"End of Financial Year Tax Update" email

ricdam

Well-Known Member
Just received the email below from Uber. FINALLY we have an official statement about tax related issues:

Tax season is upon on us and for some driver-partners it will be the first time you will have income generated from ridesharing in your tax filings. Below we have put together a list of common questions we receive regarding income tax and GST.

To help you at tax time, this year we are excited to announce the following initiatives:
  • [NEW] Last week we launched monthly tax summaries which are now available in your partner dashboard in the ‘Tax Summary’ tab. You will find monthly tax summaries back to July 2015, so these will be a super helpful resource for you and your tax agent to complete your relevant tax forms.
  • The team at H&R Block have created income tax and GST fact sheets specifically for Uber driver-partners.
  • Our friends at PwC, H&R Blockand Nixer have created some products (and deals) to help Uber driver-partners with tax compliance.
It’s important to remember, we aren’t tax experts and can not give any taxation advice for your specific circumstances. If you have further questions we recommend speaking to a taxation professional, who can give you tax advice specific to your situation.

We understand tax can be confusing - but hopefully with these resources you can focus on what you do best - moving Sydney.

All the best,

Uber Operations Team



FAQ’s

Do I need to pay income tax?

We expect all of our driver partners to meet their tax obligations like everyone else. This would include declaring your Uber income, plus any other income earned from other sources during the tax year. You may also be able to claim your Uber related expenses (as deductions) through your income tax return.

Do I need to register for GST?

The ATO’s current guidance is that ridesharing partners should be registered for GST. To be registered for GST, you must register for an ABN and file quarterly Business Activity Statements (BAS). We do not require you to have an ABN to use the Uber platform.

Who pays the GST?

All fares are inclusive of any applicable taxes so if you do register for GST, you will be responsible for paying the GST to the ATO. By way of example, if the total cost of a ride you provided was $11, $1 of this will be GST. The easiest way to calculate the amount of GST you would need to set aside for each total trip cost is to divide by 11.

Do fares include GST?

All fares are inclusive of any applicable taxes so you are responsible for any applicable GST payable to the ATO.

If you are registered for GST, you can offset against your taxable supplies any GST which you pay on your items of expenditure. These are called input tax credits. Items where you may be able to claim a tax credit include fuel and servicing costs for your vehicle, for example.

Has the GST issue been resolved with the ATO?

The ATO issued guidance last year stating that ridesharing was the same as a taxi service and therefore drivers needed to remit GST from the first dollar earned. We disagree with this guidance and are seeking to have the matter resolved in the Federal Court.
 

Burdo

Member
Has the GST issue been resolved with the ATO?

The ATO issued guidance last year stating that ridesharing was the same as a taxi service and therefore drivers needed to remit GST from the first dollar earned. We disagree with this guidance and are seeking to have the matter resolved in the Federal Court.
This IS NOT your get out of jail card people for not submitting BAS returns. I suggest you still submit your returns and comply with what ATO is asking until there is a clear understanding from the outcome of the legal case.
 
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