If you drive for Uber, Ola, DiDi, DoorDash, Deliveroo, or any other rideshare or food delivery platform in Australia, the answer is simple: yes, you must declare every dollar you earn to the ATO. There is no minimum threshold, no grace period, and no exemption for part-time drivers.
The good news is that declaring your income is straightforward, and there are legitimate deductions that can significantly reduce what you owe. Here's everything you need to know.
GST: The Rule That Catches Most Uber Drivers Off Guard
Here is where rideshare is different from most other side hustles: Uber drivers must register for GST from their very first trip, regardless of how much they earn. The normal $75,000 GST threshold does not apply to rideshare drivers.
This is because the ATO classifies rideshare as a taxi travel service. Under Australian tax law, taxi travel has always required GST registration from day one โ and Uber falls into this category.
What GST Registration Means in Practice
- You must register for an ABN and GST at abr.gov.au before your first trip
- Uber collects GST from passengers on your behalf and remits it to the ATO
- You lodge a quarterly Business Activity Statement (BAS) with the ATO
- You can claim GST credits on business expenses (fuel, car servicing, etc.)
What Income Do I Need to Declare?
You must declare your gross income โ the total amount Uber or the platform pays you before any fees, service charges, or deductions are taken out. Do not just declare what lands in your bank account.
Your annual income summary from the Uber driver app or DoorDash Dasher portal shows your gross earnings. This is the figure that goes into your tax return.
What Can I Claim as a Deduction?
This is where you can meaningfully reduce your tax bill. As a rideshare or delivery driver, you can claim deductions for expenses that are directly related to earning your income.
| Expense | Deductible? | Notes |
|---|---|---|
| Fuel costs | โ Yes | Business proportion only โ keep a logbook |
| Car servicing & repairs | โ Yes | Business proportion only |
| Car insurance | โ Yes | Business proportion only |
| Car depreciation | โ Yes | Requires logbook or cents-per-km method |
| Phone (work use) | โ Yes | Percentage of use for driving/navigation |
| Platform fees & commissions | โ Yes | Uber's service fee is deductible |
| Toll charges | โ Yes | Only tolls incurred during trips |
| Car wash & cleaning | โ Yes | Reasonable amounts, receipts required |
| Accountant fees | โ Yes | 100% deductible |
| Personal driving | โ No | Private use cannot be claimed |
| Traffic fines | โ No | Never deductible |
The Logbook Method vs Cents Per Kilometre
For vehicle expenses you have two options:
- Logbook method: Keep a 12-week logbook recording every trip (personal and business). Calculate the business percentage and apply it to all car costs. More work, but usually gives a higher deduction.
- Cents per kilometre: Claim 88 cents per business kilometre (2025โ26 rate), up to 5,000km per year. No logbook needed, but capped and may give a smaller deduction for high-mileage drivers.
How Does Uber Income Affect My Tax Return?
Your Uber profit (revenue minus deductions) is added to any other income you earn โ including your salary if you have a day job. This combined income is then taxed at your marginal rate.
If you also have a day job, your employer already withholds PAYG tax assuming your salary is your only income. Uber income sits on top of that, taxed at your highest marginal rate โ often 32โ47%.
This means every $100 of Uber profit could cost you $32โ$47 in tax, depending on your total income. Knowing this in advance lets you set aside the right amount throughout the year rather than facing a surprise bill in July.
Find Out Exactly What You Owe
Use our free calculator to see how much extra tax your Uber or delivery income will add to your tax bill โ including GST flags and quarterly payment estimates.
Calculate My Tax โKey Dates to Remember
- 31 October: Individual tax return due (if lodging yourself)
- May following year: Extended deadline if using a registered tax agent
- Quarterly BAS lodgement: 28 October, 28 February, 28 April, 28 July
Quick Summary
| Question | Answer |
|---|---|
| Must I declare Uber income? | โ Yes โ all of it, every year |
| Do I need an ABN? | โ Yes โ register before your first trip |
| Do I need to register for GST? | โ Yes โ rideshare drivers from day one |
| What about food delivery only? | Only once revenue hits $75,000/year |
| Can I claim car expenses? | โ Yes โ business proportion with logbook |
| When is tax due? | 31 October or May if using a tax agent |
This article is for general informational purposes only and does not constitute tax or financial advice. Tax rules change regularly โ always verify with the ATO or a registered tax agent for advice specific to your situation.