Government’s Take on ABNs and GST for Uber X Drivers: To Wipe Out

Social media and internet have taken a huge part in numerous commodities nowadays. In the past years, the internet made a huge innovation in the field of public transportation with the introduction of Uber taxis.  In this type of enterprise service, passengers are able to get their cabs through online application directly connected to taxi drivers. This innovation made the life of many passengers easy, convenient and comfortable. Moreover, it also opens an avenue for many taxi drivers to earn extra cash along the way.

What the government says about it?

However, the government does not approve the idea of Uber Taxis, although they have been roaming the streets and national highways in operations for quite a while now. The Federal Government has showed its disapproval of the service and brought the issue of possible tax evasion among operators of Uber. In this connection, the government requires the drivers to apply for their own ABNs. In addition, they need to be registered in GST, nonetheless of their total income per annum. As a result, operators will be obliged to increase their fare to make up with the additional incurred taxes.

What the public says about it?

Although there is a very minimal action that can be done on the public’s end, there are still stories roaming among the public. This action from the government has placed the people, especially those who are using this public enterprise, torn between availing the convenience the service provides and the act of paying increasing fare. The public is now thinking if there is such thing as revenue control over this new enterprise.

What are ABNs and GST?

ABNs and GSTs are the form of federal government’s method to hold and monitor enterprises in the country. ABN or Australian Business Number is the numeric 11-digit issued by the Australian Taxation Office (ATO) to identify all registered in the country. A business entity should at least earn $75 000/annum to register. On the other hand, GST the additional 10% incurred tax on top of any goods or services in the country.

Uber taxis fall under ATO classification and are now required to file their ABNs and GST. However, there are easy ways to register online for free, using the app EasyABNs. It will take 3-5 days to process the registration and the registration copy will be mailed to the driver’s address.

In the eyes of the scrutinizing public

Since the memo issuance of the memo, numerous operators and taxi drivers have registered in the ABNs and GSTs. Although there is an anticipated change in the fare, the operators are giving the public some discretion and adjustment, the same as what they ask from the federal government.

Although the goal to generate fund and improve public service is the main goal for income generating taxes like this for the government, the public is expecting better and much improved service for them. Besides, this should be the main purpose of public tax in the first place.