Uber Drivers Warned To Expect ABN, GST Registration Demands

The Australian Tax Office (ATO) has warned operators of the ride-sharing service Uber to expect a knock at the door should they attempt to avoid paying the Goods and Services Tax (GST).

Operators were told this week they required an Australian Business Number (ABN) to accept payment for ride-sharing services in Australia.

As such payments were in return for services, the tax office said, they would be subject to the GST.

The ATO claims Uber is a ‘taxi-like’ service, and its operators should therefore be subject to the same or similar guidelines faced by taxi owners and drivers.

"The existing law applies equally whether the buyer or seller come together at a bricks and mortar business or via a mobile phone app or a website," Deputy Tax Commissioner James O'Halloran said, speaking with the ABC.

"We understand that people don't often consider the tax consequences of new and emerging business models. Our first step is to assist taxpayers involved in the sharing economy to meet their tax obligations."

Mr O’Halloran said Uber operators (and other online businesses) were required to report income to the ATO and file Business Activity Statements (BAS), along with collecting and paying the GST.

In a statement to the ABC, Uber said the ATO has “taken it upon itself to dictate government policy for the sharing economy", and pointed to other small businesses which were exempt from paying GST when earnings were less than $75,000.

Federal Government