In the ATO’s Sights: Contractors & Taxi / Ride Sharing Providers (Mar 25 Tax Update)

Relevant For:

Small-business contractors and taxi / ride-share service providers.

Key Points:

• ATO releases statement putting contractors and taxi / ride-share service providers on notice.
• Contractors must report all income accurately.
• Businesses report contractor payments via TPAR to the ATO.
• Taxi and ride-share providers must register for GST regardless of turnover.
• Non-compliance risks audits, penalties and interest charges.

Full Article:

Operating outside Australia’s tax system carries serious risks and the Australian Taxation Office (ATO) has recently put small-business contractors and taxi / ride-sharing providers on notice.

If you’re a contractor in fields such as construction, cleaning or IT, your income is likely reported to the ATO by the businesses engaging your services via a Taxable Payments Annual Report (TPAR). Failing to accurately declare this income in your tax return can trigger ATO investigations, resulting in amended tax assessments, penalties and interest charges.

Taxi and ride-sharing service providers have compulsory GST registration regardless of turnover. All income, including platform-generated fares, must be reported, with GST collected and paid to the ATO. Ignoring this obligation risks fines, audits and additional scrutiny.

You need to be proactively managing these requirements to avoid penalties and maintain peace of mind.