Delivery Driver Tax Deductions Australia (FY2025-26)
As a delivery driver in Australia, understanding your tax deductions for the FY2025-26 tax year can significantly reduce your taxable income and increase your refund. This guide is specifically tailored for drivers working for platforms like Uber Eats, DoorDash, Menulog, or independent contractors providing delivery services. We'll cover common work-related expenses, from vehicle costs to phone usage, helping you navigate the ATO's requirements. Keeping meticulous records is crucial for substantiating your claims, so always retain receipts, logbooks, and invoices. By optimising your deductions, you can ensure you're only paying your fair share of tax.
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What Delivery Drivers Can Claim
Vehicle & Travel
Vehicle expenses are typically the largest deduction for delivery drivers, covering costs like fuel, registration, insurance, and maintenance for the portion of use related to your work.
- Fuel and Oil
Claim the work-related portion of fuel and oil costs. You'll need to keep a logbook for 12 continuous weeks to determine your business use percentage.
Receipt required - Vehicle Registration & Insurance
Deduct the work-related portion of your vehicle's registration and comprehensive insurance premiums.
Receipt required - Maintenance and Repairs
Claim the work-related percentage of costs for servicing, tyres, and any repairs to your delivery vehicle.
Receipt required - Cents per Kilometre Method (Up to 5,000km)88¢/km
If you travel 5,000 work-related kilometres or less, you can claim 88 cents per kilometre without a logbook, but you must be able to show how you calculated the kilometres.
No receipt needed - Car Loan Interest
If your vehicle is financed, you can claim the work-related portion of the interest paid on your car loan.
Receipt required
Tools & Equipment
Certain equipment essential for your delivery work, such as insulated delivery bags or phone mounts, can be claimed as a deduction.
- Insulated Delivery Bags/Boxes$50-$150 each
The cost of specialised insulated bags or boxes used to keep food hot or cold during deliveries is deductible. If over $300, it must be depreciated.
Receipt required - Phone Mount/Cradle$20-$60
A mount or cradle used to securely hold your phone for navigation while driving for work is a deductible expense.
Receipt required - Power Bank/Charger$30-$80
Portable power banks or car chargers used exclusively or predominantly for keeping your work phone charged during delivery shifts.
Receipt required - Safety Vest/Equipment$20-$50
Any high-visibility vests, safety shoes, or other protective equipment purchased specifically for your delivery role (and not reimbursed).
Receipt required
Phone & Internet
Given the reliance on mobile apps for delivery work, a portion of your phone and internet expenses is often deductible.
- Mobile Phone Usage
Claim the work-related percentage of your mobile phone bill, which includes data and calls used for navigation, accepting orders, and communicating with customers/platforms. You'll need to show a reasonable basis for your claim.
Receipt required - Internet Costs (if home-based admin)
If you perform administrative tasks for your delivery business from home (e.g., managing accounts, scheduling), a portion of your home internet could be deductible.
Receipt required
Other Work-Related
This category covers various other essential expenses incurred while performing your delivery driver duties that aren't captured elsewhere.
- Platform Service Fees/Commissions
Any fees or commissions charged by the delivery platform (e.g., Uber Eats, DoorDash) that are directly related to your earnings are deductible.
Receipt required - Bank Fees
Specific bank fees incurred for a separate business bank account used solely for your delivery income and expenses.
Receipt required - Accounting & Tax Agent Fees
The fees paid to a registered tax agent for preparing and lodging your tax return, especially if it includes your delivery driver income and expenses, are deductible.
Receipt required - Roadside Assistance
The work-related portion of a roadside assistance membership (e.g., NRMA, RACV) that covers your delivery vehicle.
Receipt required
Self-Education
While less common for delivery drivers, self-education expenses are deductible if they directly relate to improving your skills or knowledge for your current delivery role.
- Traffic Safety Courses
Costs for courses directly related to improving your driving safety or efficiency for your delivery work, provided it's not for obtaining a new licence type.
Receipt required - First Aid Certification$100-$200
If having a first aid certificate is a requirement or directly beneficial for your delivery role (e.g., if you transport passengers or sensitive goods), the course cost may be deductible.
Receipt required
Special Situations for Delivery Drivers
Rideshare vs. Delivery
If you perform both rideshare and delivery services, ensure your logbook accurately separates the kilometres for each activity if you want to claim different rates or if your vehicle use percentage differs. The ATO scrutinises mixed-use claims.
Operating as a Sole Trader
Most delivery drivers operate as sole traders. This means you report your income and expenses in your individual tax return. Consider obtaining an ABN if you don't already have one, as some platforms may require it.
Electric Vehicle Considerations
If using an electric vehicle for deliveries, you can still claim fuel (electricity) costs, and the vehicle itself may be eligible for depreciation deductions. Keep detailed records of charging costs and work-related usage.
Common Mistakes Delivery Drivers Make
| Mistake | What to do instead |
|---|---|
| Claiming 100% of car expenses without a logbook | Always maintain a logbook for 12 continuous weeks every five years to establish your business use percentage, unless claiming the cents per kilometre method for under 5,000km. |
| Not keeping receipts for small cash purchases | Even for small amounts like car wash or bottled water bought during shifts, keep digital or physical receipts. They add up and substantiate your claims. |
| Claiming personal phone use as work-related | Only claim the portion of your phone bill that directly relates to your delivery work. Review your bill for work-related calls and data usage to make a reasonable estimate. |
| Claiming items already reimbursed by the platform | You cannot claim expenses for which you have already been reimbursed by the delivery platform. Only claim out-of-pocket expenses. |
| Incorrectly claiming home office expenses | Delivery drivers rarely qualify for extensive home office claims. You can claim the fixed rate of 70c/hour for specific work done from home, but not occupancy costs like rent or mortgage interest. |
How AusTax AI Helps Delivery Drivers Track These Year-Round
Tracking 25+ deductions across the financial year is the hard part. Here's how AusTax AI does it for you — every feature below is free, unlimited.
Snap-and-archive
Photo of any receipt — AI reads the merchant, amount, and date in seconds. No manual entry, no spreadsheets.
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Batch upload
Drop an entire folder of receipts at once. AI processes them in parallel in the background while you do other things.
Auto-categorize for delivery drivers
AI knows what's deductible for delivery drivers under FY2025-26 ATO rules. Each receipt is tagged to the right category (Professional Memberships, Uniform, etc.) — so you never miss what you're entitled to.
5-year ATO compliance
Receipts stored securely with timestamps and category metadata. The ATO requires 5 years of records — done automatically.
Audit risk score
Before you click Lodge in myTax, see a confidence score for each claim. Catch over-claims and missed deductions in advance.
How to Claim These on myTax
To claim these expenses, lodge your tax return through ATO myTax. Each deduction goes into the matching section (Work-Related Expenses, Self-Education, Donations, etc.). For a step-by-step walkthrough of every myTax screen — from logging in to receiving your refund — see our complete lodgement guide.
Records to Keep
The ATO requires you to keep records for 5 years from your lodgement date. FY2025-26 receipts should be kept until 31 October 2031. Acceptable formats: original paper receipts, photos or scans (digital copies are accepted), bank or credit card statements, and logbooks for vehicle and WFH claims.
Frequently Asked Questions
Do I need an ABN as a delivery driver?
Yes, if you're an independent contractor working for platforms like Uber Eats or DoorDash, you're generally considered to be running a business and will need an ABN. This is how you'll invoice for your services and report your income.
How do I prove my car expenses for tax?
You need either a valid logbook (for 12 continuous weeks every five years) to determine your business use percentage for all vehicle costs, or you can use the cents per kilometre method for up to 5,000 work-related kilometres. Retain all fuel, repair, registration, and insurance receipts.
Can I claim the cost of my delivery uniform?
If your uniform bears the logo of the delivery company and is unique to your work, or if you purchase specific protective clothing, it can be claimed. General clothing (e.g., t-shirts without a logo) is not deductible.
What if I use my personal phone for work?
You can claim a percentage of your mobile phone bill that reflects your work-related usage (calls, data for navigation and apps). Review your phone bill and keep records to establish a reasonable work-related proportion.
Can I claim car washing expenses?
Yes, you can claim the work-related portion of car washing expenses if keeping your vehicle clean is a requirement for your job or directly related to the presentation of your vehicle for business purposes. Keep receipts.
What records should I keep for tax time?
Keep all receipts for fuel, repairs, insurance, registration, phone bills, delivery bags, and any other work-related expenses. Maintain a logbook for vehicle travel and record your shifts/income details.
Quick Checklist
- Obtain an ABN if you don't already have one.
- Start and maintain a logbook for 12 continuous weeks for your vehicle if claiming actual costs.
- Keep all receipts for fuel, maintenance, insurance, and registration.
- Track all work-related kilometres driven, even if using the cents per kilometre method.
- Retain receipts for delivery bags, phone mounts, and other essential equipment.
- Review your mobile phone bill to determine your work-related usage percentage.
- Keep records of any platform fees or commissions charged.
- Save invoices for tax agent fees and any business-related bank fees.
- Store all receipts and records digitally or physically in an organised manner.
- Consider setting aside a portion of your income for tax obligations throughout the year.
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Related Occupations
This list provides general guidance based on common deductions for this occupation. Your individual eligibility depends on your work duties and supporting evidence. AusTax AI is not a registered tax agent — for complex situations, consult a registered tax agent.