Uber has recently lost an 18 month battle with the ATO where the Federal Court ruled that Uber ARE a taxi service.
What this means is that Uber drivers, whether they are full time or only casual, will have to pay 10% GST to the ATO on top of the 25% commission to Uber.
Uber’s argument was that they offered a ride sharing service rather than “taxi travel” which would mean that if they earnt under $75,000 they wouldn’t be liable for GST, whereas taxis need to pay GST on any amount earned.
Justice John Griffith of the Federal Court stated that the definition of “taxi travel” should be ‘construed broadly and not technically’ ruling in favour of the ATO.
