So you want to drive Uber? Things you should know...

Posted by Datasift on 30 August 2019
So you want to drive Uber? Things you should know...


Current law states that all taxi drivers and chauffers including ride-sharing must be registered for GST from the first dollar of income (division 144 of the GST Act). This is to avoid confusion about pricing, and results in all customers paying the same rates.
Uber challenged the ATO over the application of GST on the basis that "ride-sourcing drivers do not supply taxi travel". The ATO view is that providing driving or ride-sharing services is the same as providing taxi travel services, because a car is made available for public transport use and as such the current law stands for Ride-Sharing drivers.
The ATO has previously admitted to "some uncertainty about how tax applies to various sharing economy models" and won't be pursuing any Uber drivers regarding records and GST registration prior to August 2015. However, from August 2015 onwards, the ATO expects that all Uber drivers will be registered for GST, providing invoices and declaring Uber-related income.

Driver Obligations

Drivers offering services via Uber are doing so with Uber acting as an agent by providing the booking and payment gateway, therefore there are certain obligations the driver needs to meet.

  • Registration for an ABN and GST is the obligation of the individual driver.
  • Drivers must complete and lodge a quarterly BAS regardless of the amount of turnover. Because registration is mandatory drivers may not elect to report annually.
  • Drivers must issue tax invoices, when requested within 28 days, if the transaction is over $82.50. If the transaction is less than $82.50, the proof of payment receipt from the customer's credit card or the email receipt is sufficient for a customer to claim a GST credit.
  • Income derived from Uber is declarable on the individual tax return at the end of the financial year.


Paying GST Using ATO Payment Card

Drivers, taxi drivers, chauffers, limousine drivers and rideshare drivers have the option to use an ATO activity statement payment card (this is only available to people in the taxi services industry).
The card can be used to make small frequent payments; however, the driver must record the payments to work out the final balance due when the BAS is due. The BAS must still be lodged by the due date, and any outstanding amount paid.

Posted in: Top Tip  

Single Touch Payroll

Posted by Datasift on 10 August 2019

If you have not already implemented single touch payroll, we can help you.

For example, in Xero, it's as simple as calling the ATO with your software ID and ticking a box to say it is done!

So if your bookkeeper is charging to do it, maybe you need a new bookkeeper?

Posted in: Top Tip  

When Super Gets Ordinary...

Posted by Datasift on 31 May 2019

There are caps on the amount you can contribute to your super each financial year to be taxed at lower rates. If you contribute over these caps, you may have to pay extra tax.

The cap amount and how much extra tax you have to pay may depend on your age, which financial year your contributions relate to, and whether the contributions are:

  • concessional (before tax)
  • non-concessional (after tax)

To find out how much you contributed into your super fund to ensure you don't go over the caps, contact your super fund.

Posted in: Top Tip  

Exception Reporting

Posted by Datasift on 9 April 2019

Exception reporting. What is it? How can it be used to maintain your business' health?

Imagine you are a wholesaler selling a range of cosmetics nationally.

You have a Sales Manager in each state and a team of sales people reporting to them.

Using intelligence reporting, it is possible to extract reports that are below a selected gross profit level,

for each representative for the Sales Managers AND then to consolidate them into a national report,

grouping the transactions by Sales Manager for senior management transparency.

Often, just having known transparency is enough to persuade employees to follow company policy but,

for added measure, add the policy to remuneration packages. For example add a sum of money to

bonuses/commissions for achievement of minimum margins.

Datasift - We help you make cents of your data

Posted in: Top Tip  

Introduction to naming ranges in Excel.

Posted by Datasift on 26 March 2019

"Do what?", I hear you ask. Well, how many times have you had to jump around Excel trying to find out what an Excel formula is actually doing?

Lets look at a simple example. =SUM($C$4:$C$9) this is adding up a range of cells. However, it does not tell you what the cells contain - you have to find the range and look at the context.

If we highlight the range by dragging down and then click in the name box (circled in red) we can name the range "Sales".

So now our formula TELLS us what is going on because we can refer to the range to create the formula =SUM(Sales) - just imagine how much easier this is to understand what is going on.

Try it for constants like GSTRate, USDExchRate - it will really make a difference to other people's understanding of your work, too!

Posted in: Top Tip  
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