If you’re going to drive passengers for a fare, get familiar with your tax obligations before you start.
Did you know, “ride-sourcing is treated the same as taxi travel for GST purposes, so you’ll need to get an ABN and register for GST, regardless of how much you earn.” Source, Australian Taxation Office (ATO)
You can apply for an ABN and register for GST online. If you do, note that:
The ATO suggests that when applying for an ABN, you:
- type ‘taxi ride sourcing’ as your business description
- select ‘taxi driver (except owner/operator)’ or ‘taxi cab service’.
The ATO notes you will also need to:
- pay GST on the full fare
- lodge business activity statements
- include earnings in your tax return
- keep accurate records to claim business deductions.
Remember, as a registered tax agent we can help you with your tax if you need assistance and we are able to apply for an ABN and register for GST on your behalf. Want to learn more? Call today or email anytime!
