Driving for Uber, DiDi, Bolt, Ola, DoorDash, Uber Eats, Menulog or Deliveroo is one of the easiest ways to start earning in Australia. The tax side, however, surprises almost every new driver. You are not an employee - you are a sole trader running a small business, and the ATO expects you to act like one from your first trip.
This guide walks through every step you need for the 2025-26 financial year: registering an ABN, the special GST rule that catches rideshare drivers off guard, choosing between cents-per-km and logbook, and what to claim at tax time. There is a worked example with real numbers and a checklist you can use before you lodge.
You Are a Sole Trader, Not an Employee
Uber, DiDi, DoorDash and the rest are platforms - not your employer. No PAYG is withheld, no super is paid for you, and you must report 100% of platform earnings as business income. You handle your own GST, BAS and tax return.
The ATO receives data from every major rideshare and delivery platform. Every fare and payout is matched to your TFN. "Forgetting" to report is not an option.
Step 1: Get an ABN (Free, 10 Minutes)
An Australian Business Number (ABN) is mandatory for all rideshare and delivery drivers regardless of hours. Apply free at abr.gov.au with your TFN, residential address, and a short activity description ("ride-sourcing services" or "food delivery services"). Most ABNs issue instantly; manual review takes 1-3 weeks. Uber and DiDi will not pay out without an ABN on file.
Step 2: The Rideshare GST Trap
This is where most new drivers get caught. For ordinary small businesses, GST registration is only required once turnover exceeds $75,000 per year. But there is a critical exception:
If you supply taxi travel or ride-sourcing services for a fare, you must register for GST regardless of your turnover. - Australian Taxation Office
This applies to Uber, DiDi, Bolt, Ola and any other passenger transport platform. It does not apply to pure food delivery (Uber Eats, DoorDash, Deliveroo, Menulog) - those follow the standard $75,000 threshold.
| Platform mix | GST registration |
|---|---|
| Uber rides only | Required from day 1 |
| Uber Eats only, under $75k | Not required |
| Uber rides + Uber Eats | Required from day 1 (rideshare rule wins) |
| DoorDash only, under $75k | Not required |
| DoorDash + occasional Uber rides | Required from day 1 |
Register for GST at the same time as your ABN - it is one form. Once registered, you must:
Step 3: Vehicle Deductions - Cents-per-Km vs Logbook
Your car is your single biggest deduction. The ATO offers two methods, and choosing the right one can be worth thousands.
Method 1: Cents-per-Kilometre
- FY2025-26 rate: $0.88/km
- Capped at 5,000 business km per car per year
- Maximum claim: 5,000 x $0.88 = $4,400
- No logbook needed, but keep a reasonable record (diary or app log)
- Covers all running costs, depreciation and registration in one rate
Method 2: Logbook
- Keep a representative 12-week logbook showing every business and personal trip
- The resulting business-use percentage is valid for 5 years
- Claim that percentage of all actual car costs: fuel, registration, insurance, servicing, repairs, tyres, car-loan interest, depreciation
- Depreciation is capped at the car cost limit ($69,674 for FY2024-25 - confirm the FY2025-26 figure on ato.gov.au before lodging)
| Annual business km | Likely better method |
|---|---|
| Under 5,000 km | Cents-per-km (simpler) |
| 5,000-10,000 km | Logbook (you are losing money at the 5,000 cap) |
| 10,000+ km | Logbook (almost always significantly better) |
Most full-time rideshare drivers do 20,000-40,000 business km per year, where the logbook method produces $10,000-$20,000 in deductions vs the $4,400 cents-per-km ceiling.
Tip: Start your logbook on a Monday in a typical 12-week period. Avoid school holidays or any unusual weeks - a clean logbook that holds up under audit is worth thousands.
Step 4: Other Deductions for Drivers
Beyond the car, the ATO expects rideshare and delivery drivers to claim:
- Platform service fees - Uber takes around 27.5% (already netted out of payouts, but verify on your annual tax summary)
- Mobile phone - work-use percentage of your bill plus the phone itself (depreciated if over $300)
- Internet at home - work-use percentage if you do any admin from home
- Car cleaning, valet and detailing
- Water, mints, tissues for passengers (rideshare only)
- Rideshare insurance extension on your personal car policy
- Tolls and parking for work trips
- Dashcam (depreciated if over $300)
- Bicycle or e-bike depreciation for delivery riders on a bike
- Voluntary super contributions - deductible up to the $30,000 concessional cap
Do not double-claim registration, repairs, fuel or carwash if you use the logbook method.
Step 5: Worked Example - $50,000 Uber Driver
Sam drives Uber full-time, earning $50,000 in fares in FY2025-26. Sam's car had $14,000 actual running costs at 70% business use (12-week logbook). Phone $1,200 at 50%, plus $1,500 in insurance, cleaning, mints and water.
| Item | Amount |
|---|---|
| Fares (gross, GST inclusive) | $50,000 |
| Less Uber service fee 27.5% (already deducted) | -$13,750 |
| Less GST remitted to ATO (1/11 of fares) | -$4,545 |
| Net income before deductions | $31,705 |
| Vehicle deduction ($14,000 x 70%) | -$9,800 |
| Phone deduction ($1,200 x 50%) | -$600 |
| Insurance + cleaning + supplies | -$1,500 |
| Taxable income from rideshare | $19,805 |
If Sam has no other income, the FY2025-26 tax-free threshold ($18,200) wipes out almost all tax. With another job paying $40,000 PAYG, that $19,805 stacks on top - so deductions are the difference between a $4,000 refund and a $4,000 bill.
Step 6: BAS Quarterly at a Glance
If you are GST-registered, you lodge a Business Activity Statement every quarter:
| Quarter | Period | Lodge by |
|---|---|---|
| Q1 | 1 Jul - 30 Sep | 28 Oct |
| Q2 | 1 Oct - 31 Dec | 28 Feb |
| Q3 | 1 Jan - 31 Mar | 28 Apr |
| Q4 | 1 Apr - 30 Jun | 28 Jul |
Report total fares (G1), GST collected (1A = 1/11 of G1), GST credits on business purchases (1B), and net GST payable. Most drivers owe a few hundred to a few thousand per quarter. Set aside 10% of every payout so you are never caught short.
Common Mistakes That Cost Drivers Thousands
- Claiming personal trips - the school run is not deductible even with the Uber driver app on
- Patchy logbook - the 12 weeks must be consecutive and representative; cherry-picked weeks fail audit
- Ignoring the $0 GST trap - any rideshare turn on triggers GST on everything
- Skipping super - you have no employer super; voluntary contributions are deductible
Multi-Platform and E-Bike Delivery
If you bounce between Uber, DiDi and DoorDash in a shift, the numbers must combine. One ABN, one GST registration, one tax return. Track per shift: date, platform, gross earnings, platform fee, tips, km, expenses. The ATO matches each platform to your TFN separately - any mismatch is the fastest route to a desk audit.
If you deliver only on a bicycle or e-bike, no cents-per-km applies (bikes are not a "car"). Depreciate the bike over 5 years and claim repairs, tyres, helmet, hi-vis gear and phone mount. No GST registration unless you exceed $75,000 - the rideshare $0 trigger does not apply when you are not transporting passengers.
Practical Checklist Before You Lodge
- ABN active with correct activity description
- GST registered if you do any passenger transport
- All four BAS lodged with payments made
- Annual tax summary downloaded from each platform
- 12-week logbook complete (or kms recorded for cents-per-km)
- Receipts kept: fuel, repairs, insurance, phone, cleaning, supplies
- Phone work-use percentage documented
- Voluntary super intent-to-claim notice lodged with your fund
- Figures match your platform tax summaries to the dollar
Summary
Rideshare and delivery driving has a steeper tax learning curve than almost any other gig in Australia. Get the ABN, GST registration and logbook right in your first three months and the rest of the year takes care of itself.
If you want a head start on collecting receipts, classifying every expense correctly, and building an audit-ready record without spreadsheets, AusTax AI does exactly that. Snap a receipt and the AI matches it against ATO rules for your driver profile - including the rideshare-specific deductions covered above. Free forever for unlimited uploads and analysis.
Need Help With Your Tax Return?
Complex return, or want a registered agent to handle it? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*