uber service fee increase

imacie

Active Member
hey guys i finally got myself sorted to drive after realising that its just not possible with rental cars and signed back into uber and they have increased the service fee from 25% to 27.5% is this across the board for everyone?
 

Where to Mister?

Well-Known Member
No. As a driver, you are required to get an ABN and register for GST.
If you enter your ABN on your driver profile (on the Invoice Settings Page) and tick the registered for GST Box, you will pay only 25% to Uber. If you don’t, Uber are required to withhold 10% GST (which takes it up to 27.5%) and remit that to the ATO.
 

Who is John Galt?

Well-Known Member
No. As a driver, you are required to get an ABN and register for GST.
If you enter your ABN on your driver profile (on the Invoice Settings Page) and tick the registered for GST Box, you will pay only 25% to Uber. If you don’t, Uber are required to withhold 10% GST (which takes it up to 27.5%) and remit that to the ATO.

Don't give Über your ABN if you are registered. There are plenty of reasons for leaving that work for them and claiming it back as a GST credit.
UberDriverAU has written about this extensively. Check his threads and reasoning. It is sound.
You would have rocks in your head to supply Über with your ABN.

edit reason: grammar
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UberDriverAU

Well-Known Member
hey guys i finally got myself sorted to drive after realising that its just not possible with rental cars and signed back into uber and they have increased the service fee from 25% to 27.5% is this across the board for everyone?
Whilst they are taking more, you aren't actually paying a higher service fee. What you're paying is their 25% fee + 2.5% GST. You will be able to claim a 2.5% credit for the GST that Uber pays on their service fee, so once you lodge and pay your BAS the net amount you will have paid Uber is the 25% that you are expecting. Uber has proven to be very bad at keeping track of things, so you will be worse off if you give them your ABN because you will need to waste a lot of time double checking everything they do to ensure they've done it correctly, and the amount of time it takes for them to fix simple mistakes is unbelievable.

Uber are required to withhold 10% GST (which takes it up to 27.5%) and remit that to the ATO.
Believe it or not, businesses aren't required to pass on GST to customers. For the month of July my service fee was 20% inc GST, and from the 1st of August it changed to 22% inc GST. Uber chose to absorb the GST for July, and pass it on after that.
 

KenBruceHasGoneMad

Well-Known Member
Don't give Über your ABN if you are registered. There are plenty of reasons for leaving that work for them and claiming it back as a GST credit.
UberDriverAU has written about this extensively. Check his threads and reasoning. It is sound.
You would have rocks in your head to supply Über with your ABN.

edit reason: grammar
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Ohh, can't you see the writing on the wall.
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Come on mate, stop peddling BS..
ABN and gst bas payments are mandatory law throughout Australia ,for rideshare.

Get serious, now..

Cowboy days are over.
In no time ,pal , your little app won't work by law, without an uploaded and active ABN..

and back taxes...
Don't forget them

Last I checked, unfortunately, Adelaide is part or our great nation...

Same law buddy.

ATO, is kinda federal, last I looked...

But hey, you get decals ,soon..

Lol.

Whilst they are taking more, you aren't actually paying a higher service fee. What you're paying is their 25% fee + 2.5% GST. You will be able to claim a 2.5% credit for the GST that Uber pays on their service fee, so once you lodge and pay your BAS the net amount you will have paid Uber is the 25% that you are expecting. Uber has proven to be very bad at keeping track of things, so you will be worse off if you give them your ABN because you will need to waste a lot of time double checking everything they do to ensure they've done it correctly, and the amount of time it takes for them to fix simple mistakes is unbelievable.


Believe it or not, businesses aren't required to pass on GST to customers. For the month of July my service fee was 20% inc GST, and from the 1st of August it changed to 22% inc GST. Uber chose to absorb the GST for July, and pass it on after that.
Perth and Adelaide driver talking bush accounting...hilarious.

In the Eastern states its all fancy data digital thingy stuff... Not cash in hand.

You'll learn the hard way...

Hey, but you get decals...
 
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