What is ride-sourcing?

• Ride-sourcing is an ongoing arrangement where you make a car available for public hire to passengers.
• A passenger uses a third-party website or app to request a ride.
• You use the car to transport the passenger for payment (a fare).

Registering for GST

• If you are providing ride-sourcing you must register for GST regardless of how much you earn.
• You can register for GST in the following ways:
  • Online: you can register for GST through ATO Online services for individuals or ATO Online services for business.
  • Phone: call the ATO on 13 28 66 – 8am-6pm Monday to Friday.
  • Form: order a form online from the ATO Publication Ordering Service site. The site operates similarly to online shopping sites, except the form is free! The form is called Add a new business account (NAT 2954). Enter the form name or NAT number (2954) into the search box.
• Your GST registration needs to start from the date you started ride-sourcing. Once registered for GST, provide your ABN to your ride-sourcing platform as they may issue tax invoices for you.

Ride-sourcing income, expenses and GST overview

• Your total income may include:
  • interest you receive from banks
  • some payments you receive from Services Australia
  • dividends you were paid from holding shares
  • other investment income
  • foreign income – including overseas rental income and internet sales
  • other business income – for example a second business.
• When you start paying for expenses that are related to your ride-sourcing business, you can claim tax deductions on some of these. To claim car expenses, you can use the cents per kilometre method or the logbook method.
• Your income tax reports your total income and your deductions. You do not record GST in your income tax return.
• As a ride-sourcing business you will collect GST on passenger fares and pay GST on business purchases. At the end of a reporting period you may either have to pay GST to the ATO or the ATO will pay you GST credits.

Pay as you go (PAYG) instalments

• Voluntarily enrolling in the pay as you go (PAYG) instalments system can reduce cash flow issues.
• It spreads out your tax contributions, making them more manageable.
• To enrol, use ATO Online services for individuals or ATO Online services for business.

The ATO App

• Download the ATO App from Google Play or the Apple App Store.
• Use the ATO Apps ‘myDeductions’ tool to record your ride-sourcing expenses, logbook your vehicle trips, and to keep photos of your invoices and receipts.
• Your ATO App ride-sourcing data can be exported to a spreadsheet to help you calculate your GST obligations.

GST reporting

• GST must be calculated on the full fare, not the net amount you received after deducting any fees or commissions.
• Report your GST collected and paid monthly or quarterly in your business activity statement (BAS).
• Your GST obligation is calculated by deducting GST paid from GST collected.

Deductions

• If you use your car for both personal and work-related use you will apportion your car expenses and claim only the portion for work-related use.
• There are two different ways you can claim car expenses:
  • the cents per kilometre method
  • the logbook method.

Record keeping

• Keep records regularly to make reporting at the end of the year easier and quicker.
• Keep the following records:
  • statements showing income from ride-sourcing
  • receipts of any expenses you want to claim deductions for
  • a logbook to track your trips (only claim the business portion).

More information

• https://www.ato.gov.au/General/The-sharing-economy-and-tax/Ride-sourcing/ 
• 13 18 66 (Mon-Fri 8am-8pm)
• https://tv.ato.gov.au/ (search for ‘ride-sourcing’)