Recent cases in the Federal Court have confirmed that any form of ride sourcing (like Uber for example), is considered ‘taxi travel’ when it comes to applying the laws of GST (the Goods and Services tax). The importance behind this decision is that the GST laws are a little different for taxi operators than they are for other businesses in terms of registration.

The result of this decision means that any driver who earns or supplements their income by providing rides will be considered a ride sourcing enterprise and will need to*:

• keep records
• have an ABN (Australian Business Number)
• 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

So if you’re planning on providing ride sourcing, please speak with me about your responsibilities and obligations BEFORE you start – there’s nothing worse than being caught out doing the ‘wrong’ thing at a later point…

Regards

*list provided by NTAA The Tax Advisers’ Voice