A business normally only has to register and collect for GST when sales exceed $75k pa.
The typical Uber driver is part time and earning around $30k pa.
Apparently the taxi industry has a special provision that forces them to register for GST regardless of the $75k provision, and Uber has now been deemed to be a taxi service by the ATO.
The taxi industry has been lobbying to have Uber drivers sit within the same rules and regulations as taxi drivers. To date, more than 9000 uberX drivers operating across major states in Australia have been able to avoid GST payments by arguing they fall under the $75,000 turnover threshold at which GST applies.
However, the ATO's new guidance states: "If you drive passengers in a car for a fare, you may be providing 'taxi travel', and if you are, you need to register for GST."
This will not stop Uber imho. It could be argued that it will reduce the competition amongst drivers, who are lining up in the thousands to join. My best mate is going through the registration process and I am watching with interest.
