08 9321 2111 info@shakes.com.au

Ride-sourcing and tax: what you need to know

Dec 18, 2018

18 December 2018

If you’re thinking of earning a little extra cash over the holidays by participating in a ride-sourcing arrangement (think Uber driver), there are a few things you need to take care of before you hit the road.

Firstly, what is ride-sourcing? The ATO offers the following definition:

Ride-sourcing, is an ongoing arrangement where:

  • you (a driver) make a car available for public hire for passengers
  • a passenger uses a website or app provided by a third party (facilitator) to request a ride, for example Uber, GoCatch and others
  • you use the car to transport the passenger for payment (a fare).

And here’s what you need to do to make sure you’re meeting your tax obligations:

  • Register for an ABN
  • Register for GST from the day you start
  • Pay GST on the full amount of every fare
  • Keep records of income and expenses for both GST and income tax purposes

Contact the team at Shakespeare on 9321 2111 if you’d like to discuss how this may apply to you.



General disclaimer: Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles on this website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose

.