Rideshare Driver (Uber etc.) Tax Deductions Australia (FY2025-26)
Welcome to your essential tax deduction guide for Australian rideshare drivers for the 2025-26 financial year (1 July 2025 – 30 June 2026). As an independent contractor, understanding your tax obligations and maximising legitimate deductions is crucial for optimising your income. This guide is designed to help you navigate the complexities of tax law, ensuring you claim everything you're entitled to. Rideshare drivers typically claim deductions related to vehicle expenses, phone and internet use, and other operational costs. By meticulously tracking your income and expenses, you can significantly reduce your taxable income. For many rideshare drivers, correctly claiming these expenses can lead to substantial tax savings.
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What Rideshare Driver (Uber etc.)s Can Claim
Vehicle & Travel
Vehicle expenses are by far the largest deduction category for rideshare drivers, covering everything from fuel to servicing. You must keep a logbook for at least 12 continuous weeks to determine your business use percentage.
- Fuel and Oil
The cost of petrol, diesel, or LPG used for your rideshare driving activities. You can only claim the business portion, determined by your logbook.
Receipt required - Registration and Insurance
The business portion of your vehicle's registration fees and comprehensive insurance premiums. Only the portion related to your rideshare work is deductible.
Receipt required - Repairs and Maintenance
Costs associated with maintaining your vehicle, such as servicing, tyre replacement, and general repairs, based on your logbook's business use percentage.
Receipt required - Cleaning and Detailing
Expenses for keeping your vehicle clean and presentable for passengers, such as car washes and detailing, based on your business use percentage.
Receipt required - Loan Interest
If you have a loan for your vehicle, the business portion of the interest paid on that loan is deductible. You'll need statements from your lender.
Receipt required
Phone & Internet
As a rideshare driver, your mobile phone is essential for accepting fares, navigation, and communicating with passengers. You can claim the business portion of your phone and internet expenses.
- Mobile Phone Plan
The business portion of your phone bill, which includes calls, texts, and data used for rideshare operations. Keep a record for a typical 4-week period to determine your business usage percentage.
Receipt required - Mobile Phone Accessories
Costs for items like phone mounts, charging cables, and power banks that are specifically purchased for your rideshare work and cost $300 or less.
Receipt required
Tools & Equipment
Certain equipment directly used for your rideshare business can be claimed, provided it's used for work purposes.
- Dash Cam
The cost of a dash cam used for safety and recording during your rideshare activities, deductible if it costs $300 or less. If over $300, it's depreciated.
Receipt required - First Aid Kit
The cost of a first aid kit kept in your vehicle for passenger and driver safety, fully deductible if used for work.
Receipt required - Umbrella/Rain Gear for Passengers
Costs for items like umbrellas or rain ponchos provided for passenger comfort, deductible as a work expense.
Receipt required
Other Work-Related
This category covers various operational costs essential for your rideshare business that don't fit into other specific categories.
- Rideshare Platform Commissions/Fees
The commissions, service fees, or other charges deducted by the rideshare platform (e.g., Uber, Didi, Ola) from your fares. These are automatically deducted from your earnings statements.
No receipt needed - Bank Fees
Fees charged by your bank for an account used exclusively for your rideshare business, or the business portion of fees for a mixed-use account.
Receipt required - Accounting Fees
The cost of engaging a tax agent or accountant to prepare and lodge your tax return, including advice on your rideshare income and deductions.
Receipt required - Road Tolls and Parking
Tolls paid and parking fees incurred while actively driving for rideshare purposes. You must keep records of these expenses.
Receipt required - Refreshments for Passengers
Small, non-alcoholic refreshments or bottled water provided to passengers can be a deductible expense.
Receipt required
Self-Education
While less common for rideshare drivers, if you undertake any courses or training directly related to improving your rideshare skills or business management, these could be deductible.
- Online Business Courses
Costs for online courses related to small business management, customer service, or safety relevant to your rideshare operations.
Receipt required
Special Situations for Rideshare Driver (Uber etc.)s
GST Registration
As a rideshare driver, you are required to register for GST from your first dollar earned, regardless of whether you reach the $75,000 threshold. This means you must collect GST on your fares and can claim GST credits on your business expenses. You'll need to lodge Business Activity Statements (BAS).
Vehicle Depreciation
If your vehicle cost more than $300, or you're claiming the actual expenses method, you can claim depreciation on the business portion of your vehicle's value over its effective life. This requires specific calculations.
Renting a Vehicle for Rideshare
If you rent a vehicle specifically for rideshare driving, the rental costs (including any associated insurance or maintenance fees included in the rental agreement) are fully deductible for the business use period.
Common Mistakes Rideshare Driver (Uber etc.)s Make
| Mistake | What to do instead |
|---|---|
| Not keeping a logbook for vehicle expenses. | You MUST keep a logbook for at least 12 continuous weeks to determine your business use percentage. Without it, you cannot claim actual vehicle expenses. |
| Claiming 100% of phone bills without calculating business use. | Only the portion of your phone bill directly used for rideshare work is deductible. Keep a record of your calls and data for a typical 4-week period to determine your business usage percentage. |
| Forgetting to register for GST. | Rideshare drivers must register for GST from their first dollar earned. Failure to do so can result in penalties and having to pay back GST you should have collected. |
| Not separating personal and business expenses. | Maintain separate bank accounts or meticulous records to clearly distinguish between personal and business transactions. This simplifies tax time and prevents errors. |
| Claiming personal travel as business travel. | Only travel directly related to picking up passengers, dropping them off, or travelling between fares can be claimed as business travel. Commuting to your first fare or home from your last fare is generally not deductible. |
How AusTax AI Helps Rideshare Driver (Uber etc.)s 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.
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Audit risk score
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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 to be a rideshare driver?
Yes, as an independent contractor, you must have an Australian Business Number (ABN). You'll provide this to the rideshare platform, and it's essential for your tax obligations.
What happens if I don't keep a logbook?
Without a valid logbook, you cannot claim actual vehicle expenses (fuel, repairs, insurance, etc.). You would be limited to using the cents-per-kilometre method, which has a maximum claim of 5,000 business kilometres at 88¢/km for FY2025-26, and only covers running costs, not depreciation.
Can I claim the purchase price of my car?
You cannot claim the entire purchase price of your car in one go. Instead, you claim depreciation on the business portion of its value over its effective life. If the car was purchased for under $20,000 (FY25-26 instant asset write-off threshold), you might be able to claim the full business portion immediately.
Are tolls deductible for rideshare drivers?
Yes, road tolls incurred while performing rideshare duties (e.g., travelling to pick up a passenger, dropping one off, or moving between active fares) are fully deductible. Ensure you keep records of these expenses.
How do I calculate my phone's business use percentage?
Track your phone usage for a continuous 4-week period. Document all calls, data usage, and texts related to your rideshare work versus personal use. This percentage can then be applied to your phone bills for the entire year, provided your usage pattern remains consistent.
Can I claim snacks or drinks for myself while driving?
Generally, no. The cost of food and drink consumed by yourself during your normal working day is considered a private expense and is not deductible, even if you are working away from home.
Quick Checklist
- Obtain an ABN and register for GST immediately.
- Keep a detailed electronic or paper logbook for at least 12 continuous weeks.
- Retain all receipts for fuel, servicing, insurance, and other vehicle expenses.
- Keep a record of your phone usage for a representative 4-week period.
- Track all tolls and parking fees incurred during rideshare duties.
- Keep records of all income received from rideshare platforms.
- Set up a separate bank account for all rideshare income and expenses.
- Track the kilometres driven for business purposes accurately.
- Consider consulting a tax professional familiar with rideshare taxes.
- Lodge your Business Activity Statements (BAS) regularly if registered for GST.
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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.