Uber & Delivery Driver Tax Deductions: 2026 Australian Guide

Driving for Uber, DiDi, Ola, Uber Eats, DoorDash or Menulog means you're running a business in the ATO's eyes. That brings real deductions, but also rules that catch new drivers out, and GST is the big one. This guide covers what rideshare and delivery drivers can claim, the two ways to claim your car, and how GST and BAS work for each type of driving.

Key takeaways: Rideshare drivers need an ABN and GST registration before their first trip, whatever they earn. Food and parcel delivery riders only need GST once turnover reaches $75,000. Cents per km is 88c for 2025–26 and 91c for 2026–27, capped at 5,000 km per car. GST goes on your BAS; your income goes in your annual tax return.

Do Uber and Delivery Drivers Have to Pay Tax?

Yes. Fares, tips and bonuses from rideshare are assessable income, even if driving is a side job (ATO). Delivery income is assessable too. Most drivers are sole traders, so you lodge an individual return with the business and professional items schedule, claim your expenses and pay tax on the profit.

Platforms report what they pay you to the ATO under the Sharing Economy Reporting Regime: rideshare platforms since 1 July 2023, and delivery and other platforms since 1 July 2024. The ATO can match this against your return.

The upside is that being a business means you can deduct the genuine costs of earning that income. For a deeper look at sole trader obligations, see our sole trader tax return guide.

Want a hand? Our accountants for sole traders and rideshare drivers can register you for GST, lodge your BAS each quarter and claim your car costs properly at tax time.

Why Must Rideshare Drivers Register for GST Immediately?

For GST, ride-sourcing counts as taxi travel, so the $75,000 threshold doesn't apply. You must have an ABN and be registered for GST before your first trip, however little you earn (ATO). Penalties and interest can apply if you don't register.

Once registered, you pay 1/11 of the full fare as GST, that is, the fare before the platform takes its fee. You can claim GST credits for the business share of costs like fuel, tolls, platform fees and your car. The credit on a car is capped at 1/11 of the car limit ($6,353 for 2026–27). You report this on a BAS, monthly or quarterly; annual isn't an option.

Important nuance: pure food-delivery work (Menulog, DoorDash, Uber Eats) is not automatically caught by the ride-sourcing rule, so the normal $75,000 threshold can apply if you only deliver food. If you do both, the rideshare rule pulls you in. When in doubt, get advice before you start.

GST and BAS: rideshare vs delivery

The platform usually works out the full fare including GST, and may issue tax invoices for you once you give it your ABN. You're still the one who reports and pays the GST. See when to register for GST and our BAS service.

• Rideshare: GST on every fare, BAS monthly or quarterly, and a tax invoice for fares over $82.50 if a passenger asks.
• Delivery only, under $75,000: no GST, so no GST on a BAS and no GST credits.
• Both, same ABN: GST applies to all your business income.

How Do You Claim Car Expenses: Cents Per KM or Logbook?

Sole traders can use one of two methods for each car. Cents per kilometre is 88c per business kilometre for 2025–26 and 91c for 2026–27, capped at 5,000 km per car, so the maximum is $4,400 or $4,550 (ATO). The rate covers all running costs and depreciation.

The logbook method often suits drivers who travel well over 5,000 business km. You keep a logbook for at least 12 continuous weeks to set your business-use percentage, then claim that share of fuel, insurance, registration, servicing, repairs, loan interest and depreciation. A logbook stays valid for 5 years. Business kilometres start when you accept a job, or when you head out only to find work; having the app on during your commute doesn't count.

Use one method per car each year; you can change methods the next year. Our free vehicle logbook template follows the ATO's requirements.

What Else Can Rideshare and Delivery Drivers Claim?

Beyond the car itself, a range of running costs are deductible to the extent they relate to your driving in 2026. Many drivers under-claim here because the amounts feel small — but they add up across a year of shifts.

• Platform fees and commissions
• Mobile phone and data: the work-related share
• Phone mount, charger and dash cam
• Tolls (if the passenger didn't pay) and parking while working
• Water, mints, tissues, wipes and sanitiser for passengers
• Driver accreditation, police checks and medical tests
• Car cleaning: logbook method only, as it's a car running cost
• Bank fees on a business account and tax agent fees

What you can't claim: your private driver licence, speeding or parking fines, meals on breaks, and private use of the car. Small businesses can instantly write off assets costing under $20,000, such as a phone or dash cam.

Keep every receipt. The ATO can ask you to substantiate the business-use percentage of any shared item like your phone or car.

How Should Drivers Keep Records in 2026?

Rideshare drivers are GST-registered, so you need records all year, not just at tax time. Keep your platform statements, receipts for every expense you claim, and your logbook with odometer readings.

A dedicated bank account helps. The free myDeductions tool in the ATO app can record income, receipts and trips, and share them with your tax agent. Keep records for 5 years after you lodge. A tax agent's fee is deductible.

Plan for your tax bill and super

No tax is withheld from driving income, so a bill can arrive at tax time. You can make voluntary prepayments or join PAYG instalments. No one pays super for you, but you can make your own contributions; ask us whether a personal contribution is deductible for you. See our sole trader tax return guide.

Drive for Uber, DiDi or a delivery app? Australia Wide Tax Solutions can handle your ABN and GST registration, BAS and annual return. We're a registered tax agent (TPB 78641007) in Chippendale, Sydney. Book an appointment.