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Uber and rideshare driver tax in Australia: what the ATO says

Driving for Uber, DiDi, Ola or another rideshare platform is a popular way to earn extra money in Australia. It also comes with tax rules that catch many new drivers out, especially around GST. This page sets out what the Australian Taxation Office (ATO) says about ride-sourcing: ABNs, GST registration, BAS, record keeping and car expenses, with a link to the official page for every point. It is general information, not tax advice, so check the ATO pages or a registered tax agent for your situation.

What counts as ride-sourcing?

The ATO describes ride-sourcing as an ongoing arrangement where a driver uses a car to transport passengers for a fare, and the passenger uses a third-party digital platform, such as a website or an app, to request the ride (ATO ride-sourcing page). For GST purposes, the ATO treats ride-sourcing as taxi travel (ATO registrations page). This matters because taxi travel has special GST rules. The rules on this page are about carrying passengers for a fare. If you deliver food or parcels through an app instead, check the ATO's sharing economy and tax page for the rules that apply to that work.

ABN and GST registration

According to the ATO:

• You need an Australian business number (ABN) and must be registered for GST before you start your first trip, regardless of how much you earn. The ATO suggests describing your business activity as "taxi ride sourcing" when you apply.
• If you already have an ABN for another business, you need to register for GST within 21 days of starting ride-sourcing.
• You should give your ABN to the platform you drive for.
• If you do not register when you are required to, penalties and interest may apply.

GST on fares, and GST credits

The ATO's reporting and paying GST page explains that you pay GST on the full fare, and that you may be able to claim GST credits for the GST included in the price of things you buy for your ride-sourcing business. The ATO's tax invoices page also says that if a passenger asks for a tax invoice for a fare over $82.50 (including GST), you must provide one within 28 days of their request.

Lodging your BAS

Because you are registered for GST, you will lodge business activity statements (BAS). The ATO says ride-sourcing drivers lodge BAS monthly or quarterly, and cannot choose to report GST annually (ATO registrations page). Put your BAS dates in your calendar as soon as you register.

Income tax: all your ride-sourcing income counts

The ATO says the income you earn from ride-sourcing is assessable income and must be declared in your tax return, including fares, tips and bonuses from the platform, even if you drive casually alongside another job (ATO income and deductions for ride-sourcing). Because tax is not withheld from your fares the way it is from wages, many drivers set aside a percentage of each payout so the tax bill is not a shock at tax time. The right percentage depends on your whole situation, so it is worth checking with a registered tax agent. Our sole trader tax set-aside calculator can help you think it through.

Records the ATO says to keep

The ATO's ride-sourcing record keeping page lists records drivers need, including:

• income statements and summaries from the platforms you drive for
• receipts for your expenses
• a logbook and odometer records for your car, if you use the logbook method

The ATO also points drivers to the myDeductions tool in the ATO app, which can record trips and expenses (ATO record keeping page).

Car expenses: two methods

For a car, the ATO describes two methods for working out car expense deductions:

• Cents per kilometre: a set rate per business kilometre, up to a maximum of 5,000 km per car per year. The ATO lists 88 cents per km for 2024–25 and 2025–26, and 91 cents per km for 2026–27. The rate covers all car running costs, including registration, insurance, fuel and decline in value, so you cannot add those on top (ATO cents per kilometre method).
• Logbook method: claim the business-use percentage of your actual car expenses, based on a logbook kept for at least 12 continuous weeks plus odometer records. The ATO says a logbook is valid for 5 years unless your circumstances change (ATO logbook method).

Rideshare drivers often travel well over 5,000 km a year, so it is worth understanding both methods. Which one suits you depends on your records and circumstances. The ATO pages above, or a registered tax agent, can help you decide.

Sole Trader Tax & BASTrack income, expenses and GST, see BAS figures by quarter, and estimate how much tax to set aside.See the app →Money HQYour whole money life in one browser app: payday-aware budget, bills calendar, savings goals, debt payoff and net worth.See the app →

A simple monthly routine for drivers

1. Download your platform income statement.
2. Record your fares, and note the GST included.
3. Add your receipts: fuel, cleaning, phone, tolls, servicing.
4. Note your odometer reading, and keep your logbook up to date if you use one.
5. Move your tax set-aside into a separate account.
6. Check the date of your next BAS.

Ten minutes a week or so keeps BAS time and tax time far less stressful.

A worked example (made-up numbers)

Say a driver earns $1,100 in fares one month and spends $260 on fuel, $40 on a car wash and $35 on their phone. They log those receipts, note their odometer reading at the start and end of the month, and move a set percentage of the fares into a tax savings account. At BAS time, the figures are already organised. These numbers are an illustration only and say nothing about what any driver will owe.

Track rideshare income, expenses and tax set-aside

Our Side Hustle Tax app keeps income by stream (Uber, DiDi, a second job), logs expenses with a receipt tick, and holds your own set-aside percentage, so you always know what to put away. It also tracks a rolling GST turnover check for other side hustles.

For car running costs, rego and per-km cost, see Car & Rego (A$19). Full-time driver? Sole Trader (A$65) covers more. See also our sole trader tax tracker guide.

These apps help you organise records. They do not lodge BAS or tax returns, and they do not give tax advice.

Frequently asked questions

General information only, not tax or financial advice. Facts are summarised from ATO pages (linked above) and can change. Check ato.gov.au or speak with a registered tax agent about your situation.