'Uber Rides into Queensland' by Tina Zawilla

Most of us by now have heard of “Uber” the ridesharing organisation revolutionising the taxi industry overseas and now here in Australia.   Uber Technologies Inc is an American multinational online transportation network company that develops, markets and operates the Uber mobile app, which allows consumers with smartphones to submit a trip request which is then routed to Uber drivers who use their own cars.  

As of August 2016, the service was available in over 66 countries and 507 cities worldwide.  And the Queensland Government recently announced it’s plan to regulate ridesharing in Queensland, in their words, in “recognition of the positive impact ridesharing is having in our State” and “it means more people right across Queensland will now stand to benefit from more choice to safe, reliable and affordable transport.”

While the Queensland Government may have only recently made this announcement, the Australian Taxation Office has been well aware of the “Sharing Economy” for some time, acknowledging a broad range of sharing economy websites and apps operating in Australia.  And of course, noting that people who provide goods or services via the sharing economy should be aware of how GST and income tax applies to their earnings.

In today’s article I am going to focus on providing taxi travel services (ride-sourcing or ridesharing), however, other sharing economy services include; renting a room or a whole house or unit, providing personal services such as graphic design, odd jobs, deliveries and renting out a car parking space.

So what do you need to consider regarding tax before you sign up to be an Uber driver?

•  If you are ‘carrying on an enterprise’ in Australia you will need an Australian Business Number (ABN).
• If you are providing ride-sourcing services, under the GST law you must be registered for GST and you need to account for GST on the full amount of every fare regardless of how much you earn.  The GST registration threshold does not apply to ride-sourcing services.
• You will need to declare your income in your tax return (and claim any associated expenses), so you will need to keep records of your activities to meet your tax obligations.

If you are currently Uber driving or are considering signing up, please make sure you seek professional tax advice as soon as possible to avoid any nasty surprises at tax time.  Call our professional team at Sothertons on 4972 1300.