# GST Surprise



## Jobless Broke (Jul 1, 2017)

Hi Uberall, 
Has anyone noticed that Uber is taking a portion of your GST. The GST is calculated on the fare that the rider pays. I had my GST done by H&R Block and they did not pick it up. I contacted the ATO with a complaint about my GST payments because I noticed that Uber as taking a portion of it for themselves. The ATO confirmed my figures that Uber was taking a portion of the GST. This is how they do it....They make a 75%(Yours) - 25% (Theirs) split on the fare paid by the Driver. This fare includes the GST. I contacted Uber on this issue and they admitted to taking the GST. Our contract states that we are responsible for paying all taxes but is it fair if they are taking a portion of the GST. What should happen is that we get 10% of the fare as GST which then goes to the ATO. Then they should make the 75%-25% split on the balance. Has anyone else picked this up and what can be done about it. I mean fair is fair. Our situation is bad as it is. The formulae currently use is.....(100%-25%)=75% (Your Payment) you then have to pay GST on the 100% collected. 
(100% x 10%)=GST. Below is and example with real money figures.

This is how it currently works.
Your rider pays $100.00 (I have had one of those, lucky me)
You get $75 and Uber gets $25.00. You then have to pay the ATO $100 x 10% = $10.00. Ok so far.
($75 - $10) = $65.00 (Your Share)

This is how it normally works in any other businesses.
You pay the ATO 10% of the $100.00 then you calculate your share.
($100-$10) = $90
$90.00 x 75% = $67.50 Uber gets $90 x 25% = $22.50
Notice how Uber is pocketing an extra $2.50 on every $100 dollars that you earn. Over a year of driving lets say you earned $30,000.00. You will have paid $750.00 on behalf of your riders. Yes, thats right, your rider should be paying the GST, not you. With the thousands of drivers all over the country this figure really adds up to a staggering amount of your hard earned dollars. I know how hard it is because I drive and I drive and I drive earning peanuts per hour. There are approximately 30,000 Uber drivers in Australia. Uber is pocketing an estimated $22,500,000.00 of your hard earned GST every year. Go figure?


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