Do I need an Uber Ride Share Accountant?

Note this article is for Australia only.

Uber (and other ride share) drivers are required to be registered for GST in the same way the Australian taxi industry is required to collect GST (Goods and Services Tax) on all fares.  

In order to register for GST, you first need an ABN (Australian Business Number). Your accountant can setup an ABN on your behalf.  Of course you can also setup an ABN yourself but it’s actually a tricky process and one wrong answer or input will cause delays and possibly result in the ATO rejecting your application for an ABN. Only people with genuine reasons for starting a business can apply for an ABN.

You may want to consider giving your Uber ride share business a name.  It’s a small cost but shows the ATO you are serious about running a professional ride share business. Again your ride share accountant will help you setup the Business Name with the relevant state authority and ASIC (Australian Securities & Investment Commission).

Once you have your ABN and are registered for GST you will be required to submit a Business Activity Statement (BAS) to the ATO every quarter ending September, December, March and June. Again this is something your accountant should do for you.  It comes at a small cost to ensure you lodge accurately and also to be sure you are claiming the most available tax deductions.

It’s important as a ride share business collecting GST on behalf of the Australian government that you correctly budget for the 10% GST you will be collecting on every fare.  Ideally you would have a separate bank account to keep the GST money you need to remit to the Australian government each quarter.

Finally it’s important that you use some cloud software to accurately track your Uber income and expenses and most ride share businesses are using Xero to “keep the books” of the business. Xero will let you know how much GST you owe the government and will make it easier and less costly for your accountant ro review your books and prepare each of the quarterly BAS.  Make sure your accountant is a Xero Certified Advisor.