As Uber continues to grow in popularity more and more Australians are taking up driving for the San Francisco based company. As with all income producing activities in Australia, it is important to understand the tax implications involved in driving for Uber and participating in the ride sharing economy.

Below is a list of the 7 key tax issues to consider relating to Uber here in Australia:

1. Although you work solely for Uber it is important to note you are not an employee for Uber, rather you are a contractor.
2. Provided you are an Australian Resident for tax purposes (which is true for most Australian workers) all Uber income is taxable and must be declared in your personal Income Tax Return.
3. Uber does not withhold any tax on your income, as a result it is imperative that drivers put money aside for future tax liabilities.
4. All drivers must be registered for Goods and Services Tax (GST) even though annual earnings for Uber may be less than the compulsory GST registration threshold of $75,000 AUD.
5. Drivers must have a current Australian Business Number to drive for Uber. As a result the Australian Taxation Office (ATO) has the ability to data match the amounts Uber has paid you, with the amount you have declared in your personal Income Tax Return.
6. If you received wage & salary income (from another job) in addition to your Uber income, the two amounts will be combined for tax purposes. It is important for drivers to consider whether or not the combined income amount, for the financial year period 1 July – 30 June, will push them into a higher marginal tax bracket for the purposes of estimating their future tax liabilities and keeping money aside to settle such liabilities.
7. Operating costs of the vehicle can be claimed against your Uber income provided certain conditions are met. It is essential that receipts and records are kept of all expenses incurred for the vehicle so that in the event of a tax audit you can substantiate your expense claims to the ATO.

If you or someone you know are considering joining Uber, whether it be for the primary source of income or for some additional funds, seek advice from qualified experts to ensure Australian tax obligations are met in full.