ABN/GST for UberEats and Food Delivery Drivers

This is the biggest question amongst all UberEats and Food Delivery Drivers, do I need an ABN and do I need to be registered for GST? Rideshare Tax can help clear the confusion. 

It all depends on which category you fall into…

Category A – You ONLY deliver for UberEats or other food delivery company. 

If you fall under this category then the following applies to:

    1. You need an ABN.
    2. You do not need to register for GST if your total income is under $75,000. (Total income includes any other income you’ve earned from other small businesses on your ABN).

Category B – You deliver food AND drive passengers for UberX (rideshare).

If you fall under this category then the following applies to:

    1. You need an ABN.
    2. You need to register for GST.

The ATO requires all UberX and rideshare drivers to have an ABN and be registered for GST from the first dollar they earn. This applies even if you only drive occasionally.

The $75,000 GST threshold is exempt for rideshare drivers as the ATO has special rules for taxi and rideshare drivers and you have to be registered for GST. This means you have to pay GST on all your income including UberEats, UberX and any other income you earned from your small on your ABN.

Now that you have worked out which category you fall under, let’s discuss your tax obligations.

Tax obligations for drivers of UberEats or other food delivery company.

Category A

Step 1. Get an ABN.  You can apply for an ABN free of charge in the Rideshare Tax app.

Step 2. Keep track of all your income and expenses. Use the free Rideshare Tax to do this.

Step 3. Keep a car logbook. Refer to our blog on Keeping a vehicle logbook for your ridesharing business for details on this. You will need this for Step 4.

Step 4. Lodge income tax return. If you followed Step 2 then all your income and expenses can be retrieved through the app. This information can then be used in your end of year tax return.

Category B

Step 1. Get an ABN and register for GST. You can apply for an ABN/GST free of charge in the Rideshare Tax app.

Step 2. Keep track of all your income and expenses. Use the free Rideshare Tax to do this.

Step 3. Keep a car logbook. Refer to our blog on Keeping a vehicle logbook for your ridesharing business for details on this. You will need this for Step 4 and 5.

Step 4. Lodge your quarterly Business Activity Statement (BAS) to the ATO. This is simple if you followed Step 2 and kept track of all your income and expenses.

Step 5. Lodge income tax return. If you followed Step 2 then all your income and expenses can be retrieved through the app. This information can then be used in your end of year tax return.

And that’s it. Once you work out which category you fall under, the rest is easy. Just follow the steps and use the tools we have ready to go for you.

 

By |2019-07-17T20:20:56+10:00July 15th, 2019|Categories: BAS, GST, Logbook, Tax|Tags: , , , , |0 Comments

About the Author:

Michael K
Michael is a Qualified CPA Accountant and Registered Tax Agent.

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