The Australian Taxation Office (ATO) has released advice on the tax consequences of travel through ride-sourcingExternal Link (also known as ride-sharing or ride-hailing), provided as part of the ‘sharing economy’.
People who provide ride-sourcing services, through companies such as Uber, are providing ‘taxi travel’ under the GST law. The existing tax law applies and drivers are required to register for GST regardless of their turnover.
Affected drivers must register for an Australian Business Number (ABN), GST, charge GST on the full fare, lodge business activity statements and report the income in their tax returns.
Current drivers that don’t have an ABN and are not registered for GST can easily apply online at abr.gov.au.
Recognising that some taxpayers may need to take some corrective actions, the ATO is allowing drivers until 1 August 2015 to get an ABN and register for GST.
For more detailed information on the sharing economy and tax requirements for ride-sourcing, visit www.ato.gov.au/sharingeconomyExternal Link