Get it right from the start so you don’t have to backtrack later.
- Know what your tax and GST obligations are.
See the ATO’s checklist and handy tips for ride-sourcing drivers, and understand what you have to do.
- Know what you can and can’t claim as a tax deduction.
You’ll probably use your car for both personal and work-related use. This means you need to apportion your expenses.
- Practice good record keeping!
You need to keep records of all your income and expenses for at least five years. Try the ATO app’s myDeductions tool to capture information on the go and keep records of your receipts and car trips.
- Know how to issue a tax invoice.
You need to issue tax invoices for fares over $82.50 if your passenger asks you for one.
For more information on ride-sourcing, go to https://www.ato.gov.au/ridesourcing
The ATO is rolling out some free ‘Introduction to Tax Essential: Ride-sourcing’ workshops to help drivers get it right. Keep an eye out to see if there’s a presentation near you.
If you would like information in another language, the ATO has ‘Ride-sourcing – the basics’ published in seven languages. Visit https://www.ato.gov.au/otherlanguages and go to the Business section of your language.