GST

PerthMickey

New Member
Total revenue earned after 20% or 25% uber share is your revenue as per the statement you receive from uber.

GST will be calculated on that (Which is the final amount hitting your bank account)
 

UberDriverAU

Well-Known Member
Total revenue earned after 20% or 25% uber share is your revenue as per the statement you receive from uber.

GST will be calculated on that (Which is the final amount hitting your bank account)
That's not correct. GST is calculated on the full fare, not your payout.
 

PerthMickey

New Member
That's not correct. GST is calculated on the full fare, not your payout.
What is taxable income?
Your taxable income is the income you have to pay tax on. It is the term used for the amount left after you have deducted all the expenses you are allowed to claim from your assessable income.

Assessable income – allowable deductions (Commissions/Uber Fee) = taxable income
 

UberDriverAU

Well-Known Member
What is taxable income?
Your taxable income is the income you have to pay tax on. It is the term used for the amount left after you have deducted all the expenses you are allowed to claim from your assessable income.

Assessable income – allowable deductions (Commissions/Uber Fee) = taxable income
You do realise that GST and Income Tax aren't the same thing? GST is payable on the full fare (ie. before Uber's fee), and Income Tax is payable on your revenue less deductible expenses.
 

PerthMickey

New Member
Uber fee is a deductible expense so When you file your BAS you can show it as a deductible expense cause you incurred it in running your business.
 

LevelX

Well-Known Member
anyone know how to calculate GST on ridesharing ?
In a very high level nut shell its as follows

Total Uber Fare amount (not payout figure, but FARE total including surge) + Toll amount paid to you / 11 = GST Owed

Toll Amount paid / 11 = GST input credits + (also add any other GST input credits here, mints, water etc)

GST Owed - GST input credits = GST payable to Gov.

So a example

$100 fare total (including surge)
$10 tolls paid
= $110 / 11 = $10 GST owed.

But you have a GST input credit from the tolls, so thats
$10 tolls paid / 11 = $0.91 GST input credit.

Amount owed to gov is $10 = $0.91 = $9.09

Hint, while it looks like you could SKIP the tolls in this and just work on GST on the fare total, BUT the figures reported to the gov will then not match up, and you'll be flagged. ATO is going to be focusing on Uber/Airbnb people this year!

ie gov knows you got paid $110 from Uber - commission. But you're only claiming GST is payable on $100, with no input credits. Which is different' to claiming GST payable on $110, with GST input credits, even though the payment outcome is the same! Urg Tax....
 

lui6155

Well-Known Member
You do realise that GST and Income Tax aren't the same thing? GST is payable on the full fare (ie. before Uber's fee), and Income Tax is payable on your revenue less deductible expenses.
Concur with UberDriverAU and given the number of times the question of gst and income tax is raised my suggestion to my fellow brethren is:
1) keep good records of your income and expenses and correctly account for the gst
2) go to a tax accountant for ur next tax return (HR block should be ok and at the same time get them to review the GST...if they aren't sure sack them as they shouldn't be doing the job.)
Chaps its clear that many are struggling in this space/don't read or understand the helpful advice on this forum but remember u are operating ur own business and so are responsible for correctly applying the law including tax law.
 

UberPig

Well-Known Member
pay them mine and ubers GST and wave goodbye....................... Im lucky I can live on the 18k thresh-hold so wont be paying income tax.........
 

Sydney Uber

Well-Known Member
The ATO website is quite clear. GST must be paid on the full fare. GST credits can be claimed on all business expenses that issue a legal tax invoice. Unfortunately the invoices that Uber issues do not comply, therefore GST credits can not be claimed on commission

That is the clearest advice I've read- thanks Superman!
 

Instyle

Well-Known Member
Moderator
Everywhere. It was in response to the ATO saying we all had to pay GST from the first dollar in revenue.
Uber also reduced fares just before they reinstated them as they were well aware of the tax ruling before it was publicly released. I wouldn't call a minus (-) and plus (+) an increase, just neutral, nothing, nada

Despite reinstating the previous reduction, drives were still worse off.
 

Sydney Uber

Well-Known Member
I would like to hear what a judge in court would decide if I was paying more than 10% GST on my income from my business, how on earth can that be fair. I aren't driving anymore so I don't really care, but if I was I would only pay 10 % on what I take in and they can lock me up for that it's a principle thing and I would be prepared to go to court on this matter GG vs ATO. What other Sole trader pays more than 10% GST off there income? I receive $100 in my bank account from Uber, I pay $9.09 GST to ATO less Tax imput credits. why should I pay $11.36 GST (less credits)
So Lui6155 how does UberdriverAU get the Uber portion off GST back? This is simply not fair and right, even if is ATO rules!
Uber ducks its Australian tax responsibilities, doesn't issue compliant tax invoices, doesn't advise drivers they should get an ABN, is domiciled in the Netherlands to avoid Australian Corporate Tax. It's message is loud and clear, we come, we take what we want, where we want to, pay nothing towards the wider community and the costs of administering a civilised society and leave underpaid drivers to pay 12.5% GST because they can.
 

Instyle

Well-Known Member
Moderator
Uber ducks its Australian tax responsibilities, doesn't issue compliant tax invoices, doesn't advise drivers they should get an ABN, is domiciled in the Netherlands to avoid Australian Corporate Tax. It's message is loud and clear, we come, we take what we want, where we want to, pay nothing towards the wider community and the costs of administering a civilised society and leave underpaid drivers to pay 12.5% GST because they can.
Minus the last word "can" and insert "will"
 

haldriver

Well-Known Member
Total revenue earned after 20% or 25% uber share is your revenue as per the statement you receive from uber.

GST will be calculated on that (Which is the final amount hitting your bank account)
Wrong.

We collect GST and can deduct GST expenses from it. Uber don't pay GST so we cannot deduct uber commission from it.

Fare went from $1.30 to $1.10 then to $1.15 when ATO said that we must pay GST (Uber figured strangely that 5 cents would cover GST collected).
Uber then reduced fare to $1.00 a km a few months later. The GST we collect on $1.00 is 9.09 cents per km so we are only driving for 91 cents per km.
 

matPORTS

Well-Known Member
The best advice I can give anyone is to engage a registered tax accountant. We are all essentially running a small business. You would be crazy not to. Accountants fees are tax deductible as well.

If you cant afford, or don't want to, pay an accountant then you shouldn't be operating a business. That's just my two cents worth.
 

Potsy

Well-Known Member
Well I did use an accountant once for Ubers BAS statement and his fees were more than the GST I paid. Doesnt make any sense to me.

You need to be making money to use an accountant. Tell me how many people are really making any money with uber. I doubt if I'll even break the tax free threshold this year.
 

UberDriverAU

Well-Known Member
Well I did use an accountant once for Ubers BAS statement and his fees were more than the GST I paid. Doesnt make any sense to me.

You need to be making money to use an accountant. Tell me how many people are really making any money with uber. I doubt if I'll even break the tax free threshold this year.
There aren't many. You need to do a lot yourself rather than paying other people to do it for you. If you are not prepared to wash your own car and do your own BAS, that's not a good start. Being able to do relatively simple maintenance like an oil change yourself also helps greatly.
 
Top