# ATO assesses taxi drivers at $1.30 per kilometre where proper records not kept



## Jack Malarkey (Jan 11, 2016)

Australian Taxation Office:

Taxi cents per kilometre earnings rate

The cents per kilometre earnings rate is the average amount of income earned by a taxi for the total kilometres travelled by the taxi in a year.

The rate includes GST. It does not take expenses into account. It only measures gross taxi takings per kilometre of distance travelled.

Taxi operators and drivers can use the cents per kilometre rate to:

compare their performance to the rest of the taxi industry

check that their tax records accurately reflect their income.

Tax agents and accountants can use the cents per kilometre rate to assist them in preparing tax returns and business activity statements for their clients.

We use the cents per kilometre rate in cases where taxi operators or drivers do not have proper records.

The rate has been developed in consultation with taxi industry participants.

See also:

Benchmarks - Taxi drivers and operators: https://www.ato.gov.au/Business/Sma...enchmarks-A-Z/R-Z/Taxi-drivers-and-operators/

Current rate

The latest rate developed is $1.30/km.

Last modified: 03 Jul 2018

QC 17588

(https://www.ato.gov.au/Business/GST...r-vehicle-and-transport/GST-and-taxis/?page=4)


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## Jack Malarkey (Jan 11, 2016)

I wouldn’t want the Tax Office’s benchmark rate for taxis of $1.30 per kilometre applied to my part-time rideshare and food delivery driving.

I have just done the calculations for income tax purposes for the 2018-19 income year.

My net income (profit) was $5,466 and my gross income was $12,278.

Applying the taxi benchmark of $1.30 per kilometre even just to my business kilometres results in gross income of $18,742.

My gross income ended up being 85 cents per business kilometre rather than $1.30. My profit was 38 cents per kilometre.


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## everythingsuber (Sep 29, 2015)

More than reasonable for cabs.
Just looking at the lifetime total on this cab that I am driving. 156 cents earned per kilometre on just under 500 thousand total kilometres traveled. Should be a little better than that but this cab does spend a lot of time in the outer suburbs and you tend to chase work a little wider. 

Uber should be 75 cents per kilometre at a guess?


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## Jack Malarkey (Jan 11, 2016)

everythingsuber said:


> More than reasonable for cabs.
> Just looking at the lifetime total on this cab that I am driving. 156 cents earned per kilometre on just under 500 thousand total kilometres traveled. Should be a little better than that but this cab does spend a lot of time in the outer suburbs and you tend to chase work a little wider.
> 
> Uber should be 75 cents per kilometre at a guess?


Very interesting. Thanks, @everythingsuber.

In my case, Uber works out at 85 cents gross per kilometre (on Canberra rates). 75 cents does seem about right more generally.


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