Uber should charge their fee on the total fares excluding GST
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Uber promote that they take 22% or 27.5% of the fares. This is deceptive as uber are taking 22% or 27.5% of the total fares including the GST which makes their fee higher in reality. Drivers are responsible for the GST and pay it as 1/11 of the total fares, so in effect, uber are taking commission or a fee on the GST portion.
Comment from an ATO representative... (based on previous rates)
'Hi Sydney Uber,
Using your example of $110.00 fare:
Amount of fare: $110
Commission @25% of gross fare: $27.50
Using this example, I think the point you are making is that the commission of $27.50 is actually 27.5% of the nett (GST exclusive) fare.
Whilst that is true, the amount of the commission is a commercial matter to be worked out between the facilitator and drivers, and it is not something that the ATO has control over.'
Proposed for über to charge fee on total ex GST
Uber fee as $10 as 20% of $50
uber are currently taking $11 as 20% of the $55
Net driver $40 and a net of $5 GST (before any get credits)
Currently for this same fare, a driver will only make $39
On $55,000 per year of total fares inc GST, a driver would make an extra $1,000 per year if uber were to base their fee on the total fare excluding GST.
Quite happy for uber to raise the per km rate to ensure they are not out of pocket and a slight increase in fares will have zero effect on riders. Ensuring the profitability of quality drivers is paramount.
Uber Drivers need a rate rise primarily but this petition is for Uber to change the way they calculate their fee, resulting in more in the pocket for drivers.
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