Uber's next price drop planned already!

GCUber

Active Member
So the Qld personalised transport review is due very soon and the NSW Transport Minister is also due to announce changes in the CTP premium taxis pay. NSW taxis pay over $8500 per year CTP and Qld taxis pay over $6500 per year CTP.
If both states drop taxi CTP to an amount like ride share and then taxis drop their meter and tariff rates by say 10-15% then Uber will be required to drop our rates by another 10-15% to keep below taxis.
Also remember Uber does not charge GST on fares in Qld yet. So that means another 10% increase in our Qld Uber fares above the current rates.
Would you still drive if taxis dropped their rates and uber dropped ours by another 10-15%. Just thinking it has happened overseas.
 

Sameshiftdiffday

Well-Known Member
Why do you think taxis will drop their rates ?
Any reductions in CTP will make up the lost revenue gone to Uber, and be necessary to create long term stability. The customers who chase the cheapest price have already moved to Uber, and reading many of your posts you can have them! The long term is about providing excellent service AND be able to charge for it - a fact that must be frustrating the average uber driver who drives for a $1 / KM with no tips. But then again the inability for some to see the big picture and move away from their own self serving viewpoints is even more difficult !
 

GCUber

Active Member
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  • #7
LevelX the GST point I am trying to make is that drivers currently pay the GST but uber do not charge the rider the extra 10%. If uber and ride share becomes legal in Qld then they will have to increase their charge to riders by the GST 10%.
I disagree taxis will i believe lower their rates to become competitive with uber rates. This has happened overseas already in selected cities. The result is uber then drop their rates even more and/or they launch uber pool and heavily promote uber pool.
The new NSW CTP policy for ride share will make it very costly for those drivers doing 100 hours per week.
 

UberSyd

Well-Known Member
When the ato changed its ruling, Uber increased prices by 10% to cover the 'GST' costs passed on the driver's .

http://m.theage.com.au/victoria/uber-hikes-prices-by-10-per-cent-20150807-giubko.html

So it was factored in, price drops are just price drops, gst or not
Uber introduced a bullshit winter discount of 10 percent that was supposed to be temporary before GST came in ... after GST came they acted like they raised fares for GST but really was just putting the price back to what is was supposed to go back too... and they probably only did that because of all the upset emails they were getting and probably a lot of drivers stopped driving on August 1st.

This was in Sydney ...

but either way Sydney still has it good compared to everywhere else
 

GCUber

Active Member
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  • #11
I agree with the post about Victoria but in Queensland Uber have never charged the rider for GST. If you look at the uber website GST is added for NSW, Victoria, WA, ACT and WA. None for Qld.

My point is if it's legalised in Qld then GST will need to be added to the total fare so in effect uber fares rise by 10%.

Qld is currently under a trial (my opinion permanent) where they dropped fares by 20% in February 2016 that's on top of the 10% fare drop in June 2015. So already they have dropped fares by 30% in Qld since they started. If they need to add 10% for GST and then remain 30-40% below taxis when the new CTP premiums come in if they come in it means taxis and uber will be within about 10-15% of each other.

As for if NSW CTP happens. It will become policy very soon and implemented almost immediately, so watch this space driving for uber will become a lot more expensive and driving taxis a lot cheaper. The government want to reduce the costs to consumers (since that's what uber says means better competition and services to the public). But it will mean less income for uber drivers since fare prices must come down to compete with taxis and HC.
 
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LevelX

Well-Known Member
So if taxis drop their rates whos going to take the hit the owner or the driver?
Both, as most taxis are run in a 50/50 sharing arrangement being owner/driver.

My point is if it's legalised in Qld then GST will need to be added to the total fare so in effect uber fares rise by 10%.
GST is built in to the price of Uber, Uber being Uber, didn't want to collect it for the ATO/GOV, so the ATO/GOV changed the laws and forced drivers to pay GST from the first dollar earned to be inline with taxi drivers.

So already they have dropped fares by 30% in Qld since they started
Same in VIC..... your point? we have had two 15% cuts and still need to pay GST too.

If they need to add 10% for GST
Uber isn't collecting GST, they need to add nothing. GST is built into the prices as drivers have to pay GST.

So based on VIC rates, think of it this way

$1/km is really 91c EX GST

and

32c/min is really 29c/min EX GST.

Booking fee of $2 is really $1.82 EX GST.
 

Ben Hall

Well-Known Member
GST is built in to the price of Uber, Uber being Uber, didn't want to collect it for the ATO/GOV, so the ATO/GOV changed the laws and forced drivers to pay GST from the first dollar earned to be inline with taxi drivers.
there was not a law change to force drivers to pay GST from the first dollar to be inline with taxi drivers. Uber falls under the definition of Taxi driver that the ATO uses
 

LevelX

Well-Known Member
there was not a law change to force drivers to pay GST from the first dollar to be inline with taxi drivers.
Wrong Ben, The law wording was changed to include the wording 'ride sharing drivers', the result of that is that Uber drivers now like taxi drivers have to pay GST from the first dollar earned. Before this change, Uber drivers didn't have to pay GST unless they earned over $75k etc.

So yeah, it was a 'law change'.
 

Instyle

Well-Known Member
Moderator
Ride-sourcing services (also known as ride-sharing, ride-booking, taxi or ride-hailing services) are considered to be providing taxi travel under the GST law and have tax implications for those involved. Our role (ATO) is to interpret the tax law and to provide advice to the community. Our advice is that drivers providing ride-sourcing services are providing taxi travel under GST law.

No changes to GST legislation have been made, merely the "recognition" by research from the ATO that Ride-sourcing drivers are carrying on an enterprise by providing taxi travel. If drivers claim they are not carrying on an enterprise then you must be a casual employee or Uber needs to stop advertising for independent contractors looking to run their own business.
 

LevelX

Well-Known Member
No changes to GST legislation have been made, merely the "recognition" by research from the ATO that Ride-sourcing drivers are carrying on an enterprise by providing taxi travel.
Its splitting hairs.... The 'recognition' or definition was changed, to include 'ride sharing'. The impact of this change was before the change, ride sharing drivers didn't have to pay GST until $75k, now they have to pay it from $1.

So in a round about way the GST law was updated/changed as the definition was changed that had a impact on a certain group of users.

Either way, its a splitting hair issue, the end result is a change was made, that now means Uber drivers have to pay GST from the first $1 earned. Call it what you think it should be called, but a change was made.
 

PhantomDriver

Well-Known Member
Its splitting hairs.... The 'recognition' or definition was changed, to include 'ride sharing'. The impact of this change was before the change, ride sharing drivers didn't have to pay GST until $75k, now they have to pay it from $1.

So in a round about way the GST law was updated/changed as the definition was changed that had a impact on a certain group of users.

Either way, its a splitting hair issue, the end result is a change was made, that now means Uber drivers have to pay GST from the first $1 earned. Call it what you think it should be called, but a change was made.
As far as I am concerned they can have one or the other
GST and No fines or No GST and fines
I certainly will not be entertaining both
 
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