GST and taxis

Fares paid to taxi drivers by passengers include goods and services tax (GST). If you're a taxi driver and you're not employed by someone else, you must:

• register for GST – regardless of how much you earn
• only claim GST credits related to your work
• lodge business activity statements (BAS) monthly or quarterly (you can't choose to lodge annually)
• pay your net GST

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 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.

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

Find out about

• Completing your BAS
• Taxi cents per kilometre earnings rate
• Selling taxi licences and plates
• Record-keeping requirements

See also

• Ride-sourcing
• Registering for GST