If you provide ride-sourcing services, you may be able to claim GST credits for business purchases you make, such as:
- fuel
- tolls and parking fees
- registration and insurance
- service fees or commission charged by the platform
- a depreciating asset.
GST credits are claimed when you lodge your BAS.
You need to apportion your expenses, and the GST on those expenses, between personal and business use. You can only claim a GST credit for the business portion of the expense.
If you have claimed a GST credit for an expense, you can only claim a deduction for the expense minus the GST in your income tax return.
Example: How to apportion and work out your GST credit
Hugo uses his car 10% for ride-sourcing and 90% for private purposes. Hugo has the following expenses in his first month of driving:
- a new car to use for ride-sourcing services for $33,000 (including $3,000 GST)
- $1,100 for fuel (includes $100 GST)
- $2,200 for a service (includes $200 GST)
The total GST on his expenses is $3,300.
After apportioning his expenses for business and private use, Hugo can claim a GST credit of $330 (10% of $3,300).
End of exampleSee also:
Service fees or commission
You may be charged GST on service fees or commission charged by a GST-registered platform. If this is the case, you can claim a GST credit if you're registered for GST.
If the service the platform provides is completely or partly from outside Australia, and you haven't provided the platform with your ABN and a declaration that you are registered for GST, they must assume that you’re not registered, and GST will be applied.
Expenses paid for by passengers
There are some expenses that are paid for by passengers, for example tolls. You are entitled to claim a GST credit for the GST included in the price of expenses paid for by your passengers.
John takes a passenger and pays a toll of $2.20 including 20c GST. John can claim a GST credit of 20c.
With a fare of $22.00 (including $2.00 GST), the passenger pays a total charge of $24.20, including tolls.
John's GST liability on the fare is $2.20, including 20c relating to the toll.
His GST liability on the 20c toll is offset by the 20c GST credit.
End of examplePurchasing or upgrading a car
When purchasing or upgrading a car for ride-sourcing activities, you need to have genuinely been in business at the time of purchase to claim a GST credit. This means you need:
- an ABN and to be registered for GST at the time of purchasing the car
- to have made your first ride-sourcing trip before or within a reasonable amount of time after purchasing.
You cannot backdate your registration to claim the GST on a new car if you don't meet this criteria.
Generally, if you purchase a car and the price is more than the car limit, the maximum amount of GST credit you can claim is one-eleventh of the car limit amount.
You can't claim a GST credit for any luxury car tax (LCT) you pay when you purchase a luxury car, regardless of how much you use the car in carrying on your business.
In general, the value of a car includes the value of any parts, accessories or attachments supplied or imported at the same time as the car.
See also:
If you provide ride-sourcing services, you may be able to claim GST credits for the GST in purchases you make directly related to your ride-sourcing income.