Uber tax won’t stop NT launch

A FEDERAL Court ruling on Friday that will require UberX drivers to collect and pay GST to the Government is not expected to affect the company’s entrance to the Darwin market, a spokesman said.

The Australian Taxation Office had cracked down on Uber drivers in 2015, arguing people who used their own cars to give rides to passengers should pay the tax for every dollar they earned, similar to taxi drivers.

Uber hiked its regular fares by 10 per cent to cover the extra tax, but had argued the lower cost UberX drivers shouldn’t be forced to pay GST because they were not taxi drivers.

The company challenged the ATO’s ruling.

But in the Federal Court in Sydney on Friday, Justice Griffiths ruled in favour of the ATO, agreeing that UberX services constituted taxi travel services.

Uber had argued that the definition of taxi travel under the GST Act was only applicable to taxis and limousines.