Do I Need an ABN for Airtasker, Uber or DoorDash? (Tax Guide)

If you're earning money through Airtasker, Uber, DoorDash, Menulog, Deliveroo, or any similar platform — you're running a sole trader business in the eyes of the ATO. And sole traders need an Australian Business Number (ABN).

Most platforms will actually require you to provide an ABN before you can start earning. If you don't have one, they'll typically withhold tax at the top marginal rate (47%) from your payments. That's a massive chunk of your earnings that you won't get back until you lodge your tax return.

Getting an ABN is free and takes about 10 minutes through the Australian Business Register (ABR) website. You don't need to register a business name — you can operate under your own name as a sole trader. You just need your TFN and some basic personal details.

One important clarification: having an ABN doesn't mean you're "starting a business" in the traditional sense. It just means the ATO recognises that you're earning income as an independent contractor rather than an employee. The platform isn't your employer — you're a self-employed service provider.

Having an ABN and being registered for GST are two different things. You need an ABN to operate. You only need to register for GST in specific circumstances.

You MUST register for GST if:

• Your annual turnover (not profit — turnover) is $75,000 or more
• You provide taxi or rideshare services — regardless of your turnover. This catches Uber, Ola, DiDi, and similar drivers. Even if you earn $5,000 a year from rideshare, you need GST registration

That rideshare rule catches a lot of people off guard. The ATO has been crystal clear on this since 2015: all rideshare drivers must register for GST from their first fare. It doesn't matter if it's a side hustle. It doesn't matter if you're under $75K.

For food delivery (DoorDash, Menulog, Uber Eats), the rideshare GST rule does not apply — it only applies to passenger transport. So if you're only doing food delivery and your turnover is under $75K, you don't need GST registration. But if you do both rideshare and food delivery, you're caught by the rideshare rule.

For Airtasker, it depends on your total turnover across all business activities. Under $75K and no rideshare? No GST registration needed. Over $75K? You must register.

This is where gig work gets better at tax time. As a sole trader, you can claim deductions for legitimate business expenses — and gig work comes with heaps of them.

Delivery drivers and rideshare:

• Vehicle expenses — fuel, maintenance, registration, insurance (business-use portion only). Use either the logbook method or cents-per-km method
• Phone and data — the portion you use for the app and navigation (typically 50-75% if you use the same phone for personal use)
• Insulated delivery bags, phone mounts, car chargers
• Tolls and parking incurred while working
• Safety gear — helmets, hi-vis, wet weather gear for bike/scooter couriers

Airtasker and similar platforms:

• Tools and equipment used for tasks
• Materials and supplies
• Travel between job sites
• Platform fees — any service fees charged by the platform
• Home office expenses if you do admin or preparation work from home

Keep every receipt. Use an app like the ATO's myDeductions tool to log expenses as they happen. Come tax time, you'll be glad you did.

If you're registered for GST, you'll need to lodge a Business Activity Statement (BAS) — usually quarterly. This is where you report the GST you've collected on your fares/jobs and claim back the GST on your business expenses.

Even if you're not GST registered, the ATO might send you PAYG instalment notices after your first tax return shows business income. These are quarterly payments towards your expected tax bill, so you don't get slugged with one massive bill at the end of the financial year.

This is where a lot of gig workers come unstuck. When you're an employee, tax is taken out automatically. When you're a sole trader, you have to set money aside and pay it yourself. If you spend everything you earn and don't save for tax, you'll get a nasty surprise.

A good rule of thumb: put 25-30% of your gig income into a separate bank account for tax. Don't touch it. When your BAS or tax return comes due, the money is there.

Use our GST calculator to work out your GST obligations, or our contractor tax calculator for a full picture of what you'll owe.

Understanding the difference matters because it affects your rights, tax obligations, and protections.

As an employee, you get:

• Minimum wage and award conditions
• Superannuation (12% on top of your pay)
• Paid leave (annual, personal/carer's, long service)
• Workers' compensation insurance
• Unfair dismissal protections
• Tax withheld automatically (PAYG)

As a sole trader on an ABN, you get:

• None of the above (unless you're found to be a "sham contractor")
• You manage your own tax, super, and insurance
• You can claim business deductions
• You set your own hours (in theory)

Here's the dodgy part: some platforms (and some employers) use ABN arrangements to avoid paying entitlements. If the platform controls when you work, how you work, provides your equipment, and you can't subcontract the work — you might actually be an employee, not a contractor. This is called sham contracting, and it's illegal under section 357 of the Fair Work Act.

The courts have been increasingly willing to look through ABN arrangements to the reality of the working relationship. If you reckon you're being treated as an employee but classified as a contractor, the Fair Work Ombudsman wants to hear about it.

The ATO has specifically flagged gig economy workers as a focus area. They get data directly from the platforms — Uber, Airtasker, DoorDash all report your earnings to the ATO through the Taxable Payments Reporting System (TPRS). They know what you earned. Don't think you can fly under the radar.

If you don't lodge your tax return, don't report your gig income, or don't register for GST when you're required to:

• Failure to lodge on time: penalty of $313 for each 28-day period the return is late, up to a maximum of $1,565
• Failure to register for GST: you'll owe the GST you should have collected, plus potential penalties and interest
• Tax shortfall penalties: if you understate your income, penalties range from 25% to 75% of the shortfall amount, depending on whether it was carelessness or intentional
• Interest charges: the ATO charges interest on unpaid tax from the due date. The General Interest Charge rate is currently around 11% per annum

The good news: if you've been doing gig work and haven't sorted your tax yet, the ATO has a voluntary disclosure process. Coming to them before they come to you usually results in reduced penalties. Talk to a tax agent or use the ATO's resources for gig workers to get squared away.

Don't put this off. The longer you leave it, the worse it gets. Get an ABN, keep your records, lodge on time, and set money aside for tax. It's not complicated — it just needs to be done.