All Sharing Economy posts

Re: Is GST applicable on an Airbnb Apartment

ChrisR — Mon, 24 Feb 2020 07:18:28 GMT

Thanks for your post.

Your thinking sounds right. The owners need to declare the rental income. As the individuals are the owners of the rental property, they are the ones who need to declare the income.

As the owners aren't GST registered, they're not required to collect GST and pay it to us. If their company has incorrectly paid GST to us in respect of this rental income, the company can correct it.

For more information about GST and correcting your mistakes, refer to our website.

Generally, you only declare the income you earn from a property if your name is on the title deed. Check out the obtaining and owning a rental property page for more information. The name in the Airbnb agreement doesn't override the title deed.

Hope this helps.

Thanks,

ChrisR

Re: Reporting Airbnb Income as a business

AriH — Mon, 24 Feb 2020 01:46:01 GMT

You can include the rental income from Airbnb with your other gross income. Your business industry code indicates your main source of income so it is still appropriate for your current circumstances.

If you are concerned that your lodgment is late you may want to contact us.

Hope this helps.

Ari

Reporting Airbnb Income as a business

traceymt — Fri, 21 Feb 2020 10:03:58 GMT

Hi, we have a business renovating residential properties to sell. We are running the business under a partnership. Our first project stayed on the market too long after completion, so we took off the market intending to 'refresh' the listing in 3 months. We listed through Airbnb (under my name only) during this time so that we could recoup some of the holding costs, but also retain full control over the property to show potential buyers through etc... Anyway, we earned Airbnb income for approx 3 months until we fortunately sold the property. Settlement of the sale was in the following financial year, therefore this will be the only income to report for the partnership for 2019.

My question is, even though we are in the business of property investment (we are using industry code 30110 House renovations), the intention of this business is to sell the properties, not rent them out. Therefore, is the airbnb income considered as 'Other business income' or 'Rent' on our partnership tax return?

Any advice would be greatly appreciated (currently completing our 2019 partnership tax return... so running a little late on lodgement!)

Re: Business vehicle depreciation (Uber driver)

ChrisR — Thu, 20 Feb 2020 01:12:27 GMT

Thanks for your post. This is proving to be a popular thread!

has provided some great information in this thread and you will find the answers to your questions in their posts.

You cannot claim an instant asset write off for your car if you had owned it as a private-use car before starting your ride-sourcing activities. To calculate depreciation, you can generally use either the prime cost method or the diminishing value method.

You can check out the income and deductions for ride-sourcing as well as the depreciation and capital expenses and allowances pages on our website for more information.

Hope this helps.

Thanks,

ChrisR

Re: Is GST applicable on an Airbnb Apartment

DuncanS — Wed, 19 Feb 2020 23:57:01 GMT

Kylie and macfanboy,

A client has approached me to determine whether GST should be payable on AirBNB.

The ATO reference provided by macfanboy states "don't need to pay GST on amounts of residential rent you earn".

ATO reference (QC 53225) also gives examples in determining if the situation is residential rent or commercial residential premises. GST is payable on commercial residential premises.

The facts include -

Farm in Northern NSW with residential house and accommodation with separate entry.

Living quarters are provided in the accommodation with basic breakfast materials.

Owner has paid GST through the company business as they did have a Bed and Breakfast owned by the company in a different location previously.

AirBNB income is less than $10,000 a year.

The farm is owned by the individuals who are not registered for GST.

They are asking if GST paid to the ATO by the Company can be claimed back.

They are unsure whether information provided by AirBNB to customers mentions GST or not.

They are also unsure whether the agreement with AirBNB is with the company or the individuals.

My thoughts -

Ownership of the property would determine that the Income is declared by the individuals.

No GST would be payable as owners are not GST registered (ie does not matter if premises are commercial residential.

GST paid by the Company may be returnable.

Could the name in the agreement with AirBNB override the ownership test for determining if GST is charged?

Thanks

Duncan

Re: Business vehicle depreciation (Uber driver)

awn — Thu, 13 Feb 2020 23:22:40 GMT

Hi Jodie
I bought a car on finance in January 2017 and started driving for uber in August 2019. I understand that i need to calculate the book value of my car for tax purposes on the day when i started to drive for uber. My question is if the tax written value of my car on the day when i started to drive for uber comes out to be less than $30,000, can i claim the whole written down value straight away or do i need to depreciate it 25% diminishing value method? Please help.

Re: GST and GST credits on Uber income

RachaelB — Wed, 12 Feb 2020 05:18:46 GMT

Hi again ,

Thanks for getting back to me!

It's a bit of a tricky situation, as it all really depends on the way Uber charges their fees. If you have a look at the "Fares" section in the guide I've linked above, you'll see the following information:

"GST must be calculated on the full fare, not the net amount you receive after deducting any fees or commission. For example, if a passenger pays $55 for a fare:

the GST payable is $5 (1/11th of the fare)
the digital platform takes out their fees or commission, for example $11, and pays you $44
if the digital platform fee of $11 includes GST, you may be entitled to claim a GST credit of $1 (1/11th of the fee).

Some digital platforms include GST on the commission they charge. If they do, you may be entitled to claim a GST credit.

You will need to look at how each digital platform charges fares to determine the correct way to calculate your GST."

Using the above example, for the scenario you've posted the fare of $15.97 would have GST payable of $1.45.

If Uber then deducts their fee of $3.56 from the fare of $15.97, this does not change the amount of GST payable on the fare.

Since the $3.56 includes GST, you may be able to claim a credit for this component on your BAS. ($0.32) With respect to the Rider Fees deduction, you'd need to find out if it includes GST or not before including it in the totals for your purchases on your BAS.

I hope this makes sense, but please let me know if you need more information.

Thanks,

Rachael B.

Re: Is AirBnB rental income or business income ?

ChrisR — Wed, 12 Feb 2020 04:55:29 GMT

Thanks for your question.

We don't require you to get an ABN if you are renting out a room or a property through a digital platform such as Airbnb. It is rare for someone to be carrying on a business because they are renting out a residential property.

You can check out the sharing economy and tax and renting out all or part of your home pages on our website for more information.

GST doesn't apply to residential rent. You're not liable for GST on the rent you charge, and you can't claim any GST credits for associated expenses.

You can find out more about how GST applies to residential rent and situations where GST is payable on our website.

Hope this helps.

Thanks,

ChrisR

Re: GST and GST credits on Uber income

AG23 — Sat, 08 Feb 2020 21:39:30 GMT

Thank you kindly for your response and I think I'm beginning to understand how GST works for ride sharing income.

However I am somewhat confused about the inclusion of the 'Uber Fee' in the GST due calculation as my understanding is that it's a driver deduction and not an additional charge to the rider (as it's inclusive of the Gross Fare + Wait Time for which GST is also being paid).

Perhaps if I break it down a little differently and see if we still get the same calculation?

Using my original example, the following is what is charged to the rider:

Gross Fare - $12.82
Wait Time - $0.12

Tip - $1.00
Booking Fee Charged To Rider - $0.55
NSW CTP Charge - $0.38
NSW Government Transport Levy - $1.10

Total charged to rider = $15.97

And the following are the deductions from Uber:

Uber Fee inc GST - -$3.56
Booking Fee Charged By Uber - -$0.55
Rider Fees Deduction - -$1.48

Total deductions = -$5.59

Does this change your original calculation or am I still including the 'Uber Fee inc GST' and the 'Booking Fee Charged By Uber' in my calculation for GST to be paid?

I hope I haven't confused the matter more...

Thanks again

AG23

Re: Is AirBnB rental income or business income ?

Trill — Fri, 07 Feb 2020 05:50:36 GMT

If AirBnb is rental income then why do you need an ABN? Should that not classify the enterprise as a business regardless of the type of property. Once they have a turnover of $75k plus then they have to be GST registered. I know of some beachfront residential properties that $75k is easily done.

Re: Business vehicle depreciation (Uber driver)

NateH — Mon, 03 Feb 2020 00:47:38 GMT

Hi ,

If you are calculating the depreciation on a car that was bought before you commenced ride-sourcing, then the purchase price used for your calculation will be GST-inclusive. This is because you are unable to claim the GST credit for the purchase of the car.

Thanks, NateH

Re: Business vehicle depreciation (Uber driver)

NateH — Fri, 31 Jan 2020 04:11:24 GMT

Hi ,

We are going to look into this and get back to you with an answer.

Thanks, NateH

Re: GST Uber eats

macfanboy — Sat, 25 Jan 2020 02:48:43 GMT

You can't claim GST credits if they are not registered for GST.

I would be notifying the ATO of this.

GST Uber eats

JamieWalton1979 — Sat, 25 Jan 2020 00:52:49 GMT

Hi,

I am a fast food retailer using the uber eats platform. At first i couldnt get my head around the whole gst marketplace adjustments that ubereats paid me but i reckon i am full bottle on it now.

I have noticed some of the couriers are charging gst but when you do an abn lookup it says there abn is not registered for GST. I initially sent this information to uber eats to investigate but they did not do anything citing privacy reasons.

Am i still able to claim the GST credits?

Re: Business vehicle depreciation (Uber driver)

1cent — Fri, 24 Jan 2020 05:38:48 GMT

It was worth reading this thread. I have a query, can you also claim GST portion here on depn amount.

If car was bought before driving Uber so no gst was claimed at the time of purchase .

Regards
1Cent

Re: GST and GST credits on Uber income

RachaelB — Thu, 23 Jan 2020 00:56:01 GMT

Hi ,

Thanks for your question!

You've done some great work with your calculations here, but I'd like to provide you with a little more information. GST is calculated on the full fare that is charged to and paid by your passenger, which includes any fees or commissions that Uber takes out.

Let’s imagine that your passenger’s fare is calculated as follows:

• Gross Fare +$12.82
• Wait Time +$0.12
• Uber Fee inc GST +$3.56
• Tip +$1.00
• Booking Fee Charged To Rider +$0.55
• Booking Fee Charged By Uber +$0.55
• NSW CTP Charge +$0.38
• NSW Government Transport Levy +$1.10
• Rider Fees Deduction -$1.48

Total passenger fare charged and paid = $18.60

In this example, you would calculate GST as 1/11th of $18.60, which is approx. $1.69.

For GST on purchases using the above example, you would be including the fees charged by Uber, the NSW CTP charge and potentially the Government Transport levy. This is because the Levy is a charge passed on by Uber to its riders.

This would be $3.56 + $0.55 + $0.55 + $0.38 + $1.10 = $6.14. The GST component would be approx. $0.56.

If you would like to learn more about your tax obligations as a ride sharing operator, you can see our guide here, and you can use our GST for BAS calculation worksheet to help you work out your sums.

I hope this is helpful, but please let me know if you have any other questions.

Thanks,

Rachael B.

Re: GST and GST credits on Uber income

KylieS — Wed, 22 Jan 2020 20:17:36 GMT

Hi ,

We will check this one out and get back to you.

KylieS

GST and GST credits on Uber income

AG23 — Sat, 18 Jan 2020 03:43:47 GMT

I've recently started as an Uber driver in Regional NSW and will attempt to lodge my own BAS. My questions are regarding GST and GST credits.

The statement that I have downloaded from the Uber Driver website provides a breakdown of the calculated income I receive in my bank account.

I will use the below fare calculation as an example for the purposes of my questions

Gross Fare - $12.82
Wait Time - $0.12
Uber Fee inc GST - ($3.56)
Tip - $1.00
Booking Fee Charged To Rider - $0.55
Booking Fee Charged By Uber - ($0.55)
NSW CTP Charge - $0.38
NSW Government Transport Levy - $1.10
Rider Fees Deduction - ($1.48)
Total income paid to my bank account - $10.38

My understanding is the GST I must pay is 1/11 of the total of: Gross Fare + Wait Time + Tip + Booking Fee + NSW CTP Charge + NSW Govt Transport Levy. In the example above, the due GST would be: ($12.82 + $0.12 + $1.00 + $0.55 + $0.38 + $1.10) = $15.97 / 11 = $1.45.

Is this correct?

With regards to claiming a GST credit, am I correct in assuming that the GST portion of the Uber Fee, Booking Fee and NSW govt charges (Rider Fees Deduction) can be claimed as a GST credit, i.e. in the example above, it would be: $3.56 + $0.55 + $1.48 = $5.59 / 11 = $0.51 ?

In addition to the above, would the income I report in my BAS on the above transaction be the sum of the Gross Fare + Wait Time + Tip + Booking Fee + NSW CTP Charge + NSW Govt Transport Levy? And similarly, would I claim the Uber Fee, Booking Fee and NSW govt charges (Rider Fees Deduction) as an expense?

Thanks in advance

AG23

Re: AirBnb as part of commercail property - charge GST?

SusieC — Fri, 17 Jan 2020 09:33:17 GMT

Thank you for the link

Thank you - I think that is a good idea. No- one seems to be talking about exactly the scenario that I have here.

Re: AirBnb as part of commercail property - charge GST?

DuncanS — Fri, 17 Jan 2020 07:59:08 GMT

Susie,

I would contact the ATO to discuss your circumstances.

Duncan

Re: AirBnb as part of commercail property - charge GST?

KylieS — Fri, 17 Jan 2020 02:04:59 GMT

Hi ,

has answered this one in the past, check it out.

KylieS

Re: myGovID & RAM - multiple Auskeys

KylieS — Fri, 17 Jan 2020 01:53:29 GMT

Hi ,

Check out the information on Relationship Authorisation Manger (RAM) that should assist you.

KylieS

myGovID & RAM - multiple Auskeys

ChrisG — Wed, 15 Jan 2020 07:16:49 GMT

I work for a business that has three separate entities and I use individual Auskeys to submit BAS returns and Superannuation via the Government Small Business Superannuation facility. Will I be able to link three ABNs to my boss's myGovID once we set it up?

Thanks

Christine

AirBnb as part of commercail property - charge GST?

SusieC — Tue, 14 Jan 2020 10:47:41 GMT

I have rented a commercial property and have a shop downstairs and AirBnb upstairs? I am registered for GST. Do I charge GST on the rent for the AirBnb?

Re: Online registration for GST

DuncanS — Wed, 18 Dec 2019 03:59:48 GMT

The reference given by Kylie says you can ring the ATO on 13 28 66.

Does this mean the ATO can register an entity for GST over the phone?

It may well be best to speak with someone and explain the circumstances/ask some questions rather than complete an Online Form.

Duncan

Re: Online registration for GST

webstermedia — Wed, 18 Dec 2019 03:16:17 GMT

Thnaks Kylie S - I went there and it says "you can register for GST via the Business Portal".

To access the Business Portal it says "to login to the Business Portal you can myGovID and Relationship Authorisation Manager".

So I click that link and that goes to a guide on accessing online services with myGovID and
RAM! There's no reference to registration for GST - but there is a link to Business Portal, so I click that and it asks for myGovID.

I log in and land in the Business Portal - but can't find any link to register for GST.

Very frustrating!

Is there a link anywhere that I can click on to register for GST online?

Re: Online registration for GST

KylieS — Wed, 18 Dec 2019 02:01:12 GMT

Hi ,

Check out the page on How to register.

Thanks

KylieS

Online registration for GST

webstermedia — Wed, 18 Dec 2019 01:29:36 GMT

I have a TFN an ABN and and MyGOVid - I want to register online for GST (so I can Uber drive), but can't find out where! 'Ask Alex' refers to the Business Portal - but I can't find any links there. Help!

Re: I deliver for UberEats only (not-ride sharing)... how/what to declare?

macfanboy — Wed, 11 Dec 2019 21:00:30 GMT

The $75,000 refers to business income only, so only from the Uber eats.

Re: I deliver for UberEats only (not-ride sharing)... how/what to declare?

tahseen — Wed, 11 Dec 2019 10:52:42 GMT

I read the following paragraph on internet, I am not clear about one thing. this 75000 $ limit is applicable for earning through Uber eats only ? or does it applicabe on sum of my all incomes? as I am doing a full time job and already earning more then 75000 $ annually.

My plan it work for Uber eats only (on weekends and public holidays). so I will hardly make around 5000$ annually from uber eats.

So In my particular case, Do I need to be register for GST or not ?

"as an UberEATS driver, you are obligated to declare any income you have received while working as a driver. However, you do not need to register for GST if you are earning less than $75,000 and are only delivering food but if you are making more than $75,000 annually, you need to register for GST"

https://www.mytaxrefundtoday.com.au/a-tax-guide-for-uber-eats-drivers/

Re: Uber Eats, Uber - Restaurant invoicing

KylieS — Tue, 10 Dec 2019 22:29:52 GMT

Hi ,

That is great, we were going to suggest that you contact them for information on the breakdown.

Thanks for letting us know.

Thanks

KylieS

Re: Uber Eats, Uber - Restaurant invoicing

torcb11 — Mon, 09 Dec 2019 03:41:16 GMT

Hi, Uber Eats got back to me and released their payment structure. It looks like the discount applied is just the delivery charge they take to pay the driver when the delivery charge is higher than the delivery fee.

Re: Uber Eats, Uber - Restaurant invoicing

KylieS — Mon, 09 Dec 2019 02:34:52 GMT

Hi torcb11,

Thanks for your question, we will look into it and get back to you as soon as we can.

Thanks

KylieS

Uber Eats, Uber - Restaurant invoicing

torcb11 — Fri, 29 Nov 2019 05:49:36 GMT

Hi Ato,

I'm a cafe manager, and my query is in regards to ubereats's service fee and how they invoice our business. Each week they calculate the service fee payement of 35% of gross sales (Meal Price) on their platform, they deduct this, including Gst from our gross sales, then we are paid a net total each week. Yet on the ubereats's invoices to our business, it shows that the 35% service fee is being discounted, and the net total they charged our company for all intents and purposes is a lot less that the 35% service we pay them weekly. And would like to know if this is allowed;

For example in our payment summary:

A week in october we grossed $1,479.10 in sales, we were charged $517.82 in uber eats service fee, plus Gst on service fee and paid a net of $966.11. Yet on Uber eats invoicing for this exact week, the $517.82 service fee is discounted by -$359.44, to a net total of $158.38. My issue here is Uber eats is charging us the $517.82 for their service, yet their invoicing suggest they only charged us $158.38, thus my questions, is this practice legal? if i provided a service, charged a customer $80, then on the invoice discounted it to $20 for tax purposes yet still made my client pay $80 is that allowed? Shouldn't uber eats be invoicing our business for the $517.82 with no discount, or only charging us the $158.38 if they applied the discount. I'd like some clarification if this is legal, if so it suggests that Uber Eats is misreporting their income systemically across every invoice? Or if this is the wrong forum(apologies if so i'm really new to this) directed somewhere my query may be more appropiate.

Regards Brandon

Re: Airbnb Income

NicolaC — Fri, 29 Nov 2019 00:59:16 GMT

Hi interesting question...

Generally speaking, if you rent out all or part of your home, the payments you receive are assessable income. This means:

you must declare the income as rental income in your tax return
you can claim deductions for associated expenses

If you're carrying on an enterprise renting out commercial residential premises you're considered to be running a business. In this case you'll have different income tax and GST obligations.

As for how hosts and property owners are managed, I'd recommend checking with Airbnb.

NicolaC

Airbnb Income

CindyW — Wed, 27 Nov 2019 00:30:05 GMT

Hi ATO,

Airbnb requires a host to set up under their individual name. However, that host can list multiple people's properties and potentially show a large income under their own account. When Airbnb reports income to ATO, does it show under the account holder's name or the actual property address and therefore property owners' name (person responsible for tax reporting)?

Thanks, Cindy.

Re: Sharing a house with flatmates

KylieS — Fri, 15 Nov 2019 05:48:49 GMT

Hi ,

No, you do not need to pay tax on the rent as it is not considered to be income.

You also wouldn't claim any tax deductions against the rent.

Thanks

KylieS

Re: PTY LTD company and ride sharing

Morphy1 — Wed, 13 Nov 2019 06:11:33 GMT

Thank you for your response KylieS. It is pretty much where I got to, but information on ATO website isn't very definitive.

Thank you again.

Re: PTY LTD company and ride sharing

KylieS — Wed, 13 Nov 2019 06:07:27 GMT

Hi ,

Thanks for your patience.

Ride sharing cannot be registered to a company. The proposed scenario could work but the use of the car would need to be apportioned between ride sharing and the current company. The income and apportioned expenses would be allocated to the ride sharing ABN.

In short you would be running two separate entities and apportioning the use of the car between the two.

Thanks

KylieS

Sharing a house with flatmates

jess11 — Wed, 13 Nov 2019 00:40:11 GMT

Hello,

I am renting a two bedroom unit and I am the only person on the lease.

I have permission to sub-let the second bedoom.

If I sub-let out the second bedroom, do I need to pay tax on rent provided? The flatmate would only be contributing 60% towards the total weekly rent, and I wouldnt be making any profit. The reason the flatmate may be paying 60% instead of 50/50 split is because I have fully furnished the house so they would be using all my furniture (and like my most flatmates in the past have done, probably wrecking my furniture/not looking after it as carefully as I would) and the second bedroom is substantially larger than my current one.

Bills such as electricity and internet would be split equally between myself and the flatmate.

Thanks

Re: GST on Tips paid by Uber for Ride Sharing

kazilliomn — Mon, 11 Nov 2019 09:35:42 GMT

Not really! The invoice gerenrated by any ridesharing company shows clearly what is the fare amount and what is the tip included, so a driver can never change a ($19 Fare + $1 Tip) to ($1 Fare + 19 Tip).

Re: Uber eats deduction

macfanboy — Wed, 06 Nov 2019 03:29:49 GMT

Motor Vehicle expenses explained here

Uber eats deduction

shinebright — Wed, 06 Nov 2019 02:55:27 GMT

Hi, i want to know what can i claim car rego expenses , depreciation and fuel expenses as i worked as a uber eats driver, and, if i can claim depreciation exp, how can i calculate it?

Re: PTY LTD company and ride sharing

Morphy1 — Wed, 06 Nov 2019 00:07:41 GMT

Hi NateH,

Any response from last question?

Re: PTY LTD company and ride sharing

Morphy1 — Mon, 04 Nov 2019 06:11:29 GMT

Hi NateH,

Thanks heaps for your response. I replied to your email on my email, but realised you probably won't get that so thought I should ask through here.

So from your response I think I can conclude that my proposal would work and be compliant because I will not be claiming any expenses nor will I be earning any income from ridesharing companies like Uber or Didi.

If the Pty Ltd company is paid by the ride share providers and also vehicle expenses, it will pay company tax (27.5%) on total business income less expenses. In the same way as the company is paid for providing consulting services to a varity of industries.

Also, as I said earlier I currently get paid a salary and that won't be changing and I pay income tax on that salary.

Am I missing sometjhing, because from my read of the answer I am ok??

Re: Ride Sharing and company structure

NateH — Mon, 04 Nov 2019 05:18:24 GMT

Hi ,

We have responded in your other thread.

Thanks, NateH

Re: PTY LTD company and ride sharing

NateH — Mon, 04 Nov 2019 05:14:33 GMT

Hi ,

We have heard back from our specialists.

As far the company is concerned, the company is entitled to deductions for car expenses incurred in providing a car to its director for use in the company’s business and for other exclusive use by the director. The company will be providing a car fringe benefit for which the company will need to calculate its FBT obligations in respect of allowing you to use the company’s car.

On the second point the ATO takes the approach that under ride sourcing arrangements it is the individual driver that derives the income from ride sourcing activities, and that neither who owns the car nor what party is registered on the platform is determinative of who earns the income from ride sourcing. A specific rule states that deductions are not allowed for employees for car expenses for employer provided vehicles that are subject to FBT for the employer. Hence, expenses like fuel or repairs would not be deductible to you even though they may be partly attributable to your ride sourcing driving. However, your ride sourcing activities and car expense payments made by you can be taken into account in calculating car fringe benefit value for your employer company under the Fringe Benefits car rules.

All ride-sharing drivers need to have an Australian business number (ABN) and be registered for GST. The standard GST registration rule for GST turnover (of $75,000 or more) does not apply when it comes to ride-sharing. Further information on ride-sharing can be found on our website.

Hope this helps, let us know if you had any further questions.

Thanks, NateH

Re: PTY LTD company and ride sharing

NateH — Mon, 04 Nov 2019 00:10:09 GMT

Thanks for letting us know, I'll pass that information on as well

Re: PTY LTD company and ride sharing

Morphy1 — Mon, 04 Nov 2019 00:08:04 GMT

Thanks NateH for letting me know.

Also, by way of clarification, there isn't any change to by salary and I won't be personally claiming any expenses. The intent that any money earn't by ride sharing is paid directly to the company and not me personally. While it is inferred in my post, it wasn't explicitly stated.

Re: PTY LTD company and ride sharing

NateH — Mon, 04 Nov 2019 00:01:33 GMT

Hi ,

Thanks for getting in touch. We're going to send this one off to a specialist area to get an answer for you and we'll get back to you soon.

Thanks, NateH

Ride Sharing and company structure

Morphy1 — Sun, 03 Nov 2019 23:04:01 GMT

Hi,

I have been consulting to various industries under my company (a PTY LTD company) for quite some time. I draw a monthly salary from my company. My company owns and maintains a company car for business purposes.

Consulting occupies most of my time with across a range of industries and clients, however to help during quieter periods between clients my plan was for the company to make better use of the car and set-up ridesharing under the companies name (with me as it's Director and the driver).

My salary would not change and I would not be claiming any personal expenses because my company would carry these expenses. The whole idea is a better use of the car and my time. However I was recently informed that the ATO would not allow my company to claim any of the vehicle related expenses before calculating the company tax liability at the end of the financial year and I must also set-up as a sole trader to do any ride-sharing.

I am very confused by this advice. I can't see anywhere, including in the law (I'm a regulatory specialist) and on the ATO website why my proposal would not be allowed.

Can someone please explain the reason for this information coming out of the ATO?

PTY LTD company and ride sharing

Morphy1 — Fri, 01 Nov 2019 23:37:25 GMT

Hi,

I am very confused by this advice. I can't see anywhere, including in the law (I'm a regulatory specialist) and on the ATO website why my proposal would not be allowed.

Can someone please explain the reason for this information coming out of the ATO?

Re: GST for Ride-Share service provider

Leo1995 — Fri, 25 Oct 2019 12:53:35 GMT

Thank you for the update.

Re: GST for Ride-Share service provider

JodieH — Fri, 25 Oct 2019 00:53:42 GMT

Hi ,

Thanks for your patience whilst we checked information with a specialist area.

is correct. Referral fees represent a payment by the ride-sourcing platform for a supply of marketing by the driver. Therefore, assuming the platform is registered for GST, the driver will have a GST liability for the amount of the fee received.

A driver is entitled to claim GST credits for any GST included in the price of expenses incurred that directly relate to their ride-sourcing enterprise.

Thanks, JodieH.

Re: GST for Ride-Share service provider

JodieH — Wed, 23 Oct 2019 06:57:04 GMT

Hi @Loe1995,

Thanks for getting in touch!

We're checking information about your query with a specialist area and we'll get back to you as soon as possible.

Thanks, JodieH.

Re: UBER EATS

NateH — Wed, 23 Oct 2019 05:39:30 GMT

Hi ,

is correct.

You may also want to have a look at our article about delivering food and what you need to do for tax.

Thanks, NateH

Re: UBER EATS

macfanboy — Wed, 23 Oct 2019 03:51:19 GMT

There is no difference.

It is business income and you are self-employed.

UBER EATS

Nimmi — Wed, 23 Oct 2019 03:45:38 GMT

Is UBER eats classified as a business or a self employment

Re: GST for Ride-Share service provider

Leo1995 — Mon, 21 Oct 2019 06:32:04 GMT

Good to know. Thank you for your reply.

Re: GST for Ride-Share service provider

macfanboy — Mon, 21 Oct 2019 06:17:55 GMT

Petroleum Gasolene is otherwise known as Petrol in Australia/UK.

In the US they refer to it as Gas.

Gas over here is what we heat things up with.

The extra KIlometers that is travelled would be added to the business Kilometers in your logbook.

Re: GST for Ride-Share service provider

Leo1995 — Mon, 21 Oct 2019 06:00:50 GMT

Hi! Thank you for your reply.

So payment related to referring new customers is also GST payable even though there is no GST charged from customers? (I thought the reason why drivers need to pay GST is that they have collected GST from customers on behalf of the ATO so that they need to pay this amount, but in the above case, no GST has been charged from customers)

By saying gas I mean the gasoline used when driving around to send promotional materials such as the referring code.

Re: GST for Ride-Share service provider

macfanboy — Mon, 21 Oct 2019 06:22:58 GMT

If the bonus payment is for a supply by the driver (e.g. for referring new drivers) to an Australian based platform, then the amount received will be a consideration for that supply and GST will be payable.

Any expenses can be claimed; printing, parking fees (not fines) and what do you mean by gas?

GST for Ride-Share service provider

Leo1995 — Mon, 21 Oct 2019 04:09:57 GMT

Hi. My friend is currently doing ride-share service as a part-time job. Recently, the ride-share company launched a campaign. This campaign encourages drivers to attract new customers and for each new customer registered (and subsequently used the service), he would get a small amount of money/bonus as referral fees. My question is does my friend need to pay GST for this amount? And if yes, can he claim any GST deductions for expenses occurred, such as printing promotional materials, related parking fees and gas?

Thank you for your help.

Re: GST on AriBNB

JodieH — Mon, 21 Oct 2019 00:08:03 GMT

Hi ,

Welcome to our Community!

We can provide general information here on our Community about tax and super topics, however your query is more complex and we'd need to know more information to be able to provide a definite answer.

It's recommend you write to GSTmail@ato.gov.au and provide detailed information about your situation to receive a more tailored response.

Thanks, JodieH.

Re: Cents per KM method

MJUber — Sun, 20 Oct 2019 05:01:59 GMT

Thanks Jodie

Re: GST on AriBNB

JakeE — Wed, 16 Oct 2019 04:55:55 GMT

Can't offer any assitance with the GST question, but I would like to offer a caution about the arragment "My SMSF owns a commercial property, which is leased to my company for the running of my business." My advice if you have not already done this is to seek taxation advice on this, as it appears to be a non-arm's length arrangment. https://www.ato.gov.au/Super/Self-managed-super-funds/Investing/Tax-on-income/Non-arm-s-length-income/

GST on AriBNB

Chairman_Mal — Wed, 16 Oct 2019 04:29:14 GMT

My SMSF owns a commercial property, which is leased to my company for the running of my business. The SMSF has developed a small area of this property, for my business to rent as an AirBNB property. While the SMSF is registered for GST and collects GST on the rent from my business, please explain the GST implications for adding a residential property into the mix.

I assume my company should not charge GST on the residential rent charged to AirBNB. Does the SMSF continue to charge GST on 100% of the rent received from my company, or is part of this transaction input taxed? Is there anything else I should be aware of?

Re: Sole Trader moving back home

RachaelB — Wed, 02 Oct 2019 02:54:05 GMT

Hi ,

Thanks for your question!

Firstly, you should only keep your ABN if you are still entitled to it when you are overseas. If you are only operating a business overseas with no connection to Australia, then it is likely that you will need to cancel the ABN.

The next thing you will need to look at is your residency status.

If you remain an Australian resident while you are overseas, then you must lodge an Australian tax return and declare all of your foreign employment income, even if it was taxed in the country that you received it in. This will be reported along with your Australian business income.

If you become a foreign resident for tax purposes when you leave, but continue to earn Australian sourced income, then you will only need to report that income on your Australian tax return.

You should have a look at our guide on your tax obligations when leaving Australia for additional information.

You would need to speak to the tax authorities in Kenya in order to work out your obligations there, as they may require you to lodge tax returns even if you are still lodging returns in Australia.

Hope this helps,

Rachael B.

Sole Trader moving back home

Newbie1 — Sat, 28 Sep 2019 03:23:22 GMT

Hi,

I am currently operating as a sole trader in Australia. I will be returning back home in December. I would like to keep operating my business in my home country. Hence, I will be still maintaining my ABN. I am not sure where I should declare my earnings once I have moved back to Kenya. Should I be declaring income earned in Australia under that ABN in Australia and the rest of it that is earned in Kenya, declared in Kenya or should I declare all of it in Australia? Thank you.

Re: Airbnb

macfanboy — Fri, 20 Sep 2019 01:58:51 GMT

Whoever is on the title, is the person that declares the income/deductions.

Airbnb

Jobina — Fri, 20 Sep 2019 01:49:33 GMT

My defacto partner owns the house I rented out on Airbnb. All payments from Airbnb were made into my account and I liased with guests. As this is considered 'rental income' - should it be considered in his taxable income (as he owns the house) or mine?

Re: Ride-sourcing - UBER

RachaelB — Tue, 27 Aug 2019 02:37:22 GMT

Hi ,

Thanks for your question!

The ATO cannot determine what kind of business structure you should operate as. Generally speaking, Uber drivers will be sole traders because this is the most convenient way for them to operate their business.

If you wish to operate your Uber business under a different business structure, then that's your choice. Operating a business partnership will have different tax implications than operating a business as a sole trader, but we don't have any restrictions around what kind of business activity each different business structure is allowed to perform.

Hope this helps,

Rachael B.

Re: Cents per KM method

JodieH — Tue, 27 Aug 2019 02:36:10 GMT

Hi ,

Thanks for your patience whilst we received further information from a specialist area regarding your query.

There is no new tax determination which has replaced TD 93/177. However, the information provided is correct as

the restriction on the amount you can claim is based on the distance travelled by you in the car during the year, and not the activity or activities. Therefore, you cannot claim more than an amount attributable to 5000km travel for your car under the rate per kilometre car expense deduction method even if your car travel during the year is 6600 km.

If you and your wife own the car jointly, under the rate per kilometre method for use of the car, then yes you have a maximum limit of 5000km (each) that you can claim for the distance you travelled in the car and your wife has a maximum limit of 5000km claim for her distance travelled in the car.

If you'd like to receive a ruling for your personal situation, you can apply for a private ruling.

Thanks, JodieH.

Re: Cents per KM method

JodieH — Mon, 26 Aug 2019 00:35:13 GMT

Hi ,

is correct - we're just checking in with a specialist area to see if there is a more recent Tax determination which covers the situation.

We'll let you know when we hear back from our specialist area.

Thanks, JodieH.

Ride-sourcing - UBER

J2019 — Sun, 25 Aug 2019 21:31:20 GMT

Hi there, my question is about UBER under partnership.

We have a family partnership (wife-husband) registered for GST and ABN. I've started UBER. Do I have to apply for GST and ABN as a Sole Trader or can I do my uber under my family partenrship? Everywhere I just find " typically operating under a Sole Trader business structure", but I can't find "must" operate as Sole Trader. Thanks

Re: Paying tax as Uber Eats Driver

JodieH — Thu, 22 Aug 2019 07:15:45 GMT

Hi ,

Thanks for getting in touch!

If you're wanting to know what deductions you can claim as an Uber driver, you can check out deductions for ride-sourcing on our website for more information.

Thanks, JodieH.

Re: Business vehicle depreciation (Uber driver)

JodieH — Thu, 22 Aug 2019 04:14:18 GMT

Hi ,

Thanks for getting in touch!

If you're registered for GST and have purchased a work vehicle, you can claim the GST you paid on your BAS at 1B.

Let us know if you have further questions.

Thanks, JodieH.

Re: Where to show ride share (Uber) income

RachaelB — Wed, 21 Aug 2019 02:42:14 GMT

Hi ,

Thanks for your question!

Generally speaking, ride-sourcing income is not considered to be Personal Services Income. Your income and expenses must be reported under the "Business/sole trader" income section. You cannot report business deductions at the "other deductions" section, as this relates to deductions from salary and wages.

The business income and expenses categories are specifically named - anything that doesn't fit within those particular categories should be reported at "other - manually calculated".

Please see our guide on income and deductions for ride-sourcing and our guide for completing your business details in myTax for additional information.

If you find yourself stuck, remember that you can access our Live Chat function from within myTax.

Hope this helps,

Rachael B.

Re: Cents per KM method

macfanboy — Tue, 20 Aug 2019 22:05:41 GMT

I am sure that there is, but like most things the ATO like to keep things vague..

http://classic.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s28.25.html

Re: Paying tax as Uber Eats Driver

Danish — Tue, 20 Aug 2019 04:55:46 GMT

Hello,

While doing deliveries, i travelled 1039 kms as per the statements i have received. How much claim should i make for this kms in terms of fuel cost?

Other claim would be uber fees i guess that they charge for each delivery?

Mobile network expense?

Regards,

Danish

Where to show ride share (Uber) income

MJUber — Tue, 20 Aug 2019 03:23:00 GMT

Hi,

Just wondering whether I have to show ride share (Uber) income under PSI (P8) and deductions relating to ride share (Uber) under deductions (Other deductions)

Whether I have to show the “Net Income or Loss” from ride share (Uber) as a single line number under PSI(P8)?

Appreciate if someone could clarify the above. If the above mentioned is not the correct way of showing the rideshare income please let me know the correct way to bring the ride share (Uber) income / loss to my Income Tax return.

I have considered Income and expenses net of GST for the Income tax return.

Re: Franking Credits Auto Pilot

NelsonS — Tue, 20 Aug 2019 01:09:32 GMT

Hi ,

According to the Franking credits refund page provided in the previous response, participants for the 2018-19 financial year have already been selected and were notified in mid-June 2019.

If you were not contacted, it is likely you were not selected again for the pilot.

We hope this helps!

Thanks,

Re: Where to input income and expense for Uber driver

RachaelB — Tue, 20 Aug 2019 01:04:58 GMT

Hi ,

Thanks for getting in touch!

From what you've described, this appears to be correct.

There is a guide for completing the business section in myTax here, and a guide on ride-sourcing and tax here, should you ever need them.

Please let me know if you have any other queries.

Thanks,

Rachael B.

Re: Commercial Rate

MarkA — Mon, 19 Aug 2019 07:55:40 GMT

Thanks for your first post.

Currently an overdue debt with the ATO may have General Interest of 8.96% applied to it if that was what you were meaning. Otherwise I am not really sure what you are asking as any interest rate between a director and his business would be a commercial decision not related to the ATO. Any different to that by all mean clarify with another post.

A big welcome to our community too.

Kind Regards
MarkA

Re: Cents per KM method

MJUber — Mon, 19 Aug 2019 07:19:23 GMT

Thanks. I understnd that TD 93/177 is withdrawn sometimes back. Is there any new Tax ruling on this?

Re: Cents per KM method

macfanboy — Mon, 19 Aug 2019 04:50:21 GMT

Yes, it is per car and per owner.

According to TD 93/177, it is the distance travelled by the taxpayer’s car, not the taxpayer that is relevant in calculating the kilometres.

Cents per KM method

MJUber — Mon, 19 Aug 2019 04:41:08 GMT

Just wondering whether 5,000km limit is "per car" or for each income producing business activity. e.g. I have a full time job and I need to travel to Canberra for business purpose and also I work as a part time ridesharing (Uber) driver. Can I claim 4,100km under my work related car expenses and another 2,500 km under ridesharing?

I need a clarification whether it is for each business activity (say I run 3 businesses using the car) or irrespective of number of busineses and work related, I could claim maximum 5,000km per car.

The following from ATO website. Does that mean my wife and I both can claim 5,000km per car doing our own businesses using a single car and not 5,000km for each separate business activities?

Where you and another joint owner use the car for separate income-producing purposes, you can each claim up to a maximum of 5,000 business kilometres.

https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/vehicle-and-travel-expenses/car-expenses/

Re: UBER Eats by bike

NateH — Thu, 15 Aug 2019 02:34:19 GMT

Hi ,

Welcome to our Community!

In addition to the video has linked we also have guide for delivering food for Uber Eats and other similar companies that you might find helpful.

Thanks,

Where to input income and expense for Uber driver

fauhau9385 — Thu, 15 Aug 2019 01:34:04 GMT

Hi, as an Uber driver I enter the related income and expense in the following boxes of my tax return, may I know is it correct? thanks.

> Business/sole trader, partnership and trust income

> Business income or losses
> Net non-primary production
> Other business income – manually calculated - enter the income for Uber driving
> All other expenses – manually calculated - enter the expense for Uber driving

> Net non-primary production
> Remaining net non-primary production income or loss from business - enter the net income

Re: Franking Credits Auto Pilot

TerryB — Wed, 14 Aug 2019 10:25:46 GMT

Thanks for the reply. However what I was asking was if you were in the pilot for automatic refund of Franking Credits last year will you be in the pilot for the 2018/2019 year. If not we will need to complete an application. Thanks

Re: GST Registration for Private Transport Service

Biggiesmalls — Wed, 14 Aug 2019 05:32:35 GMT

Anyone with an ABN can register voluntarily for GST. I don't know if you're required to or not. If you are considered a taxi or limousine service for tax purposes than you are required to be registered for GST like ride share drivers (uber etc)
https://www.ato.gov.au/law/view/document?docid=AID/AID200223/00001

Re: UBER Eats by bike

Biggiesmalls — Wed, 14 Aug 2019 04:11:36 GMT

Good on you for doing it yourself! Theres a video you can watch here
http://tv.ato.gov.au/ato-tv/media?v=bd1bdiubosijw7

UBER Eats by bike

jsilva — Wed, 14 Aug 2019 00:26:09 GMT

Hi All,

I am lodging my first tax return and I have a question about uber eats, I did uber eats by bike and I am not sure how to lodge this income on my tax return, do you have any tutorial or video where I can find how to fill this information.

Thanks.

Re: Paying tax as Uber Eats Driver

KylieS — Tue, 13 Aug 2019 06:56:22 GMT

Hi ,

Thanks for your question.

Check out our knowledge base article Delivering food or goods using a digital platform or app?

Thanks

KylieS

Re: Franking Credits Auto Pilot

KylieS — Tue, 13 Aug 2019 01:29:36 GMT

Hi ,

Thanks for your query.

The Franking credits refund pilot is continuing for the 2018-19 year.

Check out the information on the Franking credits refund page.

Thanks

KylieS

Commercial Rate

elena75 — Tue, 13 Aug 2019 00:02:53 GMT

Hi, where can I find the commercial interest rate to use when calculating the loan interest repayment from a Business to his director?

Re: Business vehicle depreciation (Uber driver)

WArevalo2019 — Tue, 20 Aug 2019 05:56:23 GMT

Hello ,

G'day. Just want to ask some clarification based on the situation you've provided below..

I have similar issue the only difference is the brand new car i bought cost $31,000 (inc GST)

Can I still claim the GST on purchase (1B) and input this on my BAS, for this kind of situation?

thanks for any advice.

Bought car 1/12/2017 for $15,000

Started to work for Uber 1/4/2018.

So there are 121 days from 1/12/17 to 1/4/2018

Cars depreciate at 25% at diminishing value

(assuming it is not a ute/panal van or vehicle carrying 9 or more passengers or have a load carrying capicity of more than 1 tonne).

So $15,000 x 121 days /365 days x 25% = $1243 reduction so

$15,000 - $1243 = $13,757 = Opening Adjustable value of your car at 1/4/2018.

This is what you depreciate it at and then claim Business use % (obtained from keeping a log book for 12 weeks).

Re: Declaring rent received from housemate (sub-tenant)

wonka5 — Sun, 11 Aug 2019 07:35:26 GMT

That would depend on if you are renting out the second bedroom for profit or just to share expenses. If you are doing it to just to share expenses you do not need to declare the income.

Declaring rent received from housemate (sub-tenant)

Alice1851 — Sun, 11 Aug 2019 06:56:44 GMT

Hi,
I’m currently renting a two bedroom unit. I have written approval from the landlord to sublet the second bedroom. I have sublet this room to a housemate. Do I need to declare my housemate’s rent, paid to me, as part of my income tax return? Given that I do not own the property?
I could only find references to landlords who own the property, not landlords like myself who are renting it and then subletting one bedroom.
Thank you

GST Registration for Private Transport Service

JakeA — Sun, 11 Aug 2019 02:32:24 GMT

Hi,

I was wondering if I could gain some clarification regarding GST responsibilities for my situation:

I have registered for an ABN to provide private transport services (similar to taxis and Ubers) to a select few people; and I am not using Uber or any other similar platform, instead gaining business privately through word-of-mouth . In this case, would I still be liable to register and pay GST? All the info on the ATO website is directed towards people utilising ride-sharing platforms to gain business, not privately like I plan to.

Any and all advice would be greatly appreciated.

Thanks!