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More than 50,000 Aussies who use the service to make extra cash ferrying passengers around will now be required to collect and pay GST to the government, after Uber lost a landmark legal battle with the Australian Taxation Office.

In August 2015, the ATO cracked down on drivers for Uber and the low-cost UberX service, saying people who used their cars to provide rides should pay the tax for every dollar they earned, just like normal taxi drivers.

Uber hiked its regular fares by 10 per cent to cover the extra tax, but had argued UberX drivers shouldn't be forced to pay GST because they were not taxi drivers. The company challenged the ATO's ruling.

But in the Federal Court in Sydney on Friday, Justice Griffiths ruled in favour of the ATO, agreeing that UberX services constituted taxi travel services. Uber had argued that the definition of taxi travel under the GST Act was only applicable to taxis and limousines.

Under the original ruling, UberX and other ride-sharing drivers should have been registered for GST since August 2015. It's unclear what effect the decision will have on Uber drivers who failed do to so while awaiting the outcome of the case.

An Uber spokesman said: "We are disappointed in the Federal Court's decision today. We are now reviewing the decision and will provide our driver-partners with more information as soon as we can."

In 2015, Uber Australia boss David Rohrsheim said the ATO's ruling created "unnecessary red tape" that included setting up an Australian Business Number and filing 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 under way," he said.

The Australian Taxi Industry Association has welcomed the decision. It said Uber's arguments hinged on whether the court would accept that there was a deficiency in the GST Act that would allow ride-sharing to slip through a legal loophole.

"We applaud the decision," ATIA chief executive Blair Davies said. "It's just an extension of the old maxim, if it walks like a duck, quacks like a duck, it's a duck.

"It means that UberX drivers have to be registered for GST just like taxi drivers, so they can't go under the radar. Anybody that's been sitting back there thinking they could avoid registering for GST because this case might go Uber's way, they're in a bit of trouble.

"We are glad that this ruling has cut through much of the marketing spin and hype surrounding ride-sourcing services. Fundamentally, UberX passengers are buying a service to take them from A to B in a car.

"Taxing that service differently to the equivalent trip in a licensed taxi would be unfair and constitute a regulatory distortion. That's also the umpire's view and so the ATIA is now calling on Uber to accept it and start co-operating with the ATO by supplying full details of its drivers' earnings."

Mr Davies said the ATIA "simply want a level playing field". "The tax office has decided to do that, we just wish some of the state governments would take the same view and not have regulatory hand-ups for UberX and regulations and red tape to stop taxi services being as efficient as they possibly can."
 

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I know someone will pipe up about how the last post is displayed, it's a Copy & Paste.

Source didn't deserve credit for emphasising Uber's "so called" 10% price hike but NEGLECTING the fact fares had been dropped several times.
 

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I'm new to uber but this is how my mind works lol.

Wouldn't this be a good thing cause now riders pay GST included in the fare and drivers pay that GST to the goverment, basicly a middle man. Where before drivers where paying GST out of there own pocket (income from fares).

Please correct me if I'm wrong :)
 

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On another thread I was led to believe that UBER Drivers are responsible for collecting the GST from the total fare cost even though they only collect 75% of the total fare...in other words you the driver are paying UBERS GST TAX DEPT ..
Correct me if I'm wrong ...!
 

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I'm new to uber but this is how my mind works lol.

Wouldn't this be a good thing cause now riders pay GST included in the fare and drivers pay that GST to the goverment, basicly a middle man. Where before drivers where paying GST out of there own pocket (income from fares).

Please correct me if I'm wrong :)
no. Same, same...
 

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OMG - this is worth coming back for ......
Mr SuperUberDriver had predicted the airport toll would drop to $1 ..........WRONG !!!!!

Mr SuperUberDriver had long predicted that the GST fight would be won by UBER !! He had it on good inside sources !!! Well guess what ? Yet again he was ......WRONG !!!!!

He should crawl back under the rock with Donald Trump - same alternative reality !!

For the hell of me I can not understand why some people insist on making myths !
 

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OMG - this is worth coming back for ......
Mr SuperUberDriver had predicted the airport toll would drop to $1 ..........WRONG !!!!!

Mr SuperUberDriver had long predicted that the GST fight would be won by UBER !! He had it on good inside sources !!! Well guess what ? Yet again he was ......WRONG !!!!!

He should crawl back under the rock with Donald Trump - same alternative reality !!

For the hell of me I can not understand why some people insist on making myths !
Creating notoriety for oneself based on tabloid marketing tactics from the past is the only way this person knows how to get attention. Possibly beaten as a child with newspapers and is finding this way other than seeking professional help.
 

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On another thread I was led to believe that UBER Drivers are responsible for collecting the GST from the total fare cost even though they only collect 75% of the total fare...in other words you the driver are paying UBERS GST TAX DEPT ..
Correct me if I'm wrong ...!
correct...
 

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OMG - this is worth coming back for ......
Mr SuperUberDriver had predicted the airport toll would drop to $1 ..........WRONG !!!!!

Mr SuperUberDriver had long predicted that the GST fight would be won by UBER !! He had it on good inside sources !!! Well guess what ? Yet again he was ......WRONG !!!!!

He should crawl back under the rock with Donald Trump - same alternative reality !!

For the hell of me I can not understand why some people insist on making myths !
Could not help myself :D

Rectangle Screenshot Font Software Operating system
 

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Level playing field now - the taxis can no longer complain. Uber will continue to grow market share against a taxi industry that has a failed business model.
No doubt Uber will appeal.
 

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Level playing field now - the taxis can no longer complain. Uber will continue to grow market share against a taxi industry that has a failed business model.
No doubt Uber will appeal.
Service license - No service license
Commercial CTP - No Commercial CTP
OA Requirement - No OA Requirement
Commercial Registration - Private Registration

Level, you say?
 

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Discussion Starter · #17 ·
I'm still trying to get my head around why drivers are paying gst regardless of rules. Seems to be a lot of rule bending by tax office and uber just to evade the issue and take the money.
Firstly the drivers do not take any money nor do they issue a tax invoice to the riders, uber does, therefore uber is responsible for the gst. Secondly uber is based overseas thus leading to another issue is they are excluded from gst.
Not long ago we were fined for providing a service because we were not a taxi service. Now they say we are a taxi service so we pay gst. Talk about confuse the crap put of drivers. No wonder some just give up.
 

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Not long ago we were fined for providing a service because we were not a taxi service. Now they say we are a taxi service so we pay gst. Talk about confuse the crap put of drivers. No wonder some just give up.
They DID NOT say you are a TAXI SERVICE. They DID NOT say you are a taxi. The said you are providing TAXI TRAVEL just like limos under the GST act.
 

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I'm still trying to get my head around why drivers are paying gst regardless of rules. Seems to be a lot of rule bending by tax office and uber just to evade the issue and take the money.
Firstly the drivers do not take any money nor do they issue a tax invoice to the riders, uber does, therefore uber is responsible for the gst. Secondly uber is based overseas thus leading to another issue is they are excluded from gst.
Not long ago we were fined for providing a service because we were not a taxi service. Now they say we are a taxi service so we pay gst. Talk about confuse the crap put of drivers. No wonder some just give up.
We are the underdog in this David & Goliath struggle. Its only the Pax who love us. Worldwide people are sick of Taxis. It is very confusing.
Uber will appeal as it does all regulations Worldwide. The struggle continues.
 
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