Uber drivers must register for GST
In ‘Uber BV v FC of T‘, the Federal Court has held that persons who are Uber drivers are required to be registered for GST purposes. The court considered that the provision of a ride by an uberX Partner to a customer was the supply of “taxi travel” for GST purposes.
Enterprises with a turnover of less than $75,000 do not need to register for GST but there is a special rule or exemption, created by s 144-5(1) in Pt 4-5 of the A New Tax System (Goods and Services Tax) Act 1999, which has the effect that taxi and limousine operators are required to be registered, regardless of turnover.
This high profile case confirmed an earlier direction from the ATO that an Uber driver must be registered for GST, irrespective of any turnover threshold.
If you have any questions or enquires, please contact:
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@northadvisory.com.au
“In a key Federal Court decision, Uber drivers were held to be supplying ‘taxi travel’ and therefore are required to register for GST regardless of their turnover.”
About the author
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
Uber drivers in Australia are treated as supplying “taxi travel” for GST purposes.
This classification means that the rides they provide count as taxable supplies under GST law and trigger GST obligations.
The normal $75,000 GST threshold does not apply — registration is required from the first dollar earned.
Even if a driver’s gross income from ridesourcing is very low, GST registration is mandatory.
Registered drivers must complete Business Activity Statements to report and pay GST.
BAS lodgement is typically required monthly or quarterly to declare GST on their ridesourcing income.
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Frequently Asked Questions
Do Uber drivers need to register for GST in Australia?
Yes — Uber drivers who provide ridesourcing services must register for GST, as their services are treated as supplying “taxi travel” for GST purposes, which removes the normal turnover threshold requirement.
Is there a turnover threshold for GST registration if you drive for Uber?
No — unlike most small businesses, Uber drivers must register for GST from their first dollar of ridesourcing income, even if their total earnings are below the usual $75,000 threshold.
What other registration do Uber drivers need besides GST?
Drivers must also have an Australian Business Number (ABN) to carry on their ride-sourcing enterprise and register for GST under that ABN.
What does being registered for GST mean for Uber income?
Once registered, drivers need to report and pay GST collected on fares, lodge Business Activity Statements (BAS), and may be able to claim GST credits on eligible business expenses.
Are there penalties for not registering for GST as an Uber driver?
Yes — failing to register when required can lead to penalties and interest from the tax office for non-compliance with GST obligations.
Why do Uber drivers have to register for GST even if they earn under $75,000?
Because Uber driving is treated as providing “taxi travel” for GST purposes, which requires GST
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