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Discussion Starter · #1 ·
My wife got a prius Uber X in Perth today, said the driver was nice, asked him how it was now he had to pay the GST....His answer:
" No ma'am, Uber pays the GST out of their 20% ...All I have to do is declare my income at end of the year"

So either I missed a big announcement.....or this guy is completely ignorant.....which is it?
 

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Most Uber drivers in Perth doesn't know about the ABN & GST. That's the problem, when I signed up for Uber, they didn't tell me anything about them as well. But, b/c I'm a social media forum troll. I learned of Partner People. And it's all good. www.partnerpeople.com.au

And I drive a TrailHawk Cherokee. Make a shout out if you see me. And give me 5* lol!
 

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Discussion Starter · #4 · (Edited)
If the PP thing works for you great Kojaxe they have a very simple and easy "plug n play" model for full time Uber X drivers that seems to tak a lot f the GST Grief out of the role.

As a previous (very) part time driver I was just doing it for fun and a bit of extra cash/beer money so when GST and ABN registration came in the risk vs reward just wasn't worth it .

If Uber X is not your main source of income then be aware that the depending on your main income job's income tax bracket the ATO may still slug you with extra Income tax on earnings from BOTH based on your ENTIRE earnings from ALL revenue sources (eg Bank interest, Share Dividends, Main Job salary, UberX/Partner People earnings) so the tax that PP are witholding may or may not equal the total extra you have to pay ...

E.g.
0 to $18,200 Nil Tax Payable
$18,201 to $37,000 19c for each $1 over $18,200 or 19% over 18k
$37,001 to $80,000 $3,572 plus 32.5c for each $1 over $37,000 or 32.5% over 37K

So lets say you earn $35,000 in your "main job" and then do Uber on the side for 12 months and make $1,000 per month average after GST and Uber Commission

Your total Taxable income is now $47,000 and you owe the ATO $6,171.68

Your employer would have paid $3,192 Tax on your main $35k job
Under $18k and PP will deduct no Income Tax ....

So of the $12k extra you earned with Uber you now owe the ATO an extra $2,979.67 (or about 25% of what you "earned" with UberX)

Of course you can claim GST Credits and write off a % of the depreciation on your Car ...but you also have to INCUR those expenses before you can claim them back from the ATO ...

e.g. Tyres: lets say you pay $100 each for some cheapies that's $400

some people think you get the WHOLE $400 back as a "Tax Deduction" - but in reality you only get to "reduce your taxable income" by the amount of the expense - and only in the proportion to which you used it to "earn assesable income"

Uber used for 30% of vehicle's total kilometers - therefore
$400 * 30% -= $120
so you get to reduce your Net Taxable income
from $47,000 to $46,880

So after forking out $400 for tyres .... you get about a $39 reduction in your overall Tax payable

PS I am NOT an accountant or tax agent - please verify everything with your own advisers as everyone's situation is different :)
 

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Upon signup, people complete standard tax form 'tax file number declaration', which asks if people want to claim the tax free threshold.
About half select 'no' to claiming the tax free threshold.
It seems most people who work 'part time' (less than $500 per week) don't claim the tax free threshold, so they shouldn't end up with a tax bill because we withhold a higher amount of tax.
Because we process people's income in two stages, pre-payroll (Income less expenses, then GST calculation = gross pay) then taking what's left over is used in payroll. This becomes your gross income for pay of which income tax is calculated.
Our plug and play (I like that term!) means that people's taxable income is lower and at the same time we're contributing to people's super funds.
Despite our fee and the cost of paying super and workcover, most people earn more with us, than doing it solo.
 

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That driver was in the "non educated" section of the economy..
I do believe Uber has told X drivers previously they don't have to register for GST.

It's on your best interests that you do.
 
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