BAS And GST Implications For Rideshare Drivers
If you are driving for a ridesharing service, then you are running your own business. That means you will have some tax obligations that you must fulfil throughout the year.
A rideshare driver is not an employee or contractor of a specific rideshare operator – whether it be Uber, DiDi, Ola or various others. Therefore, you are responsible for managing your own GST and income tax obligations.
Fortunately, with BAS lodge, staying on top of these obligations is not that difficult.
What GST And BAS Obligations Will I Have?
First up, you must have an ABN and be registered for GST from day one with the Australian Taxation Office (ATO). Normally most businesses do not have to register for GST until they exceed or expect to exceed $75,000 in turnover (sales) annually, however, ridesharing drivers must be registered from the moment they start driving. Traditional taxi drivers are subject to the exact same GST obligations.
After you have registered you will need to lodge a Business Activity Statement (BAS) at least quarterly, if not monthly. The annual BAS lodgement option is not available to rideshare drivers. The easiest way to lodge your BAS is with BASlodge.com.au.
This is a simple example of how a quarterly BAS is calculated:
- 1/11th of your gross fares and tips for the quarter is the GST you have collected for the quarter (you owe this to the ATO).
- 1/11th of your total expenses (fuel, repairs, rideshare provider fees etc) is the GST you have paid for the quarter (and you can claim this back from the ATO).
- Note that not all expenses have GST – for example, car registration does not have GST. It’s important to look at the tax invoice you receive for all expenses to ensure that it actually has GST before claiming it.
- The net amount you owe the ATO on your BAS = GST on fares & tips minus GST on expenses
The rideshare operator will provide you with regular reports on total fares and tips collected, along with the fees you have paid to the rideshare provider. Conveniently, the rideshare provider also issues tax invoices to your passengers so there is no need for you to do so.
What Income Tax Obligations Will I Have?
When completing your income tax return, you will need to include all income earned from operating as a rideshare driver, including tips and bonuses, less all expenses you incurred in generating that income. This net income will add onto any other income you have during the year to form your taxable income and be taxed at your marginal rates as per usual.
How can I lodge my BAS?
The easiest way to lodge your BAS is through BASlodge.com.au. Fill out a simple online form and we will lodge your BAS with the ATO. We are registered Tax Agent which allows us to give you a 4-week extension on the due date of your BAS. It also means that if you need any assistance lodging your BAS you can give us a call and we will help you out.