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.

More...

An Example

This example is from my own Uber earnings for the week ended 25/02/2018.

My net income was $933.78 and my invoice from Uber for their services was $388.15, including GST of $35.31.

(I don't know why Uber's GST isn't exactly 1/11, but that's their issue, not mine. I need to deduct the same amount that they charge.)

So the total charged to my riders was $933.78 + $388.15 = $1,321.93, which includes GST of $120.18 ($1,321.93 divided by 11).

The total invoiced to me by Uber was $388.15, which included GST of $35.31.

So my net income was $1,321.93 - $388.15 = $933.78 and my GST owed is $120.18 - $35.31 = $84.87.

Using the Income and Expenses Spreadsheet

Using our Income and Expenses spreadsheet, I enter the $1,321.93 into the Income:Uber column, which then calculates the GST automatically and the $388.15 into the Uber Expense:inc GST column, which then calculates the GST (as $35.29, but I overtype it with the actual $35.31).

And that's it, the spreadsheet does the rest.

mm

Phil Lancaster

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