Category Archives for "Rideshare Tax Deductions"

Uber and GST Revisited

Change from December 2017

From the 1st of December 2017, Google started invoicing its Australian drivers as an Australian entity.

Among other things, this means that Uber, just like the rest of us, is paying GST on its earnings.

What Does This Mean for Drivers?

This change has no effect on your net income as a driver.

You still have to pay GST on the total charged to your riders. Your invoice from Uber will be higher as it now has GST added, but this GST in turn reduces your GST payment obligation.

This means that your weekly Uber income will be reduced by the GST amount but you recover it by a lower GST amount paid to the ATO on your quarterly BAS.

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If You’re An Uber Driver You Need Rideshare Insurance

I farewelled my old insurance company today.

It was sad, really. I'd been with them forever and they'd always been terrific to deal with.

But my renewal was coming up in a couple of weeks and I'd decided it wasn't smart not to have a policy that covered me while I was working as an Uber driver as well as driving privately. The Uber TOS are far too vague to rely on and in any case don't cover you while you're waiting for or on your way to a ride.

So I phoned my (very well known) insurance company.

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New CTP Requirements for Uber Drivers in Qld

Uber Drivers Must Update Their CTP to Class 26

Helping Uber Drivers

Legislation passed by the "we must be seen to be doing something about Uber" Queensland Government means that Uber drivers must upgrade their CTP insurance cover to Class 26 (Booked Hire).

Every driver in Queensland must have CTP insurance. You will have paid the CTP premium with your car registration renewal, but can choose your own insurer from a limited selection.

For example, I'm with RACQ insurance, and the yearly premium of around $350 is added to my registration fee.

Uber Drivers and CTP: When Does This Happen?

You may hear a date of 1 January 2018 being bandied about. Don't be misled.

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Uber Drivers: Submit Your BAS the Easy Way

Step 1 - Create a MyGov Account

Uber Driver: MyGov Home Page

MyGov is the Australian Government's portal into all government-related services, such as Centrelink and the Australian Tax Office.

If you don't have a MyGov account, you need to create one, as it makes submitting your BAS and paying your GST simple and easy.

Go to my.gov.au and follow the steps to create an account and link it to your tax details.

If you're unsure of the steps required here, send me a comment below and I'll go through it in detail.

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Uber and GST

Important Update

From 1/12/2017, Uber started invoicing as an Australian entity, paying GST to the ATO.

Although this has no effect on your net income for the quarter, it does reduce your weekly income by the GST amount and then give it back to you by a reduced amount owed on your quarterly BAS.

See the post Uber and GST Revisited for full details.

Uber and GST

Although we have covered the paying of GST by Uber drivers in Australia, along with other tax issues in previous posts (see Do Uber Drivers Have to Pay GST? and How Do Taxes Work for Rideshare Drivers?) some drivers are still unsure.

So this post is a simple list of GST considerations for Australian Uber drivers.

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Is Being an Uber Driver in Australia Ideal for Baby Boomers?

Uber Driver Australian Pension Supplement

Australian Baby Boomer Uber Driver

A large number of Australian baby boomers rely on the age pension as their primary or only source of income. The OECD report Pensions at a Glance found that more than one third of Australian pensioners were living below the poverty line, making Uber driving an ideal income supplement for them.

Being an Uber driver is great for a baby boomer pensioner because, unlike other forms of income, it can be structured so that it doesn't affect the size of the pension that can be claimed. This is because expenses that would be incurred anyway become legitimate business expenses, reducing the "paper profit" from Uber driving to zero or even less than zero and therefore not reducing the pension amount. See ​How Do Taxes Work for Rideshare Drivers?​​​

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How Do Taxes Work for Rideshare Drivers?

Important Update

From 1/12/2017, Uber started invoicing as an Australian entity, paying GST to the ATO.

Although this has no effect on your net income for the quarter, it does reduce your weekly income by the GST amount and then give it back to you by a reduced amount owed on your quarterly BAS.

See the post Uber and GST Revisited for full details.

Tax obligations for Uber drivers.

GST and Income Tax for Uber Drivers

Uber drivers have to be concerned with both GST and income tax. It's vitally important to get both absolutely correct. Otherwise, you could be in for a nasty surprise further down the track.

GST

Everyone understands GST. It's 10% of your earnings, right?

No, wrong. For an Uber driver, there are 2 very important considerations. You must get them right and you must be able to provide the necessary documentation if you're ever audited by the Australian Tax Office.

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Do Uber Drivers Have to Pay GST?

Important Update

From 1/12/2017, Uber started invoicing as an Australian entity, paying GST to the ATO.

Although this has no effect on your net income for the quarter, it does reduce your weekly income by the GST amount and then give it back to you by a reduced amount owed on your quarterly BAS.

See the post Uber and GST Revisited for full details.

Uber drivers and GST

Unfortunately, Uber drivers are liable for GST as was decided in a ruling the ATO published in August 2015. The ruling was challenged in court, with the court upholding the ATO ruling, that Uber was considered “taxi travel” and was subject to the same GST rules as actual taxis. So what does that mean for you as a driver?

Not only do Uber drivers have to pay GST, they have to pay it on the total amount that the passenger pays, not just the amount that Uber transfers to their bank account. In a sense, you are paying Uber's share of the GST as well, because they are not registered as an Australian company.​

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