Reward from Uber - no gst?
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I think there is a sufficient link to the rendering of services to make it subject to GST.
GST treatment doesn’t depend on whether there’s a legal obligation to make the payment.
GST treatment doesn’t depend on whether there’s a legal obligation to make the payment.
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5,954 Posts
I agree with @Sammy _102
1 check the Melb. Forum
2 although I first thought bonus was GST free, I have thought about it from the ATO 's perspective , every $ earned by uber is subject to GST , the ATO is not going to miss out , by ubers generousity , on their cut ,
the bonus paid by uber may say "GST included" but this is not gospel , we just have to wait till approx 27 April,
They will probably include it in our April Statement ,
My accountant can work off that , and I'm sure the subject will be mentioned , again ,
Meanwhile let's all hope the bonus comes to fruition
" why worry "
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It is not GST applicable as it is not a payment directly linked to providing a service or product. We do not provide our services to Uber, we provide the service to the riders. Uber has decided (out of the goodness of their heart {yeah I know right, who would've thought}) to share some of their dollars with us, but not in return for goods or service provided by us to them. GST is only applicable on charges directly related to the provisions of goods and services. However, it is not a gift either and will be subject to income tax as the money comes from our source of income and by the very definition of the word, is income. It just hasn't been obtained through the provision of goods and services.
GST is literally a Goods and Services Tax.
If Sammy did in fact check with his accountant, I suggest he find a new accountant.
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If you look at the ATO information provided about ride share, you will find it there that GST will only not apply to Bonuses/top ups if the company supplying the bonus is not an Australian company. Considering Uber now has company locations in Australia and the funds are written as coming from there, the GST free rule does not apply. Like I have said, we have had lengthy discussions about this in the Melbourne forum. I guess we will find out on the 27th, if under the bonus it lists GST well then we know for sure.
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957 Posts
ATO love ant rewards as they tax them at 50% and take GST as well.
For example I got $140 which is really $50.
For example I got $140 which is really $50.
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Bonuses and similar payments are NOT taxed at a flat rate of 50% irrespective of your income.
They are taxable at your marginal tax rate plus Medicare levy: https://www.ato.gov.au/Rates/Individual-income-tax-rates/.
The small business income tax offset will then reduce the tax payable: https://www.ato.gov.au/business/inc...s/in-detail/small-business-income-tax-offset/.
Also, any GST payable is excluded from assessable income.
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I’m sure the ATO will treat these payments as “catch-up” payments for SERVICES previously rendered to Uber.
Have your percentages ready to remit with your next BAS.
Have your percentages ready to remit with your next BAS.
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1,093 Posts
Well that's jolly decent of them.
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I have received a written response from the Australian Taxation Office advising that these Uber appreciation award payments are NOT subject to GST: see https://uberpeople.net/threads/priv...t-of-uber-appreciation-awards-bonuses.324929/.
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451 Posts
Just as I said. Thanks Jack.
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Good work Jack.
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