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Uber just changed their tune regarding drivers GST/ABN requirements - email

Discussion in 'Melbourne | Uber Drivers Forum' started by skyco, Jul 11, 2017.

  1. skyco

    skyco Active Member

    @laser you are the GST specialist around here, what do you think?

    I just received this email from Uber and it reads as follow:


    The Australian Government recently changed its tax law from 1 July 2017 to impose Goods and Services Tax ("GST") on digital products and services sold by non-resident suppliers (such as Rasier Pacific V.O.F. ("Uber")).

    Because of this change to the tax law:

    • driver-partners who are not GST registered are considered individual "non-business" users. As such, Uber will be required to charge these driver-partners GST on their Uber Service Fee.
    • driver-partners who are GST registered are considered "business" users. As such, Uber will not be required to charge these driver-partners GST on their Uber Service Fee.
    To determine whether Uber is required to charge GST, Uber will need to rely on the details you upload to your Uber partner account.

    Please note that if your ABN and GST registration details have not been uploaded to your Uber partner account, from 1 August 2017, Uber will be required to charge GST on your Uber Service Fee. See the table below for details of how this applies to a driver-partner with a 20% Service Fee:

    Current Service Fee

    Service Fee after 1 August 2017

    ABN & GST registration details uploaded to partner account


    No ABN & GST registration details uploaded to partner account

    22% (including GST)

    If you already have an ABN and are registered for GST, you can upload your details here.

    If you do not have an ABN and/or you are not registered for GST, please see here for information from the ATO on ridesharing and tax.

    For information on how to get an ABN and register for GST please see here.

    If, at any time after 1 August 2017, you upload your ABN & GST registration details to your partner account, GST will no longer be charged on your Uber Service Fee and your Service Fee will revert to the GST exclusive amount. Please be aware that this may take up to 3 business days to take effect from when you upload the details.

    The Uber team
    Last edited: Jul 11, 2017
    Tiger likes this.
  2. skyco

    skyco Active Member

    It looks like uploading ABN details to Uber is no longer compulsory. Uber will charge 10% on their commission cut which drivers can later get back as input credits in the BAS. Is this correct?

    This also means Uber are now officially registered for GST.

    The question of what Uber are going to do about customer invoicing remains. Being a GST registered entity Uber now must produce a proper tax invoice using their own name just like aany other business would, except for cases of "partner-business" drivers who choose to upload ABN info, Uber can then use the "partner" name on the invoice.

    So what about all the other drivers?.... are they now employees in the company? because Uber will now need to issue their own tax invoice to the customer.

    What a mess...
    Last edited: Jul 11, 2017
    Tiger likes this.
  3. HumungousDill

    HumungousDill Active Member

    hahaha the GST saga never ends....
  4. Uberx zoom

    Uberx zoom Well known member (founder)

    FWO investigation must have somthing to do with this. Employees can not be forced to upload ABNs and have thier name prined on somone else's Tax invoices.
    Cold Gin likes this.
  5. MacJNeo

    MacJNeo New Member

    I am not much educated on tax and finances.
    I had to register for GST and file BAS as I am driving UBER full time for time being.
    Now, with the new rules, Can I surrender my GST and ABN and let UBER manage GST?
    What are your thoughts about this?
  6. Uberx zoom

    Uberx zoom Well known member (founder)

    I am not an accountant and suggest that you consult with one to discuss what best suite your personal circumstances.
    Both methods are similar when it comes to the total, bottom line left to driver.
    eXploitation likes this.
  7. MacJNeo

    MacJNeo New Member

    Thanks mate.:)
    Uberx zoom likes this.
  8. HumungousDill

    HumungousDill Active Member

    I wouldn't let Uber manage anything of yours if I were you. Use the services of an accountant who is familiar with ride sharing.
    MacJNeo, eXploitation and Uberx zoom like this.
  9. eXploitation

    eXploitation Active Member

    Unfortunate that you are full time relying on goobers

    The only way that i see this filthy endeavour making any sense is to claim say 80 per cent goobers use while using it for that at 30 per cent leaving a decent margin of 'relief' while having another income
    Especially a centrelink type income
  10. MacJNeo

    MacJNeo New Member

    Unfortunately, after loosing my job, could not get another. This seemed to be easiest option as I could not pass the “eligibility” criteria of centrelink. Now I am earning as Uber, again, can not get centrelink because I am doing a business. Their criteria for help in this business is max $900 earning in fortnight. :(
  11. Uberx zoom

    Uberx zoom Well known member (founder)

    Many Uber drivers are in your exact same situation, a situation Uber are happy to take advantage of.

    Keep looking for a job mate. Don't give up.
    eXploitation likes this.
  12. eXploitation

    eXploitation Active Member

    you should stop poobears briefly and apply again - there are easy get-arounds to centrelink bullshit, I am a past master to these

    just say your car broke down and have to fix it but goobers doesn't pay enough and so forth

    once you get on it, you hit the expenses column savagely - I realise that it doesn't take much to become ineligible - but you only report clear profit as earnings

    work backwards or approximate based on your tax returns, to give yourself some sort of short term metric

    don't take any shit from them where they insist you report all takings!!!

    which sends the strong message that goobers is the wrong choice of payment method to start off with, if you know what I mean because there's no lurks/perks

    especially low earning 'gigs' - which this definitely is - need to have some sort of sweet spot

    and unless you and you group are doing a 'bit on the side' this 'exploitation' is a complete waste of time and in fact making you poorer by ruining your ride

    you are also burning through the most important days in your life - the ones you have left - so make good

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