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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

SMSFs: beware of illegal early super release

July 13, 2018

The Australian Tax Office (ATO) is reminding self-managed super fund (SMSF) trustees to beware of allowing members to access their super early.

A self-managed super fund (SMSF) trustee must meet a condition of release before any funds can legally be released.

The ATO can issue severe penalties if you or a SMSF member access your super before you are legally entitled to do so.

Some consequences of getting caught up in an illegal super scheme include the disqualification of trustees, imposition of administrative penalties, the fund being made non-complying and prosecution.

The Tax Office encourages those members who have been involved in an illegal super scheme to contact them immediately. The ATO will review your voluntary disclosure and take your circumstances into account when determining any penalties.