GST for taxi drivers
You must keep proper records for all your income and expenses for five years after they were prepared, obtained or the transaction was completed, whichever is later.
If you are a taxi operator or taxi plate owner, you may have more complex issues to account for (for example, if you sell or transfer a taxi plate). Ask your tax agent or accountant for advice about your individual circumstances.
How to complete your activity statement
For practical advice to help you correctly report business income and expenses for goods and services tax (GST), refer to our instructions below..
To help you work out the amounts to show at 1A and 1B you can download the GST calculation worksheet for BAS.
If you have other sources of business income apart from taxi driving, you must include income and expenses from your other activities on your activity statement.
End of attention
Correctly reporting business income and expenses for GST
Once a year you can choose how you will report your GST by placing a cross in one of the following three boxes:
- Option 1: calculate GST and report quarterly
- Option 2: calculate GST quarterly and report annually. Option 2 is not available for taxi drivers
- Option 3: pay GST instalment amount quarterly on your activity statement. If you choose Option 3, we will send you an Information Report to complete.
In section G1 Total sales (G1 requires 1A completed) include all your income from:
- taxi takings (cash, credit cards, Cabcharge etc)
- any WorkCover payments you have received.
- In section G11 Non-capital purchases include:
- the bailment payment or shift rent that you pay the taxi operator
- fuel, oil and car washes you purchase
- insurance payments
- uniforms (where they are normally tax deductible)
- business telephone expenses
- accounting fees
- payments without GST in the price (such as bank fees and license fees).
Section 1A GST on sales or GST instalment is the amount of GST for all your business income. This will normally by one eleventh of the figure at G1.
Section 1B GST on purchases is the amount of GST you paid for all your business expenses.
You can choose how you would like to work out your PAYG instalment by placing a cross in one of the following two boxes:
- Option 1: Pay a PAYG instalment amount quarterly
- Option 2: Calculate PAYG instalment using income times rate
If you choose Option 1 to report your PAYG, your instalment is the amount printed at T7.
If you choose Option 2 to report your PAYG, multiply your figure at T1 by the percentage rate printed at T2, and write the result at T11. This is your PAYG instalment amount.
For section T1 PAYG instalment income, if you choose Option 2 to report, include all your business income from G1 (less any GST) and any income you earn from shares or investments for the period covered by the activity statement.
Write your PAYG instalment amount from either T7 or T11 in section 5A PAYG income tax instalment.
9 = 8A - 8B
The figure at Section 9 Your payment or refund amount is the amount you must pay, less any payments you’ve made using your activity statement payment card. If the result is a negative number, this is your refund amount.
You must sign and date the form and write your payment amount, less any pre-payments you’ve made on the payment advice slip.
How to pay using your activity statement payment card
An activity statement payment card makes it easier for you to pay your activity statement amounts when they are due. You cannot use it to pay other types of debt, for example, income tax.
Who can use a payment card
Payment cards are only available to people in the taxi industry, including taxi, hire car and limousine drivers.
You can use a payment card if you are:
- an accredited taxi, hire car or limousine driver
- accredited with one of the taxi industry's state or territory regulatory bodies, and
- registered for GST.
Using the payment card
You can use a payment card instead of paper payment advice slips.
You can make payments towards your liability using a payment card either:
- at any post office
- via BPAY® through your bank or financial institution.
The BPAY biller code is 75556 and your customer reference number is the EFT code shown on the front of the payment card.
If you make a BAS payment by cheque through the mail, you must send a paper payment advice slip with the payment. Do not send the payment card to us with your payment.
Australia Post's Billpay service
You can present the payment card to any post office to make deposits by:
- money order
- EFTPOS (from a cheque or savings account).
If you pay in cash, a $3,000 limit applies. If you pay by EFTPOS, transactions from your cheque or savings account are limited to any cash withdrawal limits set by your bank or financial institution. You cannot pay using a credit card.
When can you use the payment card
You can use the payment card as often as you like. However, you must record your payments to work out the balance to pay when your activity statement is due. A smaller number of deposits may make this task easier.
You must still complete your activity statement
If you complete your own activity statement, work out how much you must pay then reduce this amount by the amount you have already paid for that activity statement period. You must pay any amount left by the due date.
Example: calculate and report GST quarterly option
Total sales at G1
GST on sales at 1A
Total purchases at G11
Less GST on purchases at 1B
BAS payment amount at 9
Less payment card deposits for period
Amount to pay when BAS is due
If you use a tax agent or accountant to prepare your BAS, you can still use the payment card. Just tell them the date and amount of each payment you have made for that BAS period.
Why use the payment card
Making regular advance payments (particularly when your income is higher than normal) makes it easier to pay the full activity statement amount you owe when it is due.
If you don’t wish to use the payment card
You don't have to use the payment card if you don't want to. The card simply provides you with another way of making activity statement payments.
Using your payment card for another business
If you drive taxis and also run another business, you can make advance payments for your other business if it has the same ABN as your taxi driving business. You cannot use the card to make a payment for business activities with a different ABN to your taxi driving business.
Access to your information
No one can use your payment card to access your tax information. The card can only be used to make payments to your BAS account, so it has no value to anyone else. There is no need for you to sign the card.
How much you have you paid
To find out how much you have paid towards your next activity statement you can phone us.
If you pay too much
If you pay more than you owe, you can ask us to refund any amount greater than the amount you must pay. If you have any other debts to us, or any child support debts, we will apply any overpayments to those debts first and refund any surplus overpayments to you.
If your employer pays your GST
The payment card will not affect any existing payment arrangements you have with your company. Also, you do not have to give the card to your company.
You can still use the payment card if you have the same ABN even if you change either:
- taxi companies
- your driving arrangements.
How to get a replacement payment card
Phone us to obtain a replacement card if your payment card:
- is lost, stolen or damaged
- doesn't work even if it is not damaged
- the name printed on your card is not correct.
You will receive your replacement card about four weeks after you order it. However, if the name on your card is not correct, you can still use it to make payments if you want to.
How we can help
Abstract: Practical advice to help taxi drivers correctly report business income and expenses for goods and services tax (GST).