See following a recent ATO post on this topic:

Providing taxi travel services through ride-sourcing and your tax obligations.

The views in this product relate to the meaning of the word ‘taxi’ as it appears in the GST law. For GST purposes, the word taxi takes on its broad ordinary meaning of a car (vehicle) made available for public hire that is used to transport passengers for fares.

State and Territory laws regulating transportation of passengers contain specific definitions of the term ‘taxi’. As such, it is possible a vehicle may be a taxi for GST purposes, but not for State and Territory regulatory purposes.

The ATO expresses no view about whether ride-sourcing vehicles are taxis within the State and Territory specific definitions. More generally, the ATO expresses no view on the legality of ride-sourcing arrangements. The sole purpose of this document is to clarify how the tax laws administered by the ATO apply to ride-sourcing.

What is ride-sourcing?

Ride-sourcing is an ongoing arrangement where:

  • you (a driver) make a car available for public hire
  • a passenger uses, for example, a website or smart phone app provided by a third party (facilitator) to request a ride, and
    you use the car to transport the passenger for payment (a fare) with a view to profit.
  • Ride-sourcing arrangements can be enabled by a technology platform maintained by a third party (a facilitator). Typically, a website or mobile device application is used to facilitate a transaction between a driver and a passenger.

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