• Ride-sourcing is taxi travel

    The Federal Court has agreed that ride-sourcing is taxi travel within the meaning of the GST law. If the applicant appeals this decision, we will continue to administer the law according to our published advice until there’s a different decision.

    A lot of people are taking up ride-sourcing to earn more income, and some may be your clients.

    Advise your clients with a ride-sourcing enterprise to:

    • keep records
    • have an Australian business number (ABN)
    • register for GST, regardless of how much they earn
    • pay GST on the full fare received from passengers for each trip they provide
    • lodge activity statements
    • include income from ride-sourcing in their income tax returns.

    Drivers are also entitled to claim income tax deductions and GST credits (for GST paid) on expenses apportioned to the ride-sourcing services they have supplied.

    Where we match people who provide ride-sourcing through data matching, we will continue to write to them to explain their tax obligations.

    See also:

    Last modified: 17 Feb 2017QC 51323