Uber Driver Tax Australia: Everything You Need to Know
Australia’s tax rules for Uber drivers are stricter than for almost any other type of self-employment. You must register for GST from your very first trip, lodge a quarterly BAS (Business Activity Statement) with the ATO, and declare every dollar you earn as business income. None of that changes based on how many hours you drive or how much you make.
Earnings estimates in this article are based on ATO guidance and publicly available driver reports. Tax rules change — always verify current rates at ato.gov.au and speak with a registered tax agent for advice specific to your situation.
Why Uber Drivers Have Different Tax Rules
Most small businesses don’t need to register for GST until their annual turnover exceeds $75,000. Rideshare is the exception.
Under the ATO’s taxi travel provisions — which cover ride-sourcing platforms like Uber, DiDi, and Ola — GST registration is compulsory from the moment you complete your first trip, regardless of how little you earn. You could drive Uber twice a week as a hobby and still need to register, charge GST on your fares, and lodge quarterly BAS returns.
The ATO extended this rule to app-based rideshare in 2017 and has been actively data-matching driver income against Uber’s records since the Sharing Economy Reporting Regime (SERR) came into effect on 1 July 2023. Platforms are now legally required to report all driver earnings directly to the ATO. If you haven’t registered, they will find out.
Food delivery drivers on platforms like Uber Eats, DoorDash, and Menulog fall under different rules — GST registration is not automatically mandatory for them. But if you do both rideshare and food delivery, the rideshare obligation applies to your whole setup.
The Three Things You Must Set Up Before Driving
ABN (Australian Business Number). All rideshare drivers in Australia operate as sole traders. Registration is free and takes about 15 minutes at abr.gov.au — your ABN is issued instantly in most cases. Uber won’t activate your driver account without one.
GST registration. Once you have your ABN, register for GST through business.gov.au or through your myGov account. This is separate from getting an ABN, but can be done at the same time. Registration is free.
A record-keeping system. From day one, you need to track your business kilometres and keep receipts for expenses. A mileage tracking app makes this significantly easier — the ATO requires you to be able to justify any deductions you claim.
Lodging Your BAS Each Quarter
A BAS is a quarterly report to the ATO that shows your GST collected on fares and the GST credits you can claim back on business expenses.
The four quarterly periods and their due dates:
| Quarter | Period | BAS Due |
|---|---|---|
| Q1 | 1 July – 30 September | 28 October |
| Q2 | 1 October – 31 December | 28 February |
| Q3 | 1 January – 31 March | 28 April |
| Q4 | 1 April – 30 June | 28 July |
Uber does not lodge your BAS for you. You’re responsible for doing this yourself, through a registered tax agent, or via accounting software linked to the ATO.
A simple reality check on the maths: GST is 10% of the sale price, but because it’s already included in Uber’s fares, it works out to roughly 1/11th of your gross earnings. On $1,000 in gross fares, you owe the ATO approximately $91 in GST — before claiming any credits back on your expenses.
What You Can Claim as a Tax Deduction
Every legitimate business expense reduces your taxable income. The key deductible items for Uber drivers:
| Deductible Item | Condition |
|---|---|
| Fuel | Business use only — track kilometres |
| Vehicle depreciation | Business use proportion |
| Rideshare insurance premium (business portion) | Business use proportion |
| Mobile phone and data | Business use proportion |
| Dashcam, phone mount, USB charger | Business use proportion |
| Water, mints, hand sanitiser for passengers | Fully deductible |
| Uber service fees paid | Fully deductible |
| Accounting software or tax agent fees | Fully deductible |
| Tolls and parking (during a trip) | Fully deductible |
For your vehicle, you can choose between two ATO-approved methods:
Cents per kilometre — claim a fixed rate per business kilometre (the ATO updates this annually — check ato.gov.au for the current rate). Maximum 5,000 km per year. Best for part-time drivers with lower annual mileage.
Logbook method — keep a 12-week logbook recording all trips (business and personal), calculate your business use percentage, then claim that percentage of all vehicle costs. Valid for five years if your usage doesn’t change significantly. Best for full-time drivers or anyone covering high annual kilometres.
Your Annual Tax Return
Uber driver income goes on your individual tax return as business income. The Australian financial year runs from 1 July to 30 June, and returns are due by 31 October (or later if you use a registered tax agent).
You pay income tax on your profit — gross earnings minus legitimate deductions — at your marginal tax rate. The tax-free threshold is currently $18,200, but verify the current figure at ato.gov.au before relying on it, as this changes in line with annual federal budgets.
One thing most new drivers miss: you don’t receive employer superannuation contributions as a sole trader. If you want retirement savings, you need to make voluntary super contributions yourself. These can be claimed as a tax deduction, which is one of the more useful tax strategies available to full-time drivers.
Practical Tips for Staying on Top of Your Tax
- Install a mileage tracking app before your first trip. Retroactively reconstructing kilometres from memory won’t satisfy the ATO. Driversnote and similar apps record trips automatically using GPS.
- Set aside 11% of every payment Uber makes into a separate account. This covers your GST obligation with a small buffer. Do it from day one — GST debt accumulates fast.
- Keep your BAS dates in your calendar. Missing a BAS lodgement triggers ATO penalty interest. Set a reminder for the 15th of each quarter month so you have two weeks to prepare.
- Register for GST and get your ABN before your first trip — not after. Driving before you’re registered creates a compliance headache.
- Use a registered tax agent for your first year. Their fee is tax deductible, and they’ll spot deductions you’ve missed. Find one at tpb.gov.au.
- Keep digital copies of every receipt. The ATO can audit up to five years back. A simple folder in your phone’s photos app is enough.
Frequently Asked Questions
Do I need to register for GST if I only drive Uber part-time on weekends?
Yes. Part-time or casual rideshare drivers must register for GST from their very first trip, just like full-time drivers. There is no income threshold that exempts you — the ATO’s taxi travel rule applies regardless of how many hours you drive.
What happens if I don’t register for GST as an Uber driver?
The ATO receives income data directly from Uber through the Sharing Economy Reporting Regime. If your income is reported but you haven’t lodged a BAS, the ATO will typically issue a default assessment — which means they calculate what you owe, add penalties, and charge interest from the original due date. Voluntary disclosure before they contact you results in lower penalties.
Can I claim the full cost of my car as a deduction?
No. You can only claim the business-use proportion of your vehicle costs. If you use your car 60% for Uber and 40% for personal travel, you can claim 60% of fuel, depreciation, insurance, and other running costs. The logbook method is the only way to establish and substantiate that percentage.
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This article is general information only and does not constitute tax or financial advice. Tax rules for rideshare drivers can change, and your individual circumstances will vary. We recommend speaking with a registered tax agent who understands the gig economy before making any tax decisions. Find one at tpb.gov.au.
Last reviewed: 01/09/2026
