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Clarification on ride-sourcing

The Federal Court has recently agreed that ride-sourcing is taxi travel.

For GST purposes, the word taxi means a car (vehicle) made available for public hire that is used to transport passengers for fares.

State and territory laws regulating transportation of passengers contain specific definitions of the term taxi. A vehicle can be considered a taxi for GST purposes, but not for state and territory regulatory purposes.

The ATO defines ride-sourcing as an ongoing arrangement where a driver makes a car available for public hire; a passenger uses, for example, a website or smartphone app provided by a third party to request a ride, i.e. Uber, GoCar and the driver uses the car to transport the passenger for payment with a view to profit.

For those who provide ride-sourcing services, you are most likely to be running a business and therefore, you must:
– keep records
– have an Australian Business Number (ABN)
– be registered for GST, regardless how much you earn
– lodge Business Activity Statements (BAS)
– pay the GST portion of the full fare received from passengers for each trip
– include income from ride-sourcing in your income tax returns.

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News

Proactive consolidation with ILBAs

November 13, 2019

Inactive low-balance accounts (ILBAs) are a new category account that needs to be reported and paid to the ATO. This was introduced in the Treasury Law Amendment (Protect Your Superannuation Package) Bill 2019 that came into effect on 1 July 2019 after first being announced in the 2018-19 Federal Budget.

ILBAs are designed to protect accounts from fee erosion. Where possible, the ATO will proactively consolidate super on behalf of an individual.

A superannuation account is considered an ILBA if the following criteria are met:

Funds are required to identify ILBAs on 30 June and 31 December each year, then report and pay them to the ATO by the statement date.

Individuals that have an account that they do not want to be transferred to the ATO as an ILBA, can consolidate super accounts using ATO online services through myGov, contact their super fund for more information or authorise their super fund to provide a written declaration to the ATO.