in the platform

After a Booking

  • Inspect returned equipment promptly
  • Record any damage
  • Follow the Security Deposit process if necessary
  • Allow the booking to complete
  • Monitor your payout
  • Keep booking and payout records for tax purposes

18. Frequently Asked Payment Questions

Why haven't I been paid as soon as the Hirer pays?

The Hirer's payment and your payout happen at different stages. Owner earnings are held until the booking is completed before the payout process begins.

Does Local Hire Marketplace take a fee from Owners?

Yes. The standard Owner Service Fee is 6% of the equipment hire amount.

Can I add the 6% fee to my listing price?

Owners control their hire rates and may consider the service fee when deciding their advertised price.

Is the Security Deposit part of my earnings?

No. A Security Deposit is security associated with the booking and should not be treated as normal hire income.

Can the Hirer pay me cash instead?

Booking payments should remain within Local Hire Marketplace so the transaction is properly recorded and covered by the marketplace's normal processes.

How quickly will my payout reach my bank account?

Once the booking has completed and the payout has been triggered, Stripe processing and bank transfer times apply. It may take several business days.

Do I have to declare my Local Hire Marketplace earnings?

Sharing-economy income can be assessable income in Australia. Owners are responsible for understanding and meeting their own tax obligations.

Does Local Hire Marketplace provide tax advice?

No. Owners should obtain advice from the ATO, a registered tax agent or accountant where necessary.

Getting Paid Through Local Hire Marketplace

A simple approach to Owner payments is:

List your equipment → Accept a booking → Complete the hire → Receive your payout

Keeping payments within Local Hire Marketplace helps create a clear and transparent system for both Owners and Hirers.

Remember

  • Local Hire Marketplace's Owner Service Fee is 6%
  • Keep all booking payments through the marketplace
  • Make sure your payout details are correct
  • Security Deposits are not normal Owner earnings
  • Follow the Cancellation & Refund Policy
  • Keep accurate records of your income and expenses
  • Understand your Australian tax obligations

Hire locally. Earn securely. Keep track of your earnings.