Australian UberX prices increasing by 10% as of today

UberX prices are increasing by 10% in all Australian cities where the app-based ridesharing service is available, following an Australian Tax Office (ATO) ruling made in May.

UberX prices are increasing by 10% in all Australian cities where the app-based ridesharing service is available, following an Australian Tax Office (ATO) ruling made in May.

In May, the ATO made the decision to classify the service as taxi travel, requiring all UberX drivers to register for and charge GST by August 1, regardless of their annual income. Uber's drivers were previously not required to charge the tax.

"Affected drivers must register for GST, charge GST on the full fare, lodge business activity statements and report the income in their tax returns," said ATO Deputy Commissioner James O'Halloran following the ruling. "The existing tax law applies equally whether a buyer and seller come together at a bricks and mortar business or via a mobile phone app or web site."

Independent contractors are typically exempt from paying GST if they earn under AUD$75,000, but must do so if they are providing taxi services.

The fare increase follows news that Uber is taking the ATO to court over the GST demands, with the company claiming its drivers are being unfairly singled out.

"Uber believes that all of its driver partners should pay their appropriate share of tax," said the company in a statement. "However, we believe driver partners and riders are being unfairly singled out, and so Uber is challenging the ATO's position in the Federal Court of Australia."

"In the meantime, given the additional costs that might be incurred by driver partners as a result of the ATO's guidance, UberX prices are increasing today by approximately 10% in each Australian city where UberX is available."

The 10% UberX price increase is already in effect.

Leave a Reply