Uber Australia lost a major court case over GST that could push up fares

Publication: Business Insider Australia,

Uber has lost a Federal Court case over whether its drivers should be charged GST, in a blow to its operations in Australia that could result in higher fares. Usually, businesses that earn less than $75,000 per year are exempt from GST, but taxi are specifically left out of this relief — meaning drivers must pay the tax regardless of their earnings. The Australian Taxation Office had counted UberX drivers as taxi drivers, but the ridesharing giant challenged that interpretation in the courts. Uber has claimed that most UberX drivers earn less than $20,000 a year and that they are not driving taxis — citing that customers can’t hail cars off the street or use a taxi rank.

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