Our focus
If you provide taxi, limousine or ride-sourcing services you must register for goods and services tax (GST) regardless of your turnover. You must collect and pay the GST and income tax on all your rides and all other business income.
We use a range of data sources, including data provided to the ATO by taxi and ride-sourcing platforms, to review the tax file number (TFN), Australian business number (ABN) and GST registration status and other activities of drivers in this industry.
If you’re a driver in this industry and don’t have a TFN, ABN and GST registration, you need to:
- register now
- collect, report and pay GST on all your future rides as required under the law
- report all your income from your rides in your next tax return.
How to get it right
To get it right, you’ll need a TFN, an ABNExternal Link and register for GST. If you’re not using a tax professional for your tax affairs, the best way to securely register, report and pay your GST on all your future rides is to get a myIDExternal Link and register for ATO online services or Online services for business.
If you don't register for GST, penalties and interest may apply. If you haven’t declared all your income for ride-sourcing in prior years you can amend a previous tax return.
You can also contact your tax professional to obtain advice specific to your business needs.
What we'll do if you don’t register
We'll continue to monitor drivers who don't have a TFN, ABN or GST registration and those who haven't declared all their assessable income.
If you’re a driver who, after 3 months, still chooses not to register and comply with your GST and income tax obligations, we may:
- register you for GST
- back-date your GST registration
- instruct you to back-pay all the GST on your prior rides, plus interest
- determine what income tax you need to pay on your taxable income
- apply financial penalties, which you'll also need to pay
- instruct you to complete a number of online courses.
Keep up to date
Learn more by taking our free self-paced online courses at Essentials to strengthen your small businessExternal Link.
You can also:
- subscribe to our free Small business newsletter to get updates that might impact your business
- contact your tax professional to obtain advice specific to your business needs.