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Discussion Starter · #1 ·
Just received this:

GST UPDATE

Anne,
The Australian Taxation Office recently decided to release guidance suggesting that uberX ridesharing driver partners need to register and remit GST from their first dollar earned.
This followed concerning levels of consultation with taxi industry incumbents, and puts these driver partners in a different position to the likes of truck drivers, bike couriers, and Airbnb hosts, who typically do not have to collect GST until they reach $75,000 in turnover a year.
To be very clear, Uber believes that all of its driver partners should pay their appropriate share of tax. However, we believe driver partners and riders are being unfairly singled out, and so Uber is challenging the ATO's position in the Federal Court of Australia.
In the meantime, given the additional costs that might be incurred by driver partners as a result of the ATO's guidance, uberX prices are increasing today by approximately 10% in each Australian city where uberX is available.
This is not a tax on Uber, but rather an additional tax on the thousands of everyday Australians who earn a flexible income by sharing rides on the Uber platform. It also means that drivers who share just a few rides each month may encounter unnecessary red tape such as the filing of quarterly business activity statements with the ATO.
We feel that the position taken by the ATO jeopardises this flexible income, harms job creation, and is guidance that should not have been issued while a comprehensive federal government tax review is underway.
Remember, even with these changes, the efficiencies of ridesharing mean that uberX still remains on average 25-35% cheaper than a taxi across Australia.
Please know this - we will keep fighting for uberX on behalf of riders, drivers and the cities we love.
Thanks for choosing Uber,
David - General Manager, Australia
PS: If you are interested in using Uber for Business, visit our blog to set up centralised billing and learn more about Tax Invoices.
 

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They may have lost a few drivers, I was at the uber office the other day and they have a huge number still signing on, when has it been uber'a goal to retain drivers? Remember your first week all smiles with mint and water
 

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Yes - absolutely should have been 20% - apparently in Melbourne they have had a big drop off in drivers and are having problems covering work - that may have been the Catalyst for this as generally they don't care for drivers - in brisbane it appears still a line of suckers ready to put some skin in the game.
Moi ? Still not driving Uber platform until they make it worthwhile again .

It is a pity such a great idea has become bogged down in short term profits and IPO valuation concerns - done slowly and legally and with nice margins for all this could have been a great concept that really rocked !

Pity it hasn't !!
 

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Not worth it at the old rates pre-GST and not worth it at the new rates now that GST is in. Forget 20%, it should be upwards of a 30% increase to make it worth while - you are driving your car into the ground and should be able to make $25+ per hour without surge.
 

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Whats with the "approximately 10%" increase?

Keep in mind Uber cut fares 10%
Plus GST payable on whole fare, your still 12.5% worse off than old rates which were slim as it was.

Unfortunately there will be a lot of drivers that'll be thinking, great covers the GST. Wrong!
 

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Whats with the "approximately 10%" increase?

Keep in mind Uber cut fares 10%
Plus GST payable on whole fare, your still 12.5% worse off than old rates which were slim as it was.

Unfortunately there will be a lot of drivers that'll be thinking, great covers the GST. Wrong!
No, this covers the GST.

You can claim GST input credits. 10% back from all expenses except Uber's commission.
 

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They cut pricing by 10% for winter promo, and then they put 10% back. This is not an increase they've simply restored a price cut that they promised would only last till the 2nd of August. Now to cover GST payable thats a different story.

Fare $110 Nett $88, out of that 88 you receive you'll pay/forward $10 in GST. 10 from 88 is more than 10%?

I realise you can claim input credits but if you had exactly the same amount of credits to offset GST, the revenue side would show your making nothing.
 

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They cut pricing by 10% for winter promo, and then they put 10% back. This is not an increase they've simply restored a price cut that they promised would only last till the 2nd of August. Now to cover GST payable thats a different story.

Fare $110 Nett $88, out of that 88 you receive you'll pay/forward $10 in GST. 10 from 88 is more than 10%?

I realise you can claim input credits but if you had exactly the same amount of credits to offset GST, the revenue side would show your making nothing.
Yeah funny how they Forget that claiming will only cover a very minimal amount or else it would mean your not making anything . The fares need to be increased at least another 10% now that the original prices is back . It wasn't a real increase.
 

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No, this covers the GST.

You can claim GST input credits. 10% back from all expenses except Uber's commission.
And that right there is what the UberOverlords are counting on. ...
I. E. mathematical geniuses won't drive for UberX so they will be easily duped by the Uberspin.

For those that still haven't worked it out:

Don't be fooled by their hype and publicity machine ....they are a mercenary, predatory company only interested in world domination. They couldn't give a **** about the schleps that drive for them. .... the increase does not equal the additional loss, let alone the tax collection burden that has been forced on the drivers whilst Uber continues to generate tax free, offshore revenue.

My belief is they should pay"some" tax if they are deriving income from the infrastructure created by our taxes.

But they are took clever to do that...they will "look" like they are supporting drivers. .. at the expense of passengers. ..but really all they have done is screw both and still not paid any corporate tax....
I.e
$20. 00 old fare (after they dropped it 20% already)
-$4.00 = 20% commission to uber
$16.00 to driver

$22.00 New fare with 10 % "increase to cover GST"
GST = $2.00
Uber takes 20% total fare
$22.00
- $4.40 Uber Commission - their slice increases by 10%
- $2.00 GST
$15.60 to driver - whilst driver Revenue Decreases by 2.5%
(before cost for administration of GST collection and remittance to ATO)

Some Uber newbies will say "but what about all the input credits you can claim"... or what about driving under another entity that will pay you a net amount after taking their fee....

The point is this whole GST thing changes the social/part time/casual aspect of making a bit of beer money and providing a fun friendly service........ into a pure "business" that I predict (guess) will end up with the same majority of disgruntled, smelly, overworked, under appreciated, cynical, devious and unlikable people that used to piss off pax in the Taxi industry ........these same "profit over people" attitudes ruined the reputation of the hard working, intelligent, friendly, knowledgeable cabbies that now have gone the way of other rare and endangered species ....

To me it highlights that we are now all complicit in facilitating millions of $AUD to be siphoned off without anything being returned to the country that provided the infrastructure that allows us to drive on (relatively) safe,clean, well lit and maintained roads....paid for with our taxes... but not $0.01 from Uber..
 

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And that right there is what the UberOverlords are counting on. ...
I. E. mathematical geniuses won't drive for UberX so they will be easily duped by the Uberspin.

For those that still haven't worked it out:

Don't be fooled by their hype and publicity machine ....they are a mercenary, predatory company only interested in world domination. They couldn't give a **** about the schleps that drive for them. .... the increase does not equal the additional loss, let alone the tax collection burden that has been forced on the drivers whilst Uber continues to generate tax free, offshore revenue.

My belief is they should pay"some" tax if they are deriving income from the infrastructure created by our taxes.

But they are took clever to do that...they will "look" like they are supporting drivers. .. at the expense of passengers. ..but really all they have done is screw both and still not paid any corporate tax....
I.e
$20. 00 old fare (after they dropped it 20% already)
-$4.00 = 20% commission to uber
$16.00 to driver

$22.00 New fare with 10 % "increase to cover GST"
GST = $2.00
Uber takes 20% total fare
$22.00
- $4.40 Uber Commission - their slice increases by 10%
- $2.00 GST
$15.60 to driver - whilst driver Revenue Decreases by 2.5%
(before cost for administration of GST collection and remittance to ATO)

Some Uber newbies will say "but what about all the input credits you can claim"... or what about driving under another entity that will pay you a net amount after taking their fee....

The point is this whole GST thing changes the social/part time/casual aspect of making a bit of beer money and providing a fun friendly service........ into a pure "business" that I predict (guess) will end up with the same majority of disgruntled, smelly, overworked, under appreciated, cynical, devious and unlikable people that used to piss off pax in the Taxi industry ........these same "profit over people" attitudes ruined the reputation of the hard working, intelligent, friendly, knowledgeable cabbies that now have gone the way of other rare and endangered species ....

To me it highlights that we are now all complicit in facilitating millions of $AUD to be siphoned off without anything being returned to the country that provided the infrastructure that allows us to drive on (relatively) safe,clean, well lit and maintained roads....paid for with our taxes... but not $0.01 from Uber..
Spot on with pricing, like I've said before they will always be someone willing to work for less
 

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Can I ask a question to the folks in Sydney and/or Brisbane.
I'm not exactly sure which market(s) had the 10% cut.

You had a 10% fare cut a couple of months ago, and now you've had it restored in effect, right?

So can you tell me, has it gone back exactly the way it was before the June cut?
I'm talking the flagfall, the cost per minute, and the cost per km? I'm curious.

Hopefully some folk will have that info available to post. Like I said, I'm curious.
It's different for Melbourne drivers by the way. Our June cut was 15%... hmm...
 

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