Driving for Uber, DiDi, Menulog or DoorDash turns your car into a business — and the ATO treats it that way. That means real deductions, but also some rules that catch new drivers out (GST being the big one). This guide covers exactly what rideshare and delivery drivers can claim on tax in 2026, the two ways to claim your car, and the mistakes that trigger ATO attention.
Key Takeaways
- Rideshare drivers must register for GST from their first dollar — the $75,000 threshold does not apply to ride-sourcing (ATO, 2026).
- You can claim car costs two ways: cents per kilometre (88c/km, capped at 5,000km = $4,400) or the logbook method — the logbook usually wins for drivers.
- Your income and GST are reported on a Business Activity Statement (BAS), not just your annual return.
Do Uber and Delivery Drivers Have to Pay Tax?
Yes. In 2026, all income you earn from rideshare and food delivery is assessable and must be declared in your tax return, even if it's a side gig (ATO, 2026). You're treated as a sole trader running a business, so you report your earnings, claim your expenses, and pay tax on the profit.
The platforms report your earnings to the ATO directly through the data-matching program. So "they'll never know" isn't a strategy — undeclared rideshare income is one of the easiest things for the ATO to spot.
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.
Why Must Rideshare Drivers Register for GST Immediately?
Ride-sourcing is the one industry where the $75,000 GST threshold doesn't apply — drivers must register for GST regardless of how little they earn (ATO, 2026). This is the single most common mistake new Uber and DiDi drivers make.
Once registered, you remit 1/11th of your fares as GST, but you can also claim GST credits on your business expenses — including the GST portion of fuel, repairs, and your car purchase. You lodge this through a BAS, usually quarterly.
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.
How Do You Claim Car Expenses: Cents Per KM or Logbook?
There are two methods, and for drivers the choice is worth thousands. The cents-per-kilometre method pays 88 cents per business kilometre in 2025–26, but it's capped at 5,000km — a maximum of $4,400 per car (ATO, 2026). Full-time drivers blow past 5,000km in weeks.
That's why the logbook method usually wins for rideshare and delivery work. You keep a 12-week logbook to establish your business-use percentage, then claim that percentage of all running costs: fuel, insurance, registration, servicing, repairs, interest on a car loan, and depreciation. Drive 20,000+ business kilometres a year and the logbook can be far more valuable than the $4,400 cap.
You can't use both methods on the same car in the same year. See our guides on the car logbook and motor vehicle expenses.
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 — Uber/DiDi service fees, booking fees
- Mobile phone and data — the work-related percentage
- Phone mount, charger, and dash cam
- Tolls and parking incurred while working
- Car cleaning and detailing
- Water, mints and amenities provided to passengers
- Bank fees on a dedicated business account and accounting fees
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?
Good records are what separate a smooth return from a denied claim. Because you're a GST-registered business, you need to track income and expenses all year, not reconstruct them in October. The drivers who get audited and lose are almost always the ones without a logbook or receipts.
Set up a simple system from day one: a dedicated bank account for driving, a logbook app, and a folder (digital is fine) for receipts. Keep records for five years. If that sounds like a lot alongside driving, a tax agent who knows the gig economy can take it off your hands — and the fee is itself deductible.
Drive for Uber, DiDi or a delivery app? Australia Wide Tax Solutions handles GST registration, BAS, and your annual return so you claim every kilometre and stay ATO-compliant. We lodge over 10,000 returns a year and are registered with the Tax Practitioners Board. Book an appointment or lodge online.
Frequently Asked Questions
Do I have to register for GST if I only drive part-time for Uber?
Yes. For ride-sourcing, the ATO requires GST registration from your first dollar of fares, regardless of how few hours you drive (ATO, 2026). The usual $75,000 threshold does not apply to rideshare drivers.
Is the logbook or cents-per-km method better for Uber drivers?
For most drivers, the logbook method wins. Cents per kilometre is capped at 5,000km (a maximum $4,400 at 88c/km in 2025–26), and full-time drivers exceed that quickly. The logbook lets you claim your business-use share of all running costs and depreciation (ATO, 2026).
Can I claim my car if I bought it on finance?
Yes. Under the logbook method you can claim the business-use percentage of the loan interest plus depreciation of the car's value (the principal repayment itself isn't deductible). Receipts and a valid 12-week logbook are required to support the claim.
Do food delivery drivers need to register for GST?
Not always. Pure food delivery (Uber Eats, Menulog, DoorDash) isn't automatically caught by the ride-sourcing rule, so the $75,000 GST threshold can apply. But if you also do rideshare, you must register for GST on all your driving income.
Sources
- Australian Taxation Office, GST for driving services, retrieved 2026-06-22, https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/gst-for-driving-services
- Australian Taxation Office, Cents per kilometre method, retrieved 2026-06-22, https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions/deductions-for-motor-vehicle-expenses/cents-per-kilometre-method
