Get ready to lose more than half of your earning !!

According to individual income tax table per year from ATO websites, if your earning is more than 37000 a year, you will have to deduct 32.5 cents per dollar you earn when you process your yearly tax return.
Therefor, you will pay 11 cents for GST per dollar and another 20 cents/ 25 cents per dollar for Uber's Surcharge. so thats (32.5+ 11+ 20) cents = 63.5 cents per dollar for older drivers and and (32.5+11+25) = 68.5 cents per dollar for newer drivers.

which means per $100 will leave you only $36.5 for older and $31.5 for newer driver. it doesnt include your fuel cost, car services cost, amenities or meals on duty.

if you are being lucky enough to make this $100 in 4 hours, your hourly income is just above $9 or closer. if you deduct all fuel cost plus other costs, you would hardly make $7 an hour.

so considering that, its no point to drive if you reach your uber earning 37k.
 
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UberDriverAU

Well-Known Member
Your understanding of income tax and GST is quite poor. Revenue is not the same thing as taxable income, and your GST debits are 9.09 cents per dollar in revenue, not 11 cents per dollar.
 

LevelX

Well-Known Member
and your GST debits are 9.09 cents per dollar in revenue, not 11 cents per dollar.
Lost all credibility when they said 11 cents in the dollar! WTF!? No its not. That said, the OP has a point and you need to understand 'everything' to know your TRUE earnings. Including what income tax rate you're at (after deductions etc)

Don't work, get Centerlink and don't pay tax at all
 

Jack Malarkey

Well-Known Member
According to individual income tax table per year from ATO websites, if your earning is more than 37000 a year, you will have to deduct 32.5 cents per dollar you earn when you process your yearly tax return.
Therefor, you will pay 11 cents for GST per dollar and another 20 cents/ 25 cents per dollar for Uber's Surcharge. so thats (32.5+ 11+ 20) cents = 63.5 cents per dollar for older drivers and and (32.5+11+25) = 68.5 cents per dollar for newer drivers.

which means per $100 will leave you only $36.5 for older and $31.5 for newer driver. it doesnt include your fuel cost, car services cost, amenities or meals on duty.

if you are being lucky enough to make this $100 in 4 hours, your hourly income is just above $9 or closer. if you deduct all fuel cost plus other costs, you would hardly make $7 an hour.

so considering that, its no point to drive if you reach your uber earning 37k.
The position is not quite as bad as that.

You pay income tax on your taxable income, ie on your gross income minus deductions. These deductions include the 25% (or 20%) commission to Uber.

Also you pay the relevant marginal tax rate only on the slice of income above the threshold. So if your taxable income is above $37,000, you pay tax at 32.5% only on the slice of income over $37,000. For the slice of income up to $18,200, you pay nothing. For the slice of income from $18,201 to $37,000, you pay 19%. (Medicare levy of 2% of taxable income needs also to be paid.)

You have also not taken into account the small business income tax offset available to individuals and other non-company entities. The offset provides a discount of 5% of the income tax payable on small business income up to a maximum offset of $1,000 a year.

Finally, GST is one-eleventh of the consideration. On $100, that's $9.09 not $11.
 
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  • Thread Starter Thread Starter
  • #6
Just wondered after reading that from ato websites, (image is attached below) So trying to find out what is really gonna happen if your earning goes above 37k.
 

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Jack Malarkey

Well-Known Member
Just wondered after reading that from ato websites, (image is attached below) So trying to find out what is really gonna happen if your earning goes above 37k.
The ATO information you have provided points out that if you have a taxable income from $37,001 to $80,000, the tax payable is $3,572 plus 32.5 cents FOR EACH $1 OVER $37,000. The $3,572 incorporates the nil and 19% rates as explained in my earlier comment.
 
  • Thread Starter Thread Starter
  • #8
Thanks jack fot all your explanation, it certainly helps to get more understanding about those tax cuts.
 

Graham J

Well-Known Member
Keep it simple! When you drive for Uber you earn a revenue, you pay GST, you pay Uber fees and you pay for the running costs of your vehicle. When you throw all those things into the mixing machine there is hopefully something left over for you. This is your profit and is your taxable income from Uber activities. This money is then added to other taxable income you may earn from other sources such as your "real job" or casual job. Your combined taxable income is then taxed at the rates shown in the ATO tax bracket tables.

If you are already working for a wage/salary then your employer takes out tax on your behalf and by and large at the end of the year they will have taken out either too much or not enough and you will either pay the tax man or you will get a return. But unlike your normal salary/wage Uber profit has not had any tax deducted. Depending on your own personal situation you could conceivably be paying 32.5% or even 37% of the Uber profit back to the tax man in personal income tax. Ouch!

Please everyone don't confuse GST with personal income obligations. One is simple, the other more complex
 

ScottieB

Active Member
According to individual income tax table per year from ATO websites, if your earning is more than 37000 a year, you will have to deduct 32.5 cents per dollar you earn when you process your yearly tax return.
Therefor, you will pay 11 cents for GST per dollar and another 20 cents/ 25 cents per dollar for Uber's Surcharge. so thats (32.5+ 11+ 20) cents = 63.5 cents per dollar for older drivers and and (32.5+11+25) = 68.5 cents per dollar for newer drivers.

which means per $100 will leave you only $36.5 for older and $31.5 for newer driver. it doesnt include your fuel cost, car services cost, amenities or meals on duty.

if you are being lucky enough to make this $100 in 4 hours, your hourly income is just above $9 or closer. if you deduct all fuel cost plus other costs, you would hardly make $7 an hour.

so considering that, its no point to drive if you reach your uber earning 37k.

Total rubbish I earn't 84k last financial year from Uber and paid NO income tax due to off setting other taxable claims on investment property, everyone case is depending on all their claims
 

lions44

Active Member
Wow Scottie a $66k tax loss on investment property must have a huge mortgage and enormous depreciation schedule.......all seems a little far fetched, if you have 66k in deductions what do you live on???
 

lions44

Active Member
I am assuming by the way your investment property earns some form of income??.?. I have over $1 million in investment loans and write off only around $25k......me thinks you speak a little rubbish at times
 

lions44

Active Member
You are not being honest Scottie, I have a switched on accountant and either you are telling half the story or just making up stuff to sound good.............if you have an investment property and run it at a 66k loss you must have a $2 mill debt and rent it out for 500 a week.........I can't see how you can service any loan at that sort of loss and not be in a situation where you have negative equity and therefore be subject to a margin call,by your lender.........
 
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