Uber Drivers

Uber Drivers and others in the ride sharing economy are a high ATO Audit Risk, due to the confusion around what is required to meet their taxation obligations.

The ATO has reminded ride-sourcing drivers of the importance of meeting their tax obligations — to get an Australian Business Number and register for GST as soon as they start driving, and to include the income in their tax returns.

The ATO says it is getting data from financial institutions and directly from facilitators, so it knows who the ride-sourcing drivers are, and whether they are meeting their tax obligations.

Around 120,000 ride-sourcing drivers have been contacted by the ATO over the last 18 months to advise them of their tax obligations. Drivers who don’t apply for an ABN and register for GST for their ride-sourcing enterprise will be registered for GST by the ATO, this will be backdated to the date of their first ride-sourcing payment.

Know how to issue a tax invoice for fares over $82.50 GST inclusive if asked.

If a passenger requests a tax invoice (that is, an invoice for a fare over $82.50 GST inclusive), you must provide a tax invoice . If the facilitator you are going through:

• can’t do this on your behalf, use a tax invoice book with your ABN on it. The tax invoice must contain certain details.
• does issue tax invoices on your behalf. Find out the process before a passenger asks for a tax invoice.
• See example of a tax invoice

Drivers can apply for an ABN and register for GST at the same time at abr.gov.au. For more information on ride-sourcing and GST obligations, visit ato.gov.au/ridesourcing.