When you drive for Uber you are not an employee. You’re a contractor. Here’s why that is important: When you’re not an employee, you have to be careful that your tax affairs are managed correctly.
The ATO’s Uber tax implications are straight-forward at a basic level:
- Any money you make driving for Uber counts as income, meaning you must declare it on your Tax return.
- Even if you earn less than the $75,000 GST income threshold, as an Uber driver you need to register for GST. (More on that below…).
Do Uber drivers pay GST?
From August 2015, the ATO confirmed all Uber drivers are required to register for GST. This means you submit the GST portion of your Uber fares to the ATO. This is in addition to the tax you need to pay for income you earn as a driver.
Uber drivers should register for GST then start to lodge quarterly a BAS statement and pay GST obligations. If you don’t do this, you’re asking for trouble with the ATO and Uber is unlikely to help you out of your personal ATO troubles – it’s not like the State Transport fines that Uber sometimes covers for you.
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