For GST purposes, the word taxi means a car (vehicle) made offered for public hire that is used to transport passengers for fares. State and territory laws adaptable transportation of passengers contain exact definitions of the term taxi. It is possible for a vehicle to be a taxi for GST purposes, but not for state and territory regulatory purposes. This information clarifies how the tax laws ATO control apply to ride-sourcing. ATO express no view concerning whether ride-sourcing vehicles are taxis within the state and territory specific definitions, or on the authority of ride-sourcing arrangements. 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
- you use the car to transport the passenger for payment (a fare) with a view to profit.
- non-commercial car-pooling arrangements where passengers contribute petrol money or other planning where there is no view to profit
- car sharing arrangements where multiple users have way in to a car which they use to drive themselves from one location to another
- arrangements that use vehicles other than cars, for example motorized tricycles
- arrangements where a car is used only to transfer passengers for a particular purpose, for example a wedding or a funeral procession, and which is not made available more generally to ship members of the public from one place to another.