Clarification on ride-sourcing

Clarification on ride-sourcing


The Federal Court has recently agreed that ride-sourcing is taxi travel.

For GST purposes, the word taxi means a car (vehicle) made available for public hire that is used to transport passengers for fares.

State and territory laws regulating transportation of passengers contain specific definitions of the term taxi. A vehicle can be considered a taxi for GST purposes, but not for state and territory regulatory purposes.

The ATO defines ride-sourcing as an ongoing arrangement where a driver makes a car available for public hire; a passenger uses, for example, a website or smartphone app provided by a third party to request a ride, i.e. Uber, GoCar and the driver uses the car to transport the passenger for payment with a view to profit.

For those who provide ride-sourcing services, you are most likely to be running a business and therefore, you must:

  • keep records
  • have an Australian Business Number (ABN)
  • be registered for GST, regardless how much you earn
  • lodge Business Activity Statements (BAS)
  • pay the GST portion of the full fare received from passengers for each trip
  • include income from ride-sourcing in your income tax returns.
Categories

If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


+ There are no comments

Add yours