In this series, we review a range of common questions we receive regarding when it is appropriate to register for an ABN. With more and more people joining the share economy to earn additional income, find out if you need an ABN for rideshare companies such as Uber or Lyft.
Do you need an ABN for Uber
If you are a driver for ridesharing services such as Uber, you must register for an Australian Business Number (ABN) as well as GST. You can apply for an ABN through LawPath’s ABN registration service. Complete your application within 5 minutes and receive your ABN within 24 hours.
As a rideshare driver you are a sole trader running a business. This on the basis that you are:
- Providing commercial services;
- With the intention to profit from these services;
- Offering these services on a regular basis; and
- Engaged in business activities such as picking up riders for the reasons stated above.
GST Registration for Uber Drivers
As an Uber driver, regardless of your income, you must account for GST on all earnings. Unlike other small businesses such as online stores and market stalls, rideshare drivers do not qualify for the GST registration threshold of $75,000. This means that if you only make $5 total as a driver, you will need to register for GST and declare the income on your tax return. As a result, drivers are also entitled to a range of tax credits and can claim the expenses related to providing their rideshare services.
Independent Contractor v. Employee
At present, rideshare drivers are considered independent contractors based on a range of factors including the driver’s ability to choose their own hours and personal ownership of the vehicle. Check out our previous guide for more information on the difference between an employee and independent contractor.
Apply for your ABN and start driving today. Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.