With the announcement that Uber is coming to Cairns there are a few things to know if you are thinking of becoming a Uber driver.
The ATO and Federal court have decided that ‘ride-sourcing’ (such as that provided using Uber) is ‘taxi travel’ within the meaning of the GST law.
This means that Uber drivers are effectively under the same ATO rules as Taxi drivers and need to do the following things:
- Get an Australian business number (ABN);
- register for GST, regardless of how much they earn, and pay GST on the full fare received from passengers for each trip they provide;
- keep detailed records and lodge activity statements (BAS); and
- include income from ride-sourcing in their income tax returns.
Drivers are also entitled to claim income tax deductions and GST credits (for GST paid) on expenses apportioned to the ride-sourcing services they have supplied.
The ATO has warned that they can match people who provide ride-sourcing through data-matching, and will continue to write to them to explain their tax obligations.
Call our office today to discuss the above requirements before you make the decision to start Uber driving.