Uber Driver Tax in Australia: GST, Deductions & Food Delivery
Driving for Uber or delivering food in Australia? Here is what you need to know about GST, income tax, deductions and BAS.
By Timothy Hirou GaschereauPublished 11 min read
You have signed up to drive for Uber, or you are dropping off DoorDash orders between shifts, and now you are wondering what the ATO actually wants from you. The short answer: more than you might think, and sooner than you would expect. This is your plain-English guide to Uber driver tax in Australia.
The single biggest gotcha: the rules are completely different depending on whether you carry passengers or deliver burritos. Rideshare drivers face a much stricter GST obligation than food delivery drivers. Get it wrong and the ATO can back-date your obligations; get it right and you will claim deductions like a pro. It is general information only, not tax advice.
🎯 The essential: Rideshare (Uber, DiDi, Ola, Bolt) is treated as “taxi travel”, so you MUST register for GST from the very first dollar, no $75,000 threshold. Food delivery follows the normal $75,000 GST threshold. Both need an ABN. Declare all income (fares, tips, incentives). Claim the business-use portion of car costs, phone, platform fees and more. The GST you collect (1/11th of fares) is not your money, set it aside.
First things first: ABN, and GST from dollar one
Before you accept a single passenger or delivery, you need an Australian Business Number (ABN). Platforms treat you as an independent contractor, not an employee: no one is withholding your tax, paying your super, or handling your GST. You are running a small business (see our sole trader tax guide and when you need an ABN).
If you carry paying passengers, the ATO classifies it as “taxi travel”, so you must register for GST from the very first dollar. There is NO $75,000 threshold for rideshare. If you already have an ABN, you must register for GST within 21 days of starting. The ATO can and does back-date GST, so do this before your first passenger.
Rideshare vs food delivery: the crucial GST difference
This is the most important distinction in the whole article. Read it twice.
| Rideshare | Food delivery | |
|---|---|---|
| ABN required | Yes, before you start | Yes, before you start |
| GST registration | From the first dollar | Only at $75,000 turnover |
| ATO classification | 'Taxi travel' | General services |
| Charge GST on fares | Yes (1/11th of fare) | No, unless GST-registered |
| Lodge BAS | Yes, usually quarterly | Only if GST-registered |
The catch: if you do BOTH, the rideshare rule wins. The moment you carry one paying passenger, you must register for GST, and that applies to all your gig income, including deliveries.
Declaring your income
Every dollar through a gig platform is assessable income: fares and delivery fees, tips (even cash), surge and peak bonuses, and referral or sign-on incentives. The platform provides an end-of-year tax summary, but cross-check it against your own records. For rideshare, remember the GST component (1/11th of fares) is not your income: earn $55,000 in gross fares and your assessable income is $50,000, with the $5,000 GST going to the ATO. The ATO receives data directly from platforms and cross-matches it, so declaring everything is the only sensible approach.
What you can claim
Running a car is expensive, and much of it is deductible, but only the business-use portion. Two methods for car costs:
- Logbook method: keep a logbook for 12 consecutive weeks to set your business-use percentage, then claim that percentage of all actual running costs (fuel, rego, insurance, servicing, tyres, depreciation). Depreciation is capped at the ATO car limit (around $69,674 for 2024-25, check the current figure). Valid for 5 years.
- Cents-per-kilometre method: a set rate per business km (around 88c for 2024-25, check the current rate), capped at 5,000 business km per car per year. No fuel receipts needed, but keep records of how you worked out the km.
Other deductions: the business-use portion of your phone and data, platform service fees, tolls and parking on a job, car cleaning, passenger items (water, mints, chargers), and the business-use portion of car insurance. Important: many standard policies do not cover rideshare, so check your cover. You cannot claim private driving, parking fines, or any private portion.
GST, BAS and PAYG instalments
As a GST-registered rideshare driver you collect GST (1/11th of each fare) and lodge a Business Activity Statement (BAS), usually quarterly, paying the ATO the GST collected minus your GST credits on business expenses. Lodge on time, late BAS attracts penalties. Once profitable, the ATO may put you on PAYG instalments to pre-pay income tax quarterly, which you can vary if your income changes. Not yet on instalments? Set money aside yourself.
Records and setting money aside
Be blunt with yourself: the GST you collect is not yours. Move it to a separate account the moment it lands. Beyond GST, set aside a tax buffer (a rough guide is 25% to 30% of net income after GST, though your real figure depends on your total income). Keep the platform tax summary, your logbook, all receipts, BAS records and bank statements for at least five years. In your first year especially, a registered tax agent is worth every dollar, and their fee is deductible.
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❓ Frequently asked questions
Do Uber drivers need to register for GST?
+
Yes. Rideshare drivers (Uber, DiDi, Ola, Bolt) must register for GST from the very first dollar earned. The standard $75,000 turnover threshold does not apply because the ATO classifies rideshare as 'taxi travel'. You need GST registration before you accept your first passenger.
Do I need an ABN to drive for Uber or deliver food?
+
Yes. Whether you carry passengers or deliver food, you are running a business as a sole trader, not an employee. You need an Australian Business Number (ABN) before you start, free to apply for at abr.gov.au.
Is food delivery treated the same as rideshare for GST?
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No, and this is the key distinction. Food delivery (UberEats, DoorDash, Menulog) is not 'taxi travel', so the standard $75,000 GST threshold applies: you generally do not register until turnover reaches $75,000. But if you do both rideshare and food delivery, the rideshare rule triggers GST registration for everything.
What can Uber drivers claim on tax?
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The business-use portion of car costs (logbook or cents-per-kilometre method), your phone and data, platform service fees, tolls, car cleaning, passenger items (water, mints, chargers), and the business-use portion of car insurance. You cannot claim private driving or parking fines.
How do I pay GST as an Uber driver?
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As a GST-registered rideshare driver you collect GST as part of every fare (1/11th of the total fare). You lodge a Business Activity Statement (BAS), usually quarterly, and pay the ATO the net GST (collected minus GST credits on your business expenses), through myGov or ATO online services for business.
Do I pay income tax on Uber earnings?
+
Yes. All earnings (fares, tips, surge, bonuses and incentives) are assessable income and must be declared. For rideshare, your assessable income is the amount after removing the GST component (1/11th of gross fares), because that GST belongs to the ATO. The ATO receives platform data and cross-matches it.
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Sources
This article is general information only, not tax advice. GST rules, car limits and per-kilometre rates are set by the ATO and change over time. Check the ATO or a registered tax agent for guidance specific to your driving.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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