Uber Hikes Oz Prices 10pc
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Thinking of hailing a ride with an Uber driver today? Be prepared for a price shock – your driver will be demanding 10 percent extra after the Tax Office ruled that from this week Uber drivers, like other taxi drivers, must charge GST on every ride.

Uber had previously told its drivers that they were exempt from paying GST.

But “affected drivers must register for GST, charge GST on the full fare, lodge business activity statements and report the income in their tax returns,” ATO deputy commissioner James O’Halloran has ruled.

Uber is fighting that ruling in the Federal Court, arguing it is being “singled out”, but in the meantime has no choice but to impose the tax.

“To be very clear, Uber believes that all of its driver partners should pay their appropriate share of tax,” Uber Australia GM David Rorsheim said. “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.”

Rorsheim claimed that, despite the ordered price increase, an UberX ride would still be some 25 to 35 percent cheaper than taxis.