# GST and Income Tax deductions



## Become_The_Best (May 13, 2018)

Can we claim these expenses for GST and Income Tax

1) Vehicle Registration fees
2) Driver's Authorization Fees 
3) Booked Hire Service License Fees 

And any other costs incurred for the purpose of starting UBER??

Thanks


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## joffie (Jan 31, 2016)

What did the tax office say when you asked them?


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## Become_The_Best (May 13, 2018)

joffie said:


> What did the tax office say when you asked them?


Should ask them tomorrow. But they have no idea what they are talking about.


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> Can we claim these expenses for GST and Income Tax
> 
> 1) Vehicle Registration fees
> 2) Driver's Authorization Fees
> ...


You can claim all those expenses for GST (if you paid GST on them) and income tax. For vehicle registration fees, you would claim only the business portion.

The same applies to other costs incurred for Uber.


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## Freibuis (Nov 23, 2017)

look at the receipts. if there is a gst components then you can get credit for them
income is always calculated after business expenses.
income = income - expsenses (including gst colletction and business income tax)




so it would be taken out before income tax (unless you are doing this directly as TFN not abn .. uber doesnt allow this anymore)


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## Jules66 (Feb 22, 2017)

Technically I am not sure you can claim costs setting up your buisness. Ie costs before you have made money. But even if that's true it's unlikely you would get pinned for it. I don't think you can claim registration fees unless you are using the logbook method (not $ per km).

I thing that also goes for claiming gst on items you purchased before registering for gst.


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## Jack Malarkey (Jan 11, 2016)

It's unlikely that with a rideshare business there will be costs incurred in establishing the business rather than in carrying on the business.

But if there are, subsection 40-880(2A) of the _Income Tax Assessment Act 1997 _can be expected to come to the rescue and allow immediate deductibility for small business entities.

To qualify, the capital expenditure must relate to a proposed business and incurred in obtaining advice or services for the proposed structure or operation of the small business.

Alternatively, it must be a fee, tax or charge paid to a government or government agency in Australia relating to the set up or operating structure of the small business.

For more information about this deduction,
see https://www.ato.gov.au/forms/guide-to-depreciating-assets-2017/?page=19.

And here is the relevant legislation itself: http://www5.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s40.880.html.


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