Become an Uber Driver?
It is not as complicated as you think.
The first thing you will need after you have become an uber driver is an ABN. No matter how many rides you do – Uber driving is a business.
You will also need to register for GST. Forget the $75k threshold for other businesses. As an Uber driver you will need to be registered even if you only earn $1.
What this means is:
- You will need to lodge a quarterly Business Activity Statement.
Keep a track of the income from your Uber driving and your car expenses. You can do this using a spreadsheet or by using an accounting software package like Xero.
The car expenses you can claim will be your car’s business use percentage.
Your business use percentage is calculated by keeping a track of all the kilometres you drive in your car for a 2 week period – and whether these kilometres are for Uber or not.
Your Uber kilometres are then divided by the total kilometres travelled in your car. This is your business use percentage.
- You will need to give your Uber income, motor vehicle expenses and the business use percentage for your car to your accountant so we can prepare a Business Schedule in your tax return.
It’s that simple! Happy driving!