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20 December 2018

Earning Income from Ride-Sourcing

If you’re considering earning some extra money these holidays through ride-sourcing services, like Uber, there are a few things you should be aware of first.

Under tax law, the fares received from ride-sourcing are subject to GST, so before you can start driving, you’ll need to make sure you have an active ABN and are registered for GST. Once you’re registered for GST, you’ll need to lodge monthly or quarterly BAS to report the GST collected on your fares.

The income received from ride-sharing is also subject to income tax and should be included on your annual tax return.

The good news is, a portion of your car running costs can be deducted against this income in your tax return, and the GST on these apportioned expenses can be claimed as a credit in your BAS lodgements.

To make sure you can report your income and expenses correctly in your BAS and tax return, you’ll need to keep a record of:-

  • Statements showing income from ride-sourcing
  • Receipts of any expenses related to your ride-sourcing income
  • A spreadsheet to record your business income and expenses can be downloaded here
  • A logbook to track your trips so you can work out the business-related portion of your car costs – a template can be downloaded here

Expenses that can be claimed against ride-sourcing income include:-

  • Fuel costs
  • Car cleaning and upkeep
  • Car repairs and maintenance
  • Registration and insurance
  • Platform access costs, e.g.Uber fees
  • Water, mints, etc to supply to your customers
  • Monthly mobile phone & internet costs

All costs related to the running of the car can only be claimed up to the percentage of business-use for ride-sourcing, as per your logbook records.

Please contact our office if you would like any assistance with applying for an ABN, registering for GST or preparing your BAS forms for lodgement.

 

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.   

 

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