Uber to charge GST on all trips

[amaroo]

Cool result!

 

[lovestotravel]

But who wins in the long term. Yes reduced prices for now. What about later? No one wants to run at a loss forever?

Uber X prices are already cheaper in Melbourne, they dropped 15% a week or three back

Speaking to a few drivers, their earnings are down and they are only going to drive on weekends

Seems to be poorer and poorer quality cars/drivers around now

The big question is will Uber add 10% GST to the current rates or leave rates as is, and make the driver pay the GST from their current earnings

 

[Ausbt]

Either someone's pocketing or someone's paying the GST.

It's an interesting one. My Amex actually reads 'Agoda London' as the merchant. Now another interesting point is that I was in the UK in January (in fact I'm back here now as well). After returning to Oz and actually at the time of making this booking, I noticed that the Agoda website, even when booked via Virgin Australia, always came up in GBP currency. There is no currency conversion on the statement though.

 

[Aussie_flyer]

Considering the huge increase iN uber black in Melbourne recently i hope the gst would be absorbed for uber black pricing there

 

[coyote25]

So UberX is an illegal service in Australia
Yet the ATO wants to claim 10% GST

Seems to be legal then and the taxi industry can now shut up and go away

Actually the ATO can and does collect taxes on illegal activity for example the drug trade, prostitution (even when illegal) etc. Getting taxed doesn't have to equal legal status, for the most part legal status is a state issue.

 

[medhead]

There is no relationship between being legal and being taxable. The Tax office has for a long time treated ALL income as generally taxable and indeed has published rules on this e.g.

CCH iKnow

To summarise

The tests as to whether an amount is assessable income under subsection 25(1) ITAA are the same for amounts received from legal and illegal activities. Where a taxpayer systematically engages in an illegal activity and the elements of a business are present such as repetition, regularity, view to a profit and organisation, the proceeds from the activity have an income character.

In fact this TR draws on English case law back as far as 1886.

Actually the ATO can and does collect taxes on illegal activity for example the drug trade, prostitution (even when illegal) etc. Getting taxed doesn't have to equal legal status, for the most part legal status is a state issue.

Indeed. What did they get Al Capone on - unpaid tax?

Or to put it another way: it's also illegal to not pay tax.

 

[trippin_the_rift]

Australia is really messed up. Great way to kill off innovative companies - no wonder almost every big start-up gets the FK out of Australia.

All this will do is drive uber to innovative. Coming soon.... "Uber Credits" you can buy online through their BVI company.
IMO the gov is better off figuring out a 2015 approach to their problems. Taxation is never the answer.