Leyonhjelm seeking GST justice for taxis

Taxi and Uber drivers will pay half a billion dollars to the federal government over the next four years under a rule that forces them to pay GST from the first dollar earned.

Liberal Democrats senator David Leyonhjelm, releasing a costing from the Parliamentary Budget Office on Sunday, says other micro businesses earning less than $75,000 don't have to collect GST.

"This is not good news for any of us because it discourages people from becoming drivers, thus making it harder for those of us who want to get a ride," Senator Leyonhjelm told AAP.

"For businesses, red tape is more than an inconvenience, it discourages entrepreneurialism and costs jobs,"