GST issues registers

Taxi Industry

Pricing issues

Updated Issue ATO decision
20/12/00 Did fares go up by exactly 10% from 1 July 2000?

Non-interpretative - straight application of the law.

The GST-inclusive tariffs were determined by the state and territory regulators. The regulators were required to take into account savings made as a result of the removal of various indirect taxes. From 1 July 2000 the GST included in taxi fares will always be one-eleventh of the total fare despite the fact that fares may not have increased by 10%.
20/12/00 Who ultimately has to pay the GST?

Non-interpretative - straight application of the law.

The passenger ultimately pays the GST. The GST amount is incorporated into the price paid by the passenger as shown on the metered fare.
27/10/03 Is the GST included on the meter or added to the price shown on the meter after the journey?

Non-interpretative - straight application of the law.

After 1 July, all prices include GST. For taxis, this means the fare shown on the meter includes GST. Per kilometre rates and taxi meters were changed from 1 July 2000.
27/10/03 Does GST affect a driver's take home earnings?

Non-interpretative - straight application of the law.

The GST is a tax borne ultimately by consumers of goods and services. The GST was introduced as one element of numerous changes to the tax system. These changes included the removal of many indirect taxes. This meant that while some prices may have risen, others fell once the GST commenced on 1 July 2000. Businesses had to set their prices from 1 July 2000 to take into account all of the changes to the taxation system, not just the introduction of GST.

In the case of taxis, the various state and territory government regulatory bodies were responsible for ascertaining the fare increase in each state or territory.

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© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).