Uber Drivers and GST

On the rise of Uber driving in Australia, in 2015 the Tax Office publicly identified a high proportion of GST non-compliance.

The requirement to register for GST was challenged by Uber, but was unsuccessful in court. The Tax Office provided an initial deadline of 1 August 2015 for Uber drivers to register for GST and start sending regular payments to the Tax Office for the GST proportion of fare sales.

An important aspect of the Tax Office’s position and attitude towards Uber “ride-sharing” services is that they are considered to be taxi travel. Despite arguments to the contrary, this interpretation was accepted by the Federal Court.

When considered as taxi travel, uber drivers required to register and collect GST without regard to the minimum turnover threshold of $75,000 per annum which applies to businesses more generally.

The current GST rate is 10%. This means that 1/11^th of fare sales value represents the GST component, which must be paid to the Tax Office on a minimum of a quarterly basis, via the lodgement of a Business Activity Statement (BAS).

To become part of the GST remittance system, an ABN is necessary which can be applied for at the same time as registration for GST.

Further information

• BAS statements
• ABN Registration

This page was last modified 2017-12-11