• GST and taxis

    Fares paid to taxi drivers by passengers include goods and services tax (GST), so if you're a taxi driver, and you're not employed by someone else, you must register for GST and pay your net GST quarterly. The net GST amount is the GST included in all fares that you've taken, minus any input tax credits for the GST included in your business purchases, including bailment payments.

    You can use a payment card to make more frequent payments of smaller amounts, so your quarterly GST payment is easier to manage.

    You may have to use the cents per kilometre earnings rate in preparing your BAS if you don't have proper records of your earnings.

    If you sell a taxi licence or plate the transaction may be GST-free.

    If you provide ride-sourcing services, for example you drive for Uber, this advice does not apply to you.

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      Last modified: 22 May 2017QC 17588