Taxing Uber taxis: The government new plan to muscle out ride sharing

They’re around 40% cheaper than cabs, but that’s not the only reason why the government wants them gone.

They’re under increasing pressure from taxi operators to shut down the covert ride share app, as it’s affecting sales, not to mention some taxi drivers have to pay tens of thousands of dollars for a taxi licence, whilst almost anyone can become an Uber driver.

But as more and more Australians become drivers and riders, it was clear that government intervention was needed. Now, Uber must pay GST – making all rides 10 per cent more expensive, effective from yesterday.

Last week the ATO ruled that UberX drivers must pay GST, but the ride-sharing app has other ideas, releasing a statement to their riders yesterday.

Sent from ‘David’, the General Manager of Uber’s Australian operation, the long email said that now Uber drivers are expected to pay tax despite truck drivers, bike couriers, and Airbnb hosts, not collecting GST until they reach $75,000 in turnover a year.

“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.