Uber Payment - GST, income and expenses example

Paul Collins

Well-Known Member
Just to give a single example....

1. Whatever the rider pays is GST inclusive. Fare, surge, tolls, cancellations, booking fees etc and GST is 1/11 of that total.

2. Uber payments include income that is GST free and must be counted towards your taxable income. They also have GST free expenses.


Uber_GST_example.jpg
 

UberDriverAU

Well-Known Member
Uber payments include income that is GST free and must be counted towards your taxable income.
That is of course your opinion Paul. I'm still waiting for someone to tell me exactly what has been provided to Uber to earn these 5 cent "Tax on Fee" amounts. Noone has been able to come up with an answer to date. That's a surefire indication that it's not genuinely income.
 

Paul Collins

Well-Known Member
The 5 cents is gst free income. Verified by several accountants and the ATO over a phone call. You get paid it and it is accessible income.
 

MyRedUber

Well-Known Member
The 5c is the GST component of the 55c Booking Fee.
55c is your income. 50c which you pay back to Uber is an expense.
Leaves you with 5c GST which you need to pass on to the ATO in full.
 

Who is John Galt?

Well-Known Member
.
Assuming you have provided Über with an ABN, which is optional.
If you haven't, then it is a different equation. Isn't it?

edit reason: grammar
.
 
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UberDriverAU

Well-Known Member
The 5 cents is gst free income. Verified by several accountants and the ATO over a phone call. You get paid it and it is accessible income.
Actually, no you don't get paid it. You neither receive it directly, nor does someone else receive it on your behalf. Did you mention that fact to these accountants or the ATO?
Assuming you have provided Über with an ABN, which is optional.
If you haven't, then it is a different equation. Isn't it?
Yes, the equation is different for those who chose not to give their ABN. We don't get those 5 cent "Tax on Fee" payments, but can claim GST credits for all of Uber's fees instead.
 

UberDriverAU

Well-Known Member
Here is an example of what I'm talking about:

Fare Breakdown.png


(1) I received $7.00 from the rider (the rider's payment to Uber, where Uber is acting as my agent).
(2) I received $5.21 from Uber (direct payment from Uber to myself).
(3) Uber therefore took $1.79 ($7.00 - $5.21) in fees.
(4) Of that $1.79, $1.29 was the service fee.
(5) Of that $1.79, $0.50 was the booking fee.

So where and when did I receive an additional 5 cents that should be counted as assessable income?

Edited for clarity.
 
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Paul Collins

Well-Known Member
Here is an example of what I'm talking about:

View attachment 159987

(1) I received $7.00 from the rider (the rider's payment to Uber, where Uber is acting as my agent).
(2) I received $5.21 from Uber (direct payment from Uber to myself).
(3) Uber therefore took $1.79 ($7.00 - $5.21) in fees.
(4) Of that $1.79, $1.29 was the service fee.
(5) Of that $1.79, $0.50 was the booking fee.

So where and when did I receive 5 cents that should be counted as assessable income?
The 5 cents is paid by Uber to the driver and is taxable income. It is what it is. The booking fee is 55cents not 50 cents as you detail.
Ring the ato and tell them Uber paid you 5 cents and see what they say.

Two accountants have looked at the above and agree.

6CE5AA22-6066-4291-8187-4E8BC690D840.png
 
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Rippleside

New Member
Here is an example of what I'm talking about:

View attachment 159987

(1) I received $7.00 from the rider (the rider's payment to Uber, where Uber is acting as my agent).
(2) I received $5.21 from Uber (direct payment from Uber to myself).
(3) Uber therefore took $1.79 ($7.00 - $5.21) in fees.
(4) Of that $1.79, $1.29 was the service fee.
(5) Of that $1.79, $0.50 was the booking fee.

So where and when did I receive 5 cents that should be counted as assessable income?

You got 5.16 which is 80% of the fare @6.45
And you got 5 cents of the 55 cents booking fee.

Add them up you get 5.21. Which is what you received.
 

UberDriverAU

Well-Known Member
The 5 cents is paid by Uber to the driver and is taxable income. It is what it is. The booking fee is 55cents not 50 cents as you detail.
Ring the ato and tell them Uber paid you 5 cents and see what they say.
That's the whole point Paul, at no point does Uber pay the driver an additional 5 cents. If I called anyone up and told them that "I got paid an extra 5 cents, should I include this in my income?" they would probably say yes. If you ask a loaded question you just might get the answer you seek. The fact remains, that Uber only takes 50 cents from the 55 cent booking fee. Anyone who can do simple mathematics is overqualified to see that this is the case.

You could throw in the following:

Silly Uber Fee (Deduction): -$100.00
Silly Uber Fee (Refund): +$100.00

and it would not increase the amount you receive, and nor would the +$100.00 be "income".
You got 5.16 which is 80% of the fare @6.45
And you got 5 cents of the 55 cents booking fee.

Add them up you get 5.21. Which is what you received.
Leaving 5 cents behind isn't the same as giving you an extra 5 cents.
 

Jordan23

Well-Known Member
You asked earlier:
So where and when did I receive 5 cents that should be counted as assessable income?

Then when someone pointed out how you did receive 5 cents you countered with:
Leaving 5 cents behind isn't the same as giving you an extra 5 cents.

What on earth are you asking then? You admit and deny receiving the 5 cents in same thread. Leaving behind and receiving income is basically the same thing. You want to argue semantics with the ATO go ahead my friend knock your self out.
 

UberDriverAU

Well-Known Member
You asked earlier:


Then when someone pointed out how you did receive 5 cents you countered with:


What on earth are you asking then? You admit and deny receiving the 5 cents in same thread. Leaving behind and receiving income is basically the same thing. You want to argue semantics with the ATO go ahead my friend knock your self out.
Uber leaving 5 cents behind that the rider paid isn't the same thing as Uber paying you an additional 5 cents. The same 5 cents is being counted as income twice.

When you break the 55 cent booking fee down paid by the rider, 50 cents of it is assessable income, and 5 cents is a GST liability. There isn't an extra 5 cents of income as Paul claims, because the driver simply isn't paid an extra 5 cents. Uber takes 50 cents which you can claim as a deduction and leaves you 5 cents to cover the GST liability.
 
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Chrome

New Member
Paul as far as I can see the Booking Fee is a charge that Uber places on the rider.
Booking fee is actually a fee between Uber & the rider
Why on earth should we have to include the 5 cents in our income ?
I think this is Uber placing another GST fee onto drivers
 

UberDriverAU

Well-Known Member
Paul as far as I can see the Booking Fee is a charge that Uber places on the rider.
Booking fee is actually a fee between Uber & the rider
Why on earth should we have to include the 5 cents in our income ?
I think this is Uber placing another GST fee onto drivers
The way it needs to be treated atm is Uber is charging us, and we are passing that charge onto the rider with no markup. There is no reason for us to include the 5 cents of the rider's payment that Uber leaves behind as additional income.

Two accountants have looked at the above and agree.
Paul, get these two accountant friends to join up here, and once it's properly explained what's going on let's see if they still agree with you. A passing comment on Facebook isn't them offering you considered professional advice. I also thought you were going to get a Public Ruling from the ATO? Again, you would need to properly explain all of the circumstances around the booking fee before they would issue such a binding ruling.
 

Jojo Mojo

New Member
Ive only been ubering for three weeks and now required to submit a BAS . Can anyone help with this ? Accountant wants $220 and i only work part time :frown:
 
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