# ATO state GST calculated on total fare



## Liam Hodgkinson (Mar 15, 2017)

Just reading up on ATO's guidance for Uber Drivers and their position is not necessarily correct under Income Tax Assessment Act (derivation of income);

Okay, so ATO want their money, and as they cannot seem to force Uber BV to pay tax in Australia, ATO are attempting to have the Drivers pay the Uber Fee share of GST for each ride... effectively increasing the Uber Fee by the 10% more than their stated fee; so if 25% is the going rate, then if the driver followed the ATO guidance, they'd be paying an effective 27.5% - with ATO getting every tax cent and Uber continuing to flout their tax obligations... Doesn't seem fair to me!


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## Jack Malarkey (Jan 11, 2016)

The rules for deriving income under the Income Tax Assessment Act differ from those for GST liabilities under the GST legislation.

Income tax is a tax on taxable income, which is assessable income minus deductions. It's a profits-based tax.

GST is a tax on turnover and not profits so does not take into account expenses other than by crediting any relevant proportion of GST paid on those expenses. 

A fuel retailer, for example, can deduct the cost of fuel purchases for income tax but not GST purposes but can claim the GST input tax credits on the fuel.


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## whocareaboutPAX (Apr 11, 2016)

You are wrong. Uber does not charge GST, therefore you should not be remitting GST to the ATO. Continue on with life.


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## χ²(1) (Jun 1, 2016)

Liam Hodgkinson said:


> Just reading up on Income Tax Assessment Act (derivation of income);
> 
> Okay, so ATO want their share of GST for each ride...


You were reading the wrong Act. The relevant Act regarding GST is _A NEW TAX SYSTEM (GOODS AND SERVICES TAX) BILL 1998_.


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## Instyle (Oct 18, 2014)

Has always been calculated on what the customer pays. Otherwise the passenger would receive two receipts, one from the driver and one for Uber which they do not! It points out the unjust that Uber drivers in particular face, all the more reason to take stand and not promote such ethics.


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