How To Pay GST Tax For Uber Drivers in Australia

How To Pay GST Tax For Uber Drivers in Australia

February 24, 2020 12 By Kailee Schamberger


Thank you for watching Melbourne Lemonade. My name is Andriy. Before I proceed I have to make a disclaimer
that this video is presented for entertainment purposes only and that you are the one responsible
for all your dealings with the Australian Taxation Office. Good news for all Uber drivers in Australia:
in addition to paying income tax we now have to pay GST as well. Is it fair? Hell NO! But while the law is in place we have little
choice other than donating 10% of our Uber income for the good of this country. In case you didn’t know, Uber does report
our earnings to the ATO. I started driving last October, could not
be bothered with the GST at the time, and in March I received a letter from the Taxation
Office saying something along the lines of “Hello Mr Anderson! We know that you have taken the blue pill,
and that you are getting paid for providing ride sharing services. You better pay GST or else”. The good good news is that paying GST is extremely
easy. So here is how we do it. The first activity, which is a one off activity
that we need to do is getting an ABN and registering for GST. Registration for ABN is done at Australian
Business Register. When you get to their website there is a Register
button. Once you find that button you just keep clicking
and filling out the information until you get your ABN. Registration for GST is done at the ATO website,
and again, all you need to do is find the Register button and keep clicking until you
are done. Once you are registered, the ATO will will
start sending you email reminders every quarter asking you to lodge a Business Activity Statement
and to pay GST. Because I started driving Uber in October
and only thought of GST in March, I ended up calling the ATO, and they activated my
ABN retroactively so I could lodge a Business Activity Statement for a previous quarter. By the way, other than being the pure evil
– I am kidding by the way – guys at ATO are very helpful and good at what they do. A recurrent activity that we need to do every
quarter is to review our Uber payment summaries, lodge Business Activity Statement, and Pay
GST. Again, here is an email from the ATO reminding
me that I need to lodge a Business Activity Statement. After receiving this email I log in to my
Uber partner account and go to the tab called Tax Summary. For each quarter there are three PDF files
outlining how much I earned and what Uber reported to the ATO. You can see the most straightforward deductions
that you can do, which is tolls and Uber Service Fee. Calculating deduction for On Trip Mileage
is a bit more complicated, but it can be done as well, either by 60 c per km method or log
book method. With all the calculations in Excel spreadsheet,
I log into the Business Portal, which shows me For Action items, in this case two Business
Activity Statements that I need to lodge. From here you just need to keep clicking and
filling out the information, until you get to the Amount Owing page with the Pay button. That’s pretty much it. Do it once, and next quarter you will need
only 10 minutes for everything from start to finish.