Driving for Uber or delivering for DoorDash is a flexible way to earn extra income. The tax side is also manageable — but there's one critical rule most new drivers don't know about, and getting it wrong creates a liability problem from day one.

This guide covers the GST registration rules for rideshare vs delivery, what you can claim, how to track your income, and what the ATO already knows about your earnings.

Quick answer: Rideshare drivers (Uber, Ola, Didi) must have an ABN and be registered for GST from the day they start driving, regardless of how much they earn — the $75,000 threshold does not apply. Food delivery isn't ride-sourcing, so the day-one rule doesn't apply. The general GST registration rules apply instead (see below). Once registered, you lodge a BAS monthly or quarterly. Platforms report your income to the ATO under the Sharing Economy Reporting Regime.

This is general information, not tax advice — see your registered tax agent for your specific situation.

Source: ato.gov.au — Ride-sourcing services and your tax obligations

The Critical Distinction: Rideshare vs Delivery

This is the single most important thing to understand, and the ATO is explicit about it.

Rideshare (Uber, Ola, Didi, others): GST from Dollar One

If you provide ride-sourcing services — transporting passengers for a fare — you are treated the same as a taxi driver under Australian tax law. The $75,000 GST threshold does not apply.

You must:

  1. Have an ABN before you start driving
  2. Register for GST before you accept your first fare
  3. Charge GST on every fare (the platforms handle this calculation, but you're the registered entity)
  4. Lodge a BAS monthly or quarterly (annual reporting isn't available for ride-sourcing)

There is no grace period: registration is required from the day you start. If you drove before registering, register now and ask a registered tax or BAS agent about backdating your registration. The ATO says penalties and interest may apply if you don't register.

Food Delivery (DoorDash, Menulog, Uber Eats delivery): Standard $75k Threshold

Delivering food isn't passenger transport, so the ride-sourcing (taxi travel) rule doesn't apply. The general GST registration rules apply:

  • If your delivery earnings (plus any other business income) are under $75,000 per year, registration is optional
  • You must register within 21 days once your GST turnover (current or projected over 12 months) reaches $75,000 or more
  • If you're already registered for GST because of ridesharing, all your income — including food delivery — falls under that registration

If You Do Both

If you drive for Uber (GST registration mandatory from day one) and also deliver for DoorDash, you're registered for GST already. All your self-employment income gets reported on your BAS — rideshare and delivery combined.

Step 1: Get Your ABN

You cannot work for any of these platforms without an ABN. If you don't have one, apply through the Australian Business Register.

Step 2: Register for GST (Rideshare: Do This First)

For rideshare drivers, register for GST before you start driving. Once you have an ABN, you can register for GST through Online services for business, by phoning the ATO's business enquiries line, or through a registered tax or BAS agent.

For delivery-only drivers below the $75,000 threshold, voluntary registration is an option worth considering if your expenses (car, equipment, phone) generate meaningful input tax credits.

What the Platforms Report to the ATO

This is not optional information — it's important you understand it before you consider not declaring income.

Digital platforms report the income their drivers and delivery workers earn to the ATO twice a year under the Sharing Economy Reporting Regime — ride-sourcing since 1 July 2023, and other platform work (including food delivery) since 1 July 2024. The ATO's data-matching program processes this information and cross-references it with lodged tax returns and BAS.

If you earned $18,000 from Uber last year and declared $11,000, the ATO may raise a query. Platforms typically provide annual income summaries to drivers — check your platform's driver portal for your earnings history.

Tracking Your Income

Platform Income Summaries

Each platform provides an income summary — usually accessible through the driver portal or app. These summaries show:

  • Total earnings for the period
  • Any fees or commissions the platform deducted
  • Sometimes GST amounts already built in

Important: The amount deposited into your bank account is your income minus the platform's service fee. GST is calculated on the full fare the passenger pays (including the platform's commission), not the net amount paid into your account. If the platform's fee includes GST, you may be able to claim a GST credit for it.

Keeping Your Own Records

Don't rely solely on platform summaries. Keep:

  • Weekly screenshots or downloads of your earnings dashboard
  • Your own running total of km driven (for car expense claims)
  • Records of all business expenses

Key Deductions for Rideshare and Delivery Drivers

These are the main expense categories. Most require receipts or documentation.

Car Expenses (Your Biggest Deduction)

For rideshare, your car is a work tool. The cents per kilometre method caps you at 5,000 business kilometres per car per year, so if you drive a lot for rideshare, the logbook method (a continuous logbook of at least 12 weeks, valid for 5 years) often suits better. Use the ATO's car expenses calculator to compare.

If you drive 30,000 km per year and 22,000 km are for rideshare and business purposes, that's a 73% business use. Apply that to your full annual car costs.

See our car expenses guide for a detailed comparison of the two methods.

Phone and Mobile Data

Your phone is essential for navigation and platform apps. A reasonable business-use proportion of your monthly phone plan and data is deductible. Keep a record to support the proportion you claim.

Phone Mount and Car Accessories

Phone mounts, dashcams, seat covers and cleaning supplies used for your rideshare work are generally deductible to the extent they relate to your driving. If you use the cents per kilometre method, car running costs are already covered by the rate. Keep the receipts.

Platform Fees and Commissions

The service fee the platform takes from each fare is a deductible business expense. It's usually visible in your platform income summary.

Car Cleaning

Keeping your car clean for passengers is deductible to the extent it relates to your ride-sourcing (if you use the logbook method, apply your business-use percentage; under cents per km, car running costs are already in the rate). Keep receipts for car washes and detailing.

Parking and Tolls (for work trips)

Parking fees on work trips, and tolls the passenger didn't pay for, are deductible. The cents per km rate covers running costs and depreciation (registration, fuel, servicing, insurance), so parking and tolls are claimed separately.

Income Protection Insurance

If you take out income protection insurance as a driver (your income depends on your ability to work), the premiums for cover that replaces your income are generally deductible. You can't claim them if the policy is held through your super fund, and you can't claim the life, trauma or injury components of a bundled policy.

BAS: What You Report Each Quarter

Once GST-registered, you lodge a BAS monthly or quarterly (most small drivers are quarterly). Here's what you're reporting:

GST collected: The GST component of your total fares. If your total rideshare earnings (including the platform fee) were $9,900 for the quarter, the GST component is $9,900 / 11 = $900.

Input tax credits: The GST you paid on business expenses — fuel, car servicing, phone, insurance. Divide the business-use portion of GST-inclusive expenses (where the supplier charged GST) by 11. You can't claim GST credits for personal use.

Net GST: Collected minus credits. This is what you pay (or get back).

Your PAYG instalment may also appear on your BAS if the ATO has enrolled you based on your prior year income tax liability.

Real Example: Alex's Numbers

Alex drives for Uber 20 hours a week and delivers for DoorDash on weekends.

  • Monthly earnings: $1,800 from Uber rides + $600 from DoorDash deliveries = $2,400/month
  • Annual total: approximately $28,800

Because he's doing rideshare, Alex was required to register for GST from day one — even though $28,800 is well under the $75,000 threshold.

Quarterly BAS workings:

Uber quarterly earnings (full fares including the platform fee — more than the $5,400 actually paid into his account): ~$6,000 DoorDash quarterly earnings: ~$1,800 Total: $7,800

GST collected: $7,800 / 11 = $709

Business expenses (fuel, car maintenance, phone, cleaning) for the quarter: $2,750 GST-inclusive Input tax credits: $2,750 / 11 = $250

Net GST to pay: $709 - $250 = $459 per quarter

Income tax: Alex's total annual net income from driving (after expenses) is also assessable income for income tax purposes. He adds this to any other taxable income for his annual tax return.

If Alex's latest tax return shows instalment income of $4,000 or more, his latest notice of assessment shows tax payable of $1,000 or more, and his estimated (notional) tax is $500 or more, the ATO will automatically enter him into PAYG instalments so he pre-pays that tax quarterly through his BAS. See our PAYG instalments guide for full thresholds.

Income Tax on Top of GST

GST and income tax are separate. GST collected and remitted is not your income — it passes through. Your actual assessable income is:

Revenue (total fares/deliveries) minus expenses = Taxable income

That taxable income is added to any other income you earn (part-time job, rental income, etc.) and taxed at your marginal rate.

Because no tax is withheld from platform income, set aside part of your net earnings throughout the year for income tax, in addition to the GST you're holding for your BAS. The ATO's guide to preparing for a potential tax bill explains your options. The right percentage depends on your total taxable income and other deductions — your registered tax agent can model the right number for your specific situation.

This is general information, not tax advice. Rideshare and delivery tax rules — including GST registration, expense claims and PAYG instalments — depend on your specific circumstances and the platforms you drive for. Platform GST treatment can also change. Speak to a registered tax or BAS agent before relying on this article, and verify current ATO guidance at ato.gov.au.

Tools That Make This Easier

Tracking platform income, car expenses and quarterly GST manually is manageable when you're starting out but gets messy as your earnings grow. Keeping it all in one place means BAS time is a 20-minute job, not a two-day scramble.

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FAQ

Q: I just signed up to Uber. Do I need to register for GST before my first trip?

A: Yes. The ATO requires you to be registered for GST from the day you start ride-sourcing. Register through Online services for business, by phone, or through a registered tax or BAS agent. Then complete your Uber onboarding with your ABN.

Q: Does Uber register me for GST automatically?

A: No. GST registration is your responsibility, not the platform's. The platform usually calculates the GST-inclusive fare, but reporting and paying that GST on your BAS is your obligation.

Q: I drove for Uber for 3 months before I knew about the GST rule. What should I do?

A: Register immediately, then talk to a registered tax agent about how to handle the back period. Self-reporting is treated more favourably than being discovered. The ATO has disclosure processes for this.

Q: Can I claim the car I bought specifically for rideshare?

A: Yes. Under the logbook method, you claim the business-use proportion of all car costs including depreciation (decline in value). A car bought purely for rideshare would have a very high business use percentage.

Q: Are tips from passengers assessable income?

A: Yes. Tips received in the course of your business are assessable income, and the GST treatment depends on how they're collected and whether they're compulsory or voluntary. Whether GST applies to a tip depends on how it's paid, so ask your registered tax or BAS agent.

Q: What if I earn below $18,200 total income from driving — do I still need to lodge a tax return?

A: If you're GST-registered, you still need to lodge BAS regardless of income level. For income tax, even if your income is below the tax-free threshold, you still need to lodge a tax return. The ATO says ride-sourcing drivers are operating a business and must lodge a return, including the business and professional items schedule, regardless of how much they earn.

Q: I'm on a visa. Does this change my tax obligations?

A: Your tax obligations depend on whether you're a tax resident of Australia, not your visa status. If you're unsure, check the ATO's residency rules or speak to a tax agent.

Q: Do I need a separate ABN for rideshare and delivery?

A: No. One ABN covers all your sole trader activities. You report all earnings across both activities in the same BAS and tax return.