Tax man chases Uber
ATO urges drivers to register for GST
TENS of thousands of Uber drivers across the country have been issued a stern warning by the Australian Taxation Office to comply with their tax obligations or they will get caught.
Today signals the end of the financial year and the ATO will put up to 100,000 Uber drivers on notice to make certain they understand their tax requirements.
The booming ride-sourcing business is used by more than three million people in Australia and for many people it’s been a source of income.
Drivers do not pay tax as they go, instead they must be registered for GST and pay GST on the full fare when they file their business activity statements.
Assistant Commissioner Tom Wheeler said the ATO had reached out to more than 100,000 drivers, ranging from those doing a few shifts to working full-time as a driver.
“We have reached out to about 60,000 drivers so far and we have been collecting data to inform us on who is driving,’’ Mr Wheeler said.
“We estimate there are over 100,000 individuals that have performed ride-sourcing services in Australia since August 2015 and there is quite significant churn. It’s not a stable population so we are seeing people come in and exit.”
He urged all drivers to register for GST and lodge their business activity statements.
“We appreciate this is quite an emerging new area and it’s quite a new arrangement in Australia so we have been giving them a little bit of time to get their tax affairs in order,’’ he said.
The ATO collects more than 650 million pieces of data each year, which includes large chunks of data from financial institutions of any payments Australians receive.
Online software company Xero’s products partner Matthew Prouse said there were many tax deductions drivers could also receive by using ride sourcing as an income stream.