Category Archives for "Tax on Rideshare Earnings"

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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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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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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What Expenses Can I Write Off If I’m Driving for Uber?

Uber Expenses

Every time I speak with other drivers, I get asked about this. Often the drivers are new, but experienced drivers are struggling with the answers on this topic as well since Uber tend to shy away from providing any assistance with this. I’m not a tax expert, but with a bit of research, and some advice from people in the know, I’ll cover here what I’ve discovered.

You should also read our articles on GST Obligations for Drivers and on Keeping a Logbook.

Mobile Phone and Service

Your mobile phone and the cost of mobile service are both expenses you should claim. It’s important to only claim the percentage of use that you attribute to being necessary to produce income. For many drivers, that may be 100%, and others much less. Look at your phone usage for a period and work out what you should be claiming. Also, any repairs to your phone such as a screen replacement can also be claimed. Bought a handsfree cradle? Claim it!

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