Uber Driver Tax Guide Australia 2026: ABN, GST, Deductions & BAS
Driving for Uber, DiDi or Ola in Australia? You must have an ABN and register for GST from dollar one. Here's your complete guide to tax obligations, deductions, BAS, and how much you'll actually take home.
You need an ABN — and must register for GST from the first dollar
If you drive for Uber, DiDi, Ola, or any other ride-sourcing platform in Australia, the ATO classifies you as a sole trader running a business. This means you must have an Australian Business Number (ABN) before you start driving. You can apply for an ABN for free at abr.gov.au — it takes about 10 minutes and you usually receive it immediately. Here is the critical part that catches many drivers out: you must register for GST regardless of your income. Normally, businesses only need to register for GST once their turnover exceeds $75,000 per year. But ride-sourcing is a specific exception — the ATO requires all ride-sourcing drivers to register for GST from the first dollar of income. This means you must charge GST on every trip (the platform handles this), lodge Business Activity Statements (BAS) quarterly, and pay 1/11th of your fare income to the ATO as GST. Failure to register can result in penalties and back-payment of GST owed.
BAS lodgement: what to report and when
Once registered for GST, you must lodge a BAS every quarter. The quarters and due dates are: July-September (due 28 October), October-December (due 28 February), January-March (due 28 April), and April-June (due 28 July). On your BAS, you report: total GST collected on fares (1A), GST credits on business expenses (1B), and the difference is what you pay or receive. For example, if you earned $8,000 in fares for the quarter, GST collected is $727.27 (1/11th of $8,000). If you had $2,000 in deductible business expenses that included $181.82 in GST, your net GST payable is $545.45. You can lodge BAS through myGov, a registered tax agent, or accounting software like Xero or MYOB. Keep all receipts and records — the ATO requires you to retain records for five years. Many drivers use apps like Driversnote or Hurdlr to automatically track kilometres and expenses throughout the year.
Deductions: what you can (and can't) claim
As a ride-sourcing driver, you can claim deductions for expenses directly related to earning your fare income. The biggest deduction is usually car expenses. You have two methods: the logbook method (actual expenses multiplied by business-use percentage based on a 12-week logbook) or the cents-per-kilometre method (85 cents per km for 2025-26, capped at 5,000 km). For most full-time drivers, the logbook method produces a larger deduction. Claimable car expenses include fuel, registration, insurance, loan interest, depreciation, servicing, and tyres. Other deductions include: mobile phone (business-use percentage), phone mount and charger, cleaning supplies for your vehicle, car washes, tollway fees during trips, parking when waiting for rides, bottled water and mints provided to passengers, and accounting or tax agent fees. You cannot claim fines, the cost of meals while waiting, clothing (unless a branded uniform), or any expenses that are private in nature. Keep detailed records of everything.
Superannuation: not entitled, but you should contribute
As an independent contractor (not an employee), ride-sourcing platforms like Uber are not required to pay the 12% Superannuation Guarantee on your earnings. This is one of the significant downsides of gig economy work compared to traditional employment. However, you can — and absolutely should — make voluntary super contributions. Personal contributions to your super fund are tax-deductible up to the $30,000 annual concessional contribution cap. Since you have no employer contributions using up this cap, the full $30,000 is available to you. For someone earning $50,000 from Uber with a marginal tax rate of 30%, contributing $5,000 to super saves $750 in tax (the contribution is taxed at 15% inside super instead of 30% in your hands). You can set up regular contributions through your super fund's BPAY or direct debit facility. Remember to submit a Notice of Intent to Claim a Deduction to your super fund before lodging your tax return, otherwise the deduction is not available.
Worked example: how much tax on $50,000 Uber income
Let's calculate the real tax position for an Uber driver earning $50,000 in gross fares over a full year. First, GST: 1/11th of $50,000 is $4,545 in GST collected. Assume $12,000 in deductible expenses (fuel, rego, insurance, phone, cleaning) containing $1,091 in GST credits. Net GST payable: $3,454 per year ($863 per quarter). Your income for tax purposes is $50,000 minus $4,545 GST minus $12,000 deductions = $33,455 taxable income. Income tax on $33,455 (2025-26 rates): $0 on first $18,200, then 16% on $15,255 = $2,441. Medicare levy: 2% of $33,455 = $669. Total income tax plus Medicare: $3,110. Grand total outgoings: $3,110 income tax plus $3,454 net GST = $6,564. Your actual take-home from $50,000 in fares is approximately $31,436 after GST, tax, and expenses. That is an effective overall rate of about 37% gone to tax, GST, and costs.
Common mistakes and record-keeping requirements
The number one mistake ride-sourcing drivers make is not registering for GST or not lodging BAS on time. The ATO actively data-matches with platforms like Uber and DiDi — they know exactly how much you earned. Late BAS lodgement attracts a penalty of $313 per 28-day period (for small entities), up to a maximum of $1,565. The second most common mistake is not separating business and personal car use. If you use your car for both Uber driving and personal trips, you must only claim the business-use portion. A valid logbook kept for a minimum of 12 continuous weeks establishes your business-use percentage, which you can then apply for five years (unless your circumstances change significantly). Other mistakes include: claiming GST credits on expenses that do not include GST (like insurance, council registration), forgetting to declare cash tips as income, and not keeping records for the required five years. Use a separate bank account for your driving income to make record-keeping dramatically simpler.
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Official resources
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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