Rideshare and food delivery work has become a major source of income for a lot of people across Epping, Craigieburn, Reservoir and the broader northern suburbs — often alongside another job. The tax side of it, though, works a little differently to regular employment.
You need an ABN from day one
Because you’re contracting rather than employed, platforms like Uber won’t withhold tax for you. You’ll need an ABN before you can legally drive or deliver, and — unlike most small businesses — rideshare drivers must register for GST regardless of turnover. This surprises a lot of new drivers, since the usual $75,000 GST threshold doesn’t apply to ride-sourcing.
What you can claim
- A percentage of your car’s running costs — fuel, servicing, insurance, registration, and depreciation — based on the work-related portion of your driving.
- Platform fees and commissions charged by Uber, DoorDash, Menulog, or similar.
- Phone and data costs used for the work.
- Bags, delivery equipment, and safety gear for food delivery.
- Car cleaning, if you’re required to keep the vehicle presentable for passengers.
Keeping a logbook (or using the app’s own trip data alongside your own record) makes it far easier to substantiate the work-related percentage of your car expenses.
BAS obligations
Because you’re registered for GST, you’ll need to lodge a BAS — usually quarterly — reporting the GST on your fares or delivery fees and claiming back GST credits on your expenses. This is on top of your annual income tax return, where your net gig income (after expenses) gets added to your other income for the year.
Multiple income streams add complexity
Many of our clients drive for Uber on top of a regular job, or combine delivery work with another side business. Getting the interaction between PAYG withholding from your main job and your gig income right avoids a nasty surprise at tax time.
We do this every week
Between ABN registration, GST setup, quarterly BAS, and the annual return, gig economy tax has a lot of moving parts — but it’s routine work for us. Get in touch and we’ll get everything set up correctly, or take over an existing setup that needs tidying up.