Ride-sourcing, sometimes referred to as ride-sharing, is an ongoing arrangement where:
- you (a driver) make a car available for public hire for passengers
- a passenger uses a third-party digital platform, such as a website or an app, to request a ride, for example, Uber, Shebah, or GoCatch
- you use the car to transport the passenger for payment (a fare).
Income tax applies to your ride sourcing income. Ride-sourcing is also subject to goods and services tax (GST). All ride-sourcing drivers need to have an Australian business number (ABN) and be registered for GST.
For GST you need:
- an ABN
- to register for GST from the day you start, regardless of how much you earn
- to pay GST on the full fare
- to lodge business activity statements (BAS) monthly or quarterly (you can't choose to lodge annually)
- to know how to issue a tax invoice (you need to provide one for fares over $82.50 if asked)
For income tax you need to:
- include the income you earn in your income tax return
- only claim deductions related to transporting passengers for a fare, including apportioning expenses limited to the time you are providing a ride-sourcing service
- keep records of all your expenses and income (you can use the myDeductions tool in our app).
Find out about:
- Reporting and paying GST
- Tax invoices
- Income and deductions for ride-sourcing
- Record keeping
If you speak a language other than English, you can read our guide, Ride-sourcing – the basics, in the following languages:
Media: There's more to ride-sourcing than having a car
https://tv.ato.gov.au/ato-tv/media?v=bd1bdiub7isr97External Link (Duration: 00:49)