The Government’s tax crusade has reached Uber’s Australian doorstep, with drivers on its cheap UberX tier now required to register as a business and pay GST, or risk even more fines.
The Australian Taxation Office has issued guidance for Uber drivers after a decision that sees the service classed as a taxi operator under the new rules.
This means that all Uber drivers, including ride-sharing UberX drivers, will need to register for an Australian Business Number (ABN) with the Government and collect GST on fares, regardless of their annual turnover. There is normally a turnover threshold of $75,000 per annum before GST registration is required, however that doesn’t apply if you operate a taxi service.
The new rules will also require Uber drivers to lodge a quarterly Business Activity Statement. A penalty of $220 applies if you fail to lodge the statement.
Drivers have until 1 August to register themselves with the ATO.