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.
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.
- If you derive any income at all from Uber or other rideshare driving, you must pay GST.
- The Australian Tax Office has access to Uber records and will know that you are earning income from rideshare. In the Jan-Mar 2017 quarter, the ATO sent letters to over 60,000 Uber drivers and recently said “The ATO has more work to do in educating drivers about their tax obligations and making sure they comply.”
- You must register a business name through ASIC. This doesn't have to be anything fancy. The simplest thing is to register your own name as a sole trader.
- You then need to register the business name for GST. Choose the option to pay quarterly.
- You pay your Uber GST via a BAS (Business Activity Statement). This can all be done online and you will be advised by email of when the form is available and when the GST payment is due.
- The GST owed to the ATO is one-eleventh of your Uber earnings PLUS the amount kept by Uber. So if your earnings for the quarter (the amount you banked) were $5,500.60 and Uber made $1,840.35 (shown on the Uber invoice to you) then your GST obligation would be one-eleventh of $7,340.95 = $667.35.
- This amount can be reduced by the GST paid on expenses incurred in order to make your Uber income. For example, if during the same quarter you spent $1,200.00 on fuel and your Rideshare Guy Vehicle Log shows that 95% of your driving is business related, the you would be able to reduce your GST payment by 95% of one-eleventh of $1,200.00 = $103.63. You can get all this calculated for you by using our Rideshare Guy Income and Expenses spreadsheet.
So that's it, in a nutshell. Paying your Uber and GST isn't all that complicated, particularly if you use our free resources and once you get everything set up and going, it's easy to maintain.