• Ride-sourcing and tax

    Ride-sourcing is an ongoing arrangement where:

    • you (a driver) make a car available for public hire for passengers
    • a passenger uses a website or app provided by a third party (facilitator) to request a ride, for example Uber, GoCatch and others
    • you use the car to transport the passenger for payment (a fare).

    What you need to do

    Similar tax obligations for taxi drivers apply to ride-sourcing providers.

    The following are the basics you need to know and do for tax purposes, including:

    • keeping records of all your expenses and income (you can use the myDeductions tool in our app)
    • apportioning expenses to the time you are providing a ride-sourcing service.

    Income tax

    GST – if you have a ride-sourcing enterprise

    • Include the income you earn in your tax return
    • Only claim deductions related to transporting passengers for a fare

     

    • Get an Australian business number
    • Register for GST regardless of how much you earn (ride-sourcing is taxi travel for GST purposes)
    • Pay GST on the full fare
    • Only claim GST credits related to transporting passengers for a fare
    • Lodge business activity statements
    • Know how to issue a tax invoice (you need to provide one for fares over $82.50 if asked)

     

    Use our checklist to help you get it right

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    Last modified: 14 Sep 2017QC 52945