# UberEats Tax Return Deductions



## pwdinwy

Anyone got any information on doing your tax return for UberEats (Bicycle)? Such as deduction where eligible for?

Plenty of information on Uber ride sharing but not a lot for UberEats.

Should be fairly simple for me as I do UberEats on a bicycle (no fuel bills).

Anyone? Anything? We all have to do our tax returns from next week onwards.


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## Jack Malarkey

pwdinwy said:


> Anyone got any information on doing your tax return for UberEats (Bicycle)? Such as deduction where eligible for?
> 
> Plenty of information on Uber ride sharing but not a lot for UberEats.
> 
> Should be fairly simple for me as I do UberEats on a bicycle (no fuel bills).
> 
> Anyone? Anything? We all have to do our tax returns from next week onwards.


Your deductions would include the business proportion of depreciation (including the small business instant asset writeoff) on your bicycle and any accessories such as a bicycle lock plus the cost of any repairs to it or maintenance of it.

Plus depreciation on your phone and the cost of your phone plan (relevant business proportion for both).


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## Surge Donut

You'll need to register for GST because all the Uber eats receipts show the GST component


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## UberDriverAU

Surge Donut said:


> You'll need to register for GST because all the Uber eats receipts show the GST component


Nope, if he's just doing EATS then there's no need to register for GST. If Uber isn't showing the correct details on their receipts then that's their problem.


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## Surge Donut

UberDriverAU said:


> Nope, if he's just doing EATS then there's no need to register for GST. If Uber isn't showing the correct details on their receipts then that's their problem.


I agree, it shouldn't apply to UberEats but that's what they are doing when I ordered last night and if I was a business hosting a meeting this would be good enough to claim a GST credit. I don't users why Uber shows GST on Eats but not Uber driving?


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## UberDriverAU

Surge Donut said:


> I agree, it shouldn't apply to UberEats but that's what they are doing when I ordered last night and if I was a business hosting a meeting this would be good enough to claim a GST credit. I don't users why Uber shows GST on Eats but not Uber driving?
> 
> View attachment 132016


Which is correct, $49.70 / 11 = $4.52. The $5 delivery fee has no GST payable on it.


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## Surge Donut

UberDriverAU said:


> Which is correct, $49.70 / 11 = $4.52. The $5 delivery fee has no GST payable on it.


But why is there GST in the first place?


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## UberDriverAU

Surge Donut said:


> But why is there GST in the first place?


Because you bought food from a place that is registered for GST?


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## Surge Donut

UberDriverAU said:


> Because you bought food from a place that is registered for GST?


Uber drivers are registered for GST and Uber doesn't show the GST.


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## uber_driver

mate
you should go for leg masaage and claim that on gst
legs must hurt pretty bad after cycling long


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## Jack Malarkey

The cost of safety equipment such as lights and a reflective vest would be deductible.


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## pwdinwy

So what do I do if I threw away my receipts...? Can I still claim it and make a note of it somewhere in a log book or something?

Also when I declare my income, do I declare the gross amount before uber take their fee, or after?

From what I understand, I can claim the uber fee back as a deduction. ( which is good but, but actually means I will get money back because the uber fee is greater than my tax rate which is 15% because of the 417 visa)


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## UberDriverAU

pwdinwy said:


> So what do I do if I threw away my receipts...? Can I still claim it and make a note of it somewhere in a log book or something?


You need to be able to substantiate your claims with written evidence. If you paid cash and threw away the receipt that's going to be impossible, but if you paid on card and have a record on a bank statement then that _might_ satisfy the ATO's requirements. You'd need to ask them.


pwdinwy said:


> Also when I declare my income, do I declare the gross amount before uber take their fee, or after?
> 
> From what I understand, I can claim the uber fee back as a deduction. ( which is good but, but actually means I will get money back because the uber fee is greater than my tax rate which is 15% because of the 417 visa)


The gross amount before Uber's fee is your assessable income, and Uber's fee would be an allowable deduction. Excluding Uber's fee from your income *and* claiming a deduction would be double dipping.


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## Jack Malarkey

pwdinwy said:


> So what do I do if I threw away my receipts...? Can I still claim it and make a note of it somewhere in a log book or something?
> 
> Also when I declare my income, do I declare the gross amount before uber take their fee, or after?
> 
> From what I understand, I can claim the uber fee back as a deduction. ( which is good but, but actually means I will get money back because the uber fee is greater than my tax rate which is 15% because of the 417 visa)


The strictly detailed expense substantiation rules of the income tax law don't extend to bicycle expenses of someone carrying on a business who doesn't use the bicycle for overseas travel expenses or for domestic travel expenses involving at least one night away from home.

The strict substantiation rules apply to the work expenses of employees. They also apply to travel expenses of the kind mentioned above and to car expenses of those carrying on a business as well as employees.

Car expenses don't include bicycle or motor cycle expenses.

Although the strict substantiation rules don't apply, you still need to do what you can to corroborate the expense. If you bought a cheap bicycle, I doubt the Tax Office would get very excited. But if you are claiming the purchase of an expensive bicycle, they may well scrutinise the expense closely if you are audited.

You would return the gross amount as assessable income and deduct Uber's service fee among your other deductions.

The special 15% tax rate for working holiday makers does NOT extend to the profit from carrying on a business (including UberEATS). [This last paragraph is incorrect: see below.]


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## pwdinwy

Jack Malarkey said:


> The special 15% tax rate for working holiday makers does NOT extend to the profit from carrying on a business (including UberEATS).


So what will be my tax rate?

Will the 15% tax rate still apply to my other employment (not business related, normal employment)??


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## Jack Malarkey

pwdinwy said:


> So what will be my tax rate?
> 
> Will the 15% tax rate still apply to my other employment (not business related, normal employment)??


pwdinwy, I am not familiar with your individual circumstances so I can't provide definitive answers. It would be prudent for you to seek the advice of the Australian Taxation Office or a registered tax agent.

However, I suspect the position is as follows.

If you are a foreign resident, your net business income would be taxed at 32.5% up to $37,000 with higher rates applying to that part of the net income over $37,000. [The preceding sentence is incorrect: see below.] As a foreign resident, you would NOT be liable for the 2% Medicare levy.

Here are details of the standard tax rates applicable to foreign residents: https://www.ato.gov.au/rates/individual-income-tax-rates/?page=1#Foreign_residents.

The small business income tax offset, however, would reduce these tax rates (in effect) by 8% for the 2016-17 income year with a maximum tax saving of $1,000. See https://www.ato.gov.au/Business/Inc...s/In-detail/Small-business-income-tax-offset/.

You would still be eligible for the 15% tax rate on your employment income derived from 1 January 2017 (but not before that date) for the first $37,000 of this kind of income. See https://www.ato.gov.au/Individuals/...s/Coming-to-Australia/Working-holiday-makers/.

I hope this information helps.


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## pwdinwy

Spoke to the ATO earlier, they said that I should still be on the 15% tax rate for any income below $37k. Hopefully this is true. Thanks for information anyway


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## Jack Malarkey

Thanks, pwdinwy. I have now looked at this further and agree with the advice the Tax Office has given you.

I apologise for my error. I have also annotated my earlier comments to draw attention to the error.

Here is a relevant part of the explanatory memorandum that accompanied the amending legislation and which supports the Tax Office interpretation:

'The Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016 applies a 15 per cent income tax rate to working holiday maker taxable income (that is assessable income derived from Australian sources by working holiday makers less relevant deductions) on amounts up to $37,000, with ordinary tax rates for taxable income exceeding this amount.

Date of effect: The amendments apply from 1 January 2017.'

(http://parlinfo.aph.gov.au/parlInfo/download/legislation/ems/r5790_ems_ba1c8a2d-433f-4895-8e1f-e9e05731f9ea/upload_word/16204EM.docx;fileType=application/vnd.openxmlformats-officedocument.wordprocessingml.document)


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## pwdinwy

How about working out your phone bill deductions? How do you work out the percentage of use? Does this need to be proven?


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## Jack Malarkey

pwdinwy said:


> How about working out your phone bill deductions? How do you work out the percentage of use? Does this need to be proven?


See https://www.ato.gov.au/Individuals/...bile-phone,-internet-and-home-phone-expenses/.

As mentioned earlier, the strict substantiation provisions don't apply for this kind of expense by those carrying on a business. What you do need is a reasonable basis for apportionment.


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## pwdinwy

How would you work out the apportionment?


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## Jack Malarkey

Using the method explained in the link would get you across the line.


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## pwdinwy

Jack Malarkey said:


> Using the method explained in the link would get you across the line.


Probably not really worth it for me, not been doing eats too long so I worked out I could claim maybe $3


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## pwdinwy

As for the earning from this week, which will be paid next week, do I include it in this years tax return, or next years? (because I won't be paid it until after July 1st)


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## Jack Malarkey

pwdinwy said:


> As for the earning from this week, which will be paid next week, do I include it in this years tax return, or next years? (because I won't be paid it until after July 1st)


Next year's.


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## pwdinwy

Yet another question. Do we declare UberEats as PSI (personal services income)???


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## Jack Malarkey

pwdinwy said:


> Yet another question. Do we declare UberEats as PSI (personal services income)???


No, as you have multiple customers.


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## pwdinwy

Ok thank you, does this still apply if I am doing work via Airtasker as well?


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## Jack Malarkey

pwdinwy said:


> Ok thank you, does this still apply if I am doing work via Airtasker as well?


Yes.


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## pwdinwy

Ok, but how come? The services we provide are essentially some sort of labour, is that right?


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## Jack Malarkey

pwdinwy said:


> Ok, but how come? The services we provide are essentially some sort of labour, is that right?


True but the personal services income rules don't apply if you are carrying on a personal service business because you have multiple clients. See https://www.ato.gov.au/business/personal-services-income/working-out-if-the-psi-rules-apply/.


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## UberDriverAU

The PSI rules are intended to prevent a tax advantage obtained by funneling income earned mainly from labour through a company. If you've included such income in your personal tax return the PSI rules aren't relevant.


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## pwdinwy

So the headache begins...

The tax summary that Uber provides show earning for all of June, though some of that wasn't paid until early July, so I guess that doesn't give me an accurate figure I can use on my tax return.

And the payment summaries only show the earnings without incentives, so neither of these documents are reliable in giving me figures I can use for my tax return.

The best way I can think of is my earnings (the exact figure paid in my bank account) + the uber fee. I think this gives me the figures I need to use?

Anyone got any advice on how to get my figures?


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## Jack Malarkey

pwdinwy said:


> So the headache begins...
> 
> The tax summary that Uber provides show earning for all of June, though some of that wasn't paid until early July, so I guess that doesn't give me an accurate figure I can use on my tax return.
> 
> And the payment summaries only show the earnings without incentives, so neither of these documents are reliable in giving me figures I can use for my tax return.
> 
> The best way I can think of is my earnings (the exact figure paid in my bank account) + the uber fee. I think this gives me the figures I need to use?
> 
> Anyone got any advice on how to get my figures?


Your way of calculating assessable income would give you the correct figures. (Tips are also assessable income under the income tax law.)

I assume your service fee is 5%. To work backwards from the net amount credited to your account, divide that amount by 19 and add that to the net amount. Let's say you received $95 in your account. Divide $95 by 19 and you get $5 as the service fee. Add $5 to $95 and you get $100 gross.

It's concerning that the payment summaries don't include the incentive payments.


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## pwdinwy

Jack Malarkey said:


> Your way of calculating assessable income would give you the correct figures. (Tips are also assessable income under the income tax law.)
> 
> I assume your service fee is 5%. To work backwards from the net amount credited to your account, divide that amount by 19 and add that to the net amount. Let's say you received $95 in your account. Divide $95 by 19 and you get $5 as the service fee. Add $5 to $95 and you get $100 gross.
> 
> It's concerning that the payment summaries don't include the incentive payments.


Thanks Jack. Though I believe the ubereats fee in Perth is 35%.

As an example. One week I received $253.48 gross income. Fees paid were $88.71. However in my bank account I received $189.10, and therefore I also received $24.33 in incentive payments.

The gross amount I will use in my tax return will be what I received in my bank ($189.10) + the uber fee ($88.71)

189.10 + 88.71 = $277.81

Sound right to you?


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## Jack Malarkey

pwdinwy said:


> Thanks Jack. Though I believe the ubereats fee in Perth is 35%.
> 
> As an example. One week I received $253.48 gross income. Fees paid were $88.71. However in my bank account I received $189.10, and therefore I also received $24.33 in incentive payments.
> 
> The gross amount I will use in my tax return will be what I received in my bank ($189.10) + the uber fee ($88.71)
> 
> 189.10 + 88.71 = $277.81
> 
> Sound right to you?


Yes it does, pwdinwy.

The advised rates for UberEATS in Canberra are low compared with other Australian cities (including Perth) but the service fee is only 5%. Interesting. See https://newsroom.uber.com/australia...ign=Canberra+Soft+Launch+Commes&utm_source=ET.


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## pwdinwy

Jack Malarkey said:


> Yes it does, pwdinwy.
> 
> The advised rates for UberEATS in Canberra are low compared with other Australian cities (including Perth) but the service fee is only 5%. Interesting. See https://newsroom.uber.com/australia...ign=Canberra+Soft+Launch+Commes&utm_source=ET.


Just a thought, instead of declaring your uber earnings + uber fees as your income and deducting your uber fees as expenses, couldn't you just declare your uber earnings and not declare the uber fees as expenses, effectively, using either method, your taxable income remains the same? Or is there something wrong there?


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## Jack Malarkey

pwdinwy said:


> Just a thought, instead of declaring your uber earnings + uber fees as your income and deducting your uber fees as expenses, couldn't you just declare your uber earnings and not declare the uber fees as expenses, effectively, using either method, your taxable income remains the same? Or is there something wrong there?


It's true that the result would usually be the same but declaring assessable income and claiming relevant expenditure such as the service fee as a deduction reflects better the design of the Australian taxation system.

It can also make a difference to tax payable in specific circumstances.

Take, for example, an Uber driver who has made a loss that they wish to offset against other income. The non-commercial losses rules often deny a loss to Uber drivers and others in similar circumstances. Those rules don't deny the loss if the taxpayer has assessable income from the business of at least $20,000.

If you simply return the net income after the application of the service fee, you may unnecessarily put yourself under $20,000 and deny yourself a loss to which you are entitled.


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## Bandy

Jack Malarkey said:


> Your deductions would include the business proportion of depreciation (including the small business instant asset writeoff) on your bicycle and any accessories such as a bicycle lock plus the cost of any repairs to it or maintenance of it.
> 
> Plus depreciation on your phone and the cost of your phone plan (relevant business proportion for both).


Not to mention the dry cleaning costs of your lycra body suit...


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## fruber

when can you officially add deductions for your tax return for Eats? I applied to drive for Eats, but I havent been officially made a driver yet (still onboarding).

However I just got a $500 repair bill for my car yesterday which i'll use for Eats. Can I claim that on my tax return next year? Or can I only claim things AFTER i'm officially a driver?


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## Jack Malarkey

fruber said:


> when can you officially add deductions for your tax return for Eats? I applied to drive for Eats, but I havent been officially made a driver yet (still onboarding).
> 
> However I just got a $500 repair bill for my car yesterday which i'll use for Eats. Can I claim that on my tax return next year? Or can I only claim things AFTER i'm officially a driver?


fruber, it's not necessary that you be officially a driver at the time you incur the expenditure on repairs. It's enough that you hold or use the car for the purpose of producing assessable income.

You can be in the early stages of a business transporting food before you actually transport the food or obtain the final approvals to do so.

Note, however, that you can't claim a repairs deduction for capital expenditure. This means that if you only recently acquired the car and the repairs were to correct defects present at the time of purchase, the expenditure is not deductible.

$500 is a relatively small repair bill and I doubt very much you will face any difficulties from making the claim if you have relevant receipts.


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## fruber

quick question - i read the uber tax summary forms were incorrect last ear. does anyone know if they have been fixed now?

for any tax return, would you just put the Gross Fares (Uber Service Fee included) as the assessable income on the tax return form? 

My returns are usually fairly simple, so i have no real need to go to an accountant, but i might just this first year, as you can deduct it again anyway


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## Jack Malarkey

fruber said:


> quick question - i read the uber tax summary forms were incorrect last ear. does anyone know if they have been fixed now?
> 
> for any tax return, would you just put the Gross Fares (Uber Service Fee included) as the assessable income on the tax return form?
> 
> My returns are usually fairly simple, so i have no real need to go to an accountant, but i might just this first year, as you can deduct it again anyway


I don't know for sure, fruber, but I'm confident you can rely on the annual tax summaries in practice. Any minor discrepancies can be expected to be timing issues and not of particular interest to the Tax Office. I suspect the Tax Office itself would have recourse to the annual tax summary figures.

For income tax purposes, include the gross amount (including the service fee) in assessable income and claim the service fee as a deduction.


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## Arvin2nd

hi, I am trying to claim my tax return ( if I get this issue correctly). now I am in "
*Business/sole trader, partnership and trust income (including loss details)*
" part. 
in 
*Business payment summaries:*
what should I write in this blanks sections? and how can I calculate this amounts?

Payer's name
Payer's ABN
Payment type *
Gross payments
$.00
Enter whole numbers only
Tax withheld
$
Income type
Business Income
Primary or Non-primary production *

Primary production
Non-primary production


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## Hugh G

Arvin2nd said:


> *hi, I am trying to claim my tax return*


Entitlement Attitude ????

Note: Sometimes YOU MAY ACTUALLY HAVE TO PAY TAX, NO TAX WAS "WITH HELD" BECAUSE YOU ARE NOT AN EMPLOYEE !


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## macbri

Jack Malarkey said:


> I don't know for sure, fruber, but I'm confident you can rely on the annual tax summaries in practice. Any minor discrepancies can be expected to be timing issues and not of particular interest to the Tax Office. I suspect the Tax Office itself would have recourse to the annual tax summary figures.
> 
> For income tax purposes, include the gross amount (including the service fee) in assessable income and claim the service fee as a deduction.


This is contrary to what I was told by ATO and I have got a private tax ruling on it.

My assessable income is my net payment from Uber that hits my bank account every week.

Uber service fee will not show on my tax return as an expense ,as well provided Uber payments to me are less than $75k pa and I don't proved a ride sharing service then I won't be liable tomGST.

This is how it operates with any courier business so why would income from Uber eats be treated any different.

Any queries,contact the ATO directly rather than relying on advice in this forum,they really are very helpful and not out to screw u.


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## Jack Malarkey

macbri said:


> This is contrary to what I was told by ATO and I have got a private tax ruling on it.
> 
> My assessable income is my net payment from Uber that hits my bank account every week.
> 
> Uber service fee will not show on my tax return as an expense ,as well provided Uber payments to me are less than $75k pa and I don't proved a ride sharing service then I won't be liable tomGST.
> 
> This is how it operates with any courier business so why would income from Uber eats be treated any different.
> 
> Any queries,contact the ATO directly rather than relying on advice in this forum,they really are very helpful and not out to screw u.


1. Thanks, macbri, for this information and for your thoughts.

2. I'm grateful for the opportunity to make some observations.

3. The view confirmed by the Australian Taxation Office in its private ruling to you surprises me as it seems contrary to the general scheme and detailed application of the income tax law, relevant Tax Office guidance, and the terms of the Uber contract.

4. A private ruling binds the Tax Office only in relation to the taxpayer receiving the ruling.

5. The Tax Office ride-sourcing guidelines treat the driver as receiving the gross fare and paying Uber the service fee:

*Here's how a ride is taxed*

GST

Calculate GST on the full fare, say, $55 (payments received from passengers include the GST that you have to pay):


The GST you need to declare and pay is $5.
You receive $44 from the facilitator after they take their fee of $11 from the $55 fare.
Some facilitators pay GST on the $11 income they receive - $1. You may be entitled to claim a GST credit. See here.
Income tax

You need to include $50 as income in your income tax return - this is $55 less the $5 GST that you have to pay.

If you are entitled to claim a GST credit for the $1 facilitator fee, you can claim a tax deduction of $10 in your income tax return. However, if you are not entitled to a GST credit for the facilitator fee you can claim $11 as a tax deduction in your income tax return.

[end of extract]

(https://www.ato.gov.au/General/Ride-sourcing-and-tax/Income-tax-and-ride-sourcing/)

6. The above example involves a rideshare driver but there is no reason to suspect an UberEATS driver would be relevantly different.

7. I don't have the benefit of the facts as you explained them in your request for a private ruling and whether or not you provided the Tax Office with a copy of your contract with Uber.

8. In most cases, the difference in approach won't make any practical difference.

9. I can think of one case, however, where it would.

10. That case involves the application of the non-commercial losses rules. Under those rules, a driver making a loss cannot offset it against other income in the current year unless they have relevant assessable income of at least $20,000: see https://www.ato.gov.au/Business/Non-commercial-losses/.

11. Let's say Georgina is an UberEATS driver in Sydney making a loss has gross fares of $23,000 and pays a service fee of 30%. That comes to a service fee of $6,900.

12. If Georgina simply adds up the net amounts credited to their account, she will have assessable income of $16,100 ($23,000 minus $6,900). She is unlikely to be able to offset the loss against other income as assessable income is under $20,000.

13. On the other hand, if Georgina treats the gross fares of $23,000 as assessable income and claims a deduction for the service fee of $6,900, she is likely to be able to offset the loss against other income in the current year as her relevant assessable income is at least $20,000.


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## macbri

I don’t provide a ride sharing service just a food delivery service and Uber is 1 platform that I can choose to provide this service.

If I wish ,I could provide similar service through Deliveroo(who only show net driver payment in their statements),menulog etc.

My turnover is crucial as assessable income over $75k means I am liable for GST on all my income so I was very clear in my dealings with ATO(my background is I am a qualified accountant so understanding identified issues very clearly with ATO)

My ruling states that as a food delivery courier what hits my bank account is my assessable income,

Of course providing a ride sharing service as well as eats would be completely different as GST is applied on income 

Any drivers who are doing eats and unsure of tax treatment,talk to ATO directly and get a private tax ruling.


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