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Hi all,

Do I need to pay gst on referral fee? I should still declare as a business income too?
 

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Discussion Starter · #3 ·
to clarify do we need to bother or pay GST if my total income below $75k threshold ?
Well technically no, but since the fare you received has gst component in it, you have to pass on to ATO. Correct me if I'm wrong
 

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There is many resources on UP and online, your questions have been answered a few times over. UP has a search function that can help you locate relevant threads.

Please see the ATO website regarding Ride-sourcing. All and any income is to be declared. The $75k threshold for GST is irrelevant for this business type and GST must be paid from the first $1.

No GST is payable on referral credit, either new driver or new rider. Add these amounts to your quarterly BAS as GST free sales. All other fares are subject to GST, the ATO website will explain the details.
 

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Well technically no, but since the fare you received has gst component in it, you have to pass on to ATO. Correct me if I'm wrong
Thats not entirely true, it's because the business type is legally obligated to charge GST so it's understood that all charges from Uber, Taxi and businesses alike are inclusive of GST. The ATO view fares as an all inclusive total, meaning "including GST". 1/11th of what the passenger is charged (not what you receive) is consider as GST and must be remitted to the ATO on a quarterly basis unless you opt for a monthly BAS.

Basically your paying approx 12.5% compared to what you receive as Uber is situated outside of Australia for taxation purposes.
 

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Do I need to pay gst on referral fee? I should still declare as a business income too?
Yes GST is payable on all business income. The referral money is classed as Uber income.

to clarify do we need to bother or pay GST if my total income below $75k threshold ?
GST is payable on all Uber income from the first dollar, as per the ATO laws for Taxi/Ride sharing drivers. The $75 threshold doesn't apply to them, they have a special threshold that is $0.
 

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My understanding is that we don't need to pay GST for incentives, but for the fares including Uber's fee from the first dollar ( no threshold for taxi or ride sourcing.

Is there anyone who hasn't paid GST yet?
According to ATO we are supposed to pay GST quarterly or monthly.
I haven't paid GST yet, and I drove from Nov. till they dropped the fare by 15%.
 

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My understanding is that we don't need to pay GST for incentives, but for the fares including Uber's fee from the first dollar ( no threshold for taxi or ride sourcing.
This is wrong. Income is income, regardless of what its for in the eyes of the ATO. Uber fares, referral bonus, mowing someones lawn, selling a coffee, its all income that needs to be claimed and GST paid on it.

Once you are GST enabled, GST is payable on ALL BUSINESS INCOME. You can't pick and choose what 'business income' GST is paid on.

SO unless its a PAYG income, you have to pay GST on it.

According to ATO we are supposed to pay GST quarterly or monthly.
Correct.

I haven't paid GST yet, and I drove from Nov. till they dropped the fare by 15%.
Are you still driving?
 

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Yes GST is payable on all business income. The referral money is classed as Uber income.

GST is payable on all Uber income from the first dollar, as per the ATO laws for Taxi/Ride sharing drivers. The $75 threshold doesn't apply to them, they have a special threshold that is $0.
Referral and incentive payments are not subject to GST because no taxable supplies have been made in relation to this income.
 

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I haven't paid GST yet, and I drove from Nov. till they dropped the fare by 15%.
You have to declare it and you will be taxed on it. Uber provide your details to ATO so they know who you are. Give ATO a call. They are friendly if you are forthright.
 

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Referral and incentive payments are not subject to GST because no taxable supplies have been made in relation to this income.
GST doesn't work like that. Go talk to a accountant and find out how wrong you are!

This is like watching a game of tennis.... YesNoYesNo.........
Well when you have those that know whats correct and those that want to ignore whats correct, you end up with a game of tennis. Either way, the ATO won't be knocking at my door for a audit, nor will I be hear crying about a massive tax bill and fine!

I know this much ;)
 

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GST doesn't work like that. Go talk to a accountant and find out how wrong you are!
Yeah it does actually. If there's no taxable supply, then no GST is payable. A taxable supply is:
http://www.austlii.edu.au/au/legis/cth/consol_act/antsasta1999402/s9.5.html said:
You make a taxable supply if:

(a) you make the supply for * consideration; and

(b) the supply is made in the course or furtherance of an * enterprise that you * carry on; and

(c) the supply is * connected with the indirect tax zone; and

(d) you are * registered, or * required to be registered.

However, the supply is not a * taxable supply to the extent that it is * GST-free or * input taxed.
The ATO has publicly stated that referrals and incentives are GST-free, so any such income is not subject to GST:
https://www.ato.gov.au/Business/GST/In-detail/Managing-GST-in-your-business/General-guides/Providing-taxi-travel-services-through-ride-sourcing-and-your-tax-obligations/ said:
What is the GST treatment of bonus and top-up payments?
GST is a tax on consumption in Australia only. If you receive a bonus or top-up payment from an overseas facilitator the service you are providing is not consumed in Australia and is GST-free.

These GST-free services may include:

  • marketing and promoting the facilitator to potential customers for which you may receive bonus payment from the facilitator, for example when a new customer quotes your reference code or other identifier
  • operating during certain times, such as peak hours for which you receive a top-up payment from the facilitator - the top-up payment is not part of the fare and is in addition to the fare paid by the passenger.
If you've received dodgy advice from an accountant, then I suggest finding a new one who knows what they're doing!

Well when you have those that know whats correct and those that want to ignore whats correct, you end up with a game of tennis. Either way, the ATO won't be knocking at my door for a audit, nor will I be hear crying about a massive tax bill and fine!

I know this much ;)
They also won't come knocking on your door if you've overpaid your tax obligations through a lack of understanding. ;)
 

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If you've received dodgy advice from an accountant, then I suggest finding a new one who knows what they're doing!
I stand corrected....Looks like I need to remind them about this! Its ok, the accountant has saved me mega dollars over the years and ride sharing is all very new and this was a while ago. I'm sure they'll be up to speed shortly!!
 

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I stand corrected....Looks like I need to remind them about this! Its ok, the accountant has saved me mega dollars over the years and ride sharing is all very new and this was a while ago. I'm sure they'll be up to speed shortly!!
I guess it's understandable that they're not completely up to speed, as this is a relatively new area. Maybe send them this link, it's a good resource for taxation obligations for "ride-sourcing" activities:

https://www.ato.gov.au/Business/GST...rough-ride-sourcing-and-your-tax-obligations/
 

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You have to declare it and you will be taxed on it. Uber provide your details to ATO so they know who you are. Give ATO a call. They are friendly if you are forthright.
I'm going to pay GST & tax anyway, was wondering how those time frames apply to uber drivers considering the majority of uber drivers didn't fully understand their tax obligation as they started.
I'll take ur advice about giving them a call.
 
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