Ride-sourcing

Ride-sourcing, sometimes referred to as ride-sharing, is an ongoing arrangement where:

• you (a driver) make a car available for public hire for passengers
• a passenger uses a third-party digital platform, such as a website or an app, to request a ride, for example, Uber, Shebah, or GoCatch
• you use the car to transport the passenger for payment (a fare).

Income tax applies to your ride sourcing income. Ride-sourcing is also subject to goods and services tax (GST). All ride-sourcing drivers need to have an Australian business number (ABN) and be registered for GST.

For GST you need:

• an ABN
• to register for GST from the day you start, regardless of how much you earn
• to pay GST on the full fare
• to lodge business activity statements (BAS) monthly or quarterly (you can't choose to lodge annually)
• to know how to issue a tax invoice (you need to provide one for fares over $82.50 if asked)

For income tax you need to:

• include the income you earn in your income tax return
• only claim deductions related to transporting passengers for a fare, including apportioning expenses limited to the time you are providing a ride-sourcing service
• keep records of all your expenses and income (you can use the myDeductions tool in our app).

Find out about:

• Registrations
• Reporting and paying GST
• Tax invoices
• Income and deductions for ride-sourcing
• Record keeping

Use our checklist to help you get it right

If you speak a language other than English, you can read our guide, Ride-sourcing – the basics, in the following languages:

• Arabic
• Chinese
• Dari
• Hindi
• Korean
• Punjabi
• Vietnamese

Watch:

Being a ride-sourcing driver (sometimes referred to as ride-sharing) means you have tax obligations.