Driving for a rideshare or delivery app can be a flexible way to earn money, but it comes with tax obligations many drivers don’t expect. Here’s a plain-English guide.
You’re running a business
Most app-based drivers work as independent contractors. That means you’ll generally need an ABN, and your earnings are business income that goes in your tax return.
GST: rideshare vs food delivery
- Rideshare (carrying passengers): you must register for GST from your first dollar of income, regardless of how much you earn.
- Food or parcel delivery only: you generally only need to register for GST once your turnover reaches $75,000.
If you’re registered for GST, you’ll lodge a BAS, usually quarterly, and you can claim GST credits on eligible business expenses.
What you can claim
- The business-use portion of car running costs: fuel, servicing, insurance, registration and depreciation
- Phone and data used for the app
- Car cleaning and tolls while working
- Platform fees and commissions
Keep a logbook to work out your business-use percentage — it usually gives a better result than estimating.
Avoid a tax-time shock
Set aside money from every payment for tax and GST. We can help you work out how much, set up simple record keeping and lodge your BAS on time.
Need help? Talk to UV TAX
UV TAX is a registered tax agent with offices in Truganina and Point Cook, helping clients across Australia. Call 0466 268 405 for a free consultation and a free fixed quote.
Related: ABN Registration · GST Registration · BAS & GST · Sole Trader Tax Returns
This article is general information only and does not take your personal circumstances into account. Please contact us for advice about your situation.