Considerations for Uber workers

Uber has provided a range of options for people who are looking for additional work.

There are, however, certain rules about the type of car and age of car that can be used for example. There are also licencing and insurance considerations to carry passengers.

Plenty of winners have emerged from Uber and other ride sharing services such as governments, petrol stations, mechanics, the driver and car dealers in most cases. Accountants are also kept busy, as you will need to lodge quarterly BAS and a business tax return each year.

As a driver, you will generate revenue but there will be expenses on fuel, maintenance, repairs, tyres, higher insurance and registration costs, plus your vehicle will have accelerated depreciation as you might be travelling 40,000 to 60,000 kilometres in a 12 month period, whereas normal driving without Uber would be 10,000 to 15,000 kilometres.

In our experience we have drivers turning over $80,000 to $130,000 depending on the city and times of day and if operating on weekends, but the net take home will generally range from $30,000 (below the minimum wage on hours) to $70,000 which is unusual and normally means working unusual and unsociable hours.

There are a lot of underemployed people, those in between jobs and students who operate under the Uber banner to provide a bit of extra money which helps to pay the bills and this is perhaps how Uber and other ride share providers envisaged their services might be facilitated. This is maybe a smarter way of using the platforms and not totally bringing forward the replacement of a vehicle at an accelerated rate.

Still, the operators need to take into account the costs and in particular the GST and GST reporting which can add up to over $1,200 per year.

If you are an Uber driver, please contact us today for a free initial consultation.

David Cornes CPA

Last updated: 10th March 2020