Driving for a rideshare platform is the one small business in Australia where GST starts on your very first dollar. Most drivers find this out from a letter, not from the app. This guide covers the registration rule, GST on fares, what you can claim, how the income is taxed, and what the platforms report to the ATO about you.
Why rideshare drivers register for GST from day one
The GST law requires anyone providing taxi travel to register regardless of turnover, and the ATO classifies ride-sourcing as taxi travel. The practical consequences are spelt out on its ride-sourcing pages: you need an ABN and a GST registration from the day you start, the only exception being a genuine employee; if you already have an ABN but no GST registration, you have 21 days from your first trip to register; and penalties and interest can apply if you don't. Once registered, give the platform your ABN and a declaration that you are registered, because an offshore platform without them must assume you are not.
Delivery riders sit under the ATO's separate guidance for providing services through a platform. There you register for GST only when GST turnover across all your enterprises reaches $75,000. Our GST registration threshold guide explains how turnover is measured.
GST on the full fare, not your payout
GST is charged on the full fare the passenger pays, which the platform calculates, and the ATO states that GST applies to every dollar you earn as a ride-sourcing driver. One-eleventh of the gross fare is GST you owe, before the platform's commission comes off. You report it on a business activity statement either monthly or quarterly; annual GST reporting is not available to ride-sourcing drivers. A passenger who asks for a tax invoice for a fare over $82.50 must be given one, though the platform may issue it for you.
GST credits on your costs
The same BAS is where you claim back the GST included in your business purchases: fuel, tolls and parking, registration and insurance, servicing, the platform's service fees or commission where GST is charged on them, and depreciating assets such as the car itself. Everything is apportioned between business and private use, and only the business share of the GST is claimable. The ATO's example is a driver using the car 10% for ride-sourcing who claims 10% of the GST on a new car, fuel and a service. To claim GST on a car purchase you must genuinely have been in business at the time, with an ABN and GST registration in place, and the credit is capped at one-eleventh of the car limit. Registration can't be backdated to capture the GST on a car bought before you started.
Once you have claimed a GST credit on an expense, only the GST-exclusive amount is an income tax deduction. Our BAS, GST and IAS service handles the quarterly cycle for drivers.
Income tax: every fare, tip and bonus
All ride-sourcing income is assessable: fares, tips and platform bonuses, even if you drive casually alongside a job. Because you are running a business, you lodge a return regardless of how little you earn, reporting the income as business income with the supplementary section and business schedule. Delivery income is treated the same way. If you have another job, the two are combined in one return and taxed on the total, which is how a modest side income can end in a bill.
The ATO already has the platform's numbers
Under the Sharing Economy Reporting Regime, platform operators must report payments made to drivers and riders twice a year: by 31 January for July to December, and by 31 July for January to June. Reporting began on 1 July 2023 for taxi and ride-sourcing platforms and short-term accommodation, and extended to delivery, courier and other task-based platforms from 1 July 2024. The ATO uses the data to check registration, lodgement and reported income.
What you can claim
Expenses are deductible to the extent they relate to providing the service. The ATO's own list for ride-sourcing includes:
- Car expenses using one of the two methods below.
- Platform fees or commission.
- Phone and data, apportioned for the business share.
- Tolls the passenger didn't pay, and parking incurred while working.
- Passenger amenities: bottled water, mints, tissues, and the wipes and sanitiser used to clean the car.
- Commercial licences and accreditation: driver accreditation, registration and application fees, medical tests and police checks. A private driver licence is never deductible.
- Tax agent fees.
Fines, meals on a break and the private share of any expense are not deductible. Insurance, registration and cleaning are part of car expenses and are claimed through whichever car method you use.
Cents per kilometre or logbook
As a sole trader you can choose between two methods for a car, change methods from year to year, and use different methods for different cars.
Cents per kilometre pays a flat rate for up to 5,000 business kilometres per car per year: 88 cents for 2024–25 and 2025–26, rising to 91 cents for 2026–27. The rate covers everything, including depreciation, fuel, servicing, registration and insurance, so nothing can be added on top. You don't need receipts, but you must be able to show how you worked out the kilometres, such as a diary or the myDeductions tool in the ATO app.
The logbook method lets you claim the business-use percentage of all running costs, depreciation and interest. You keep a logbook for a continuous 12-week period that represents your pattern, record odometer readings, and keep receipts for every expense other than fuel, which can be estimated from odometer readings. A logbook is valid for five years. Full-time drivers usually do better with a logbook.
Which kilometres count is where claims go wrong. The ATO's examples are clear: a trip made solely to find and carry fares counts from the time you leave home until you return, but if the app is simply on while you drive to your other job, only the distance from accepting a job to completing it is business travel, and heading to the office afterwards is private.
PAYG instalments and the year-end bill
No tax is withheld from platform payouts. Once your return shows business income, the ATO may bring you into the pay as you go instalment system so that tax is paid quarterly in advance, and the ATO's sharing economy guidance also encourages voluntary entry or prepayments to avoid a lump sum.
Record keeping
Keep platform statements showing your income, receipts for every expense you claim, your logbook and odometer readings, and a record of how you apportioned mixed-use costs, for five years after you lodge.
Sources
- ATO — Ride-sourcing
- ATO — Ride-sourcing registrations
- ATO — Reporting and paying GST
- ATO — GST credits for ride-sourcing
- ATO — Income and deductions for ride-sourcing
- ATO — Ride-sourcing record keeping
- ATO — How GST applies when providing services through a platform
- ATO — Registering for GST
- ATO — Cents per kilometre method (rates)
- ATO — What is the Sharing Economy Reporting Regime?
- ATO — Preparing for a potential tax bill
Frequently asked
I only drive a few hours a week. Do I really need to register for GST?
Yes. Ride-sourcing is treated as taxi travel for GST, and the ATO requires an ABN and GST registration from the day you start, regardless of how much you earn. The $75,000 turnover threshold does not apply to rideshare driving. Penalties and interest can apply if you don't register.
I do food delivery only. Is that different?
Yes. Delivering food or parcels is not ride-sourcing, so the normal rule applies: you register for GST once your GST turnover from all your business activities reaches $75,000. You still need to declare every dollar of delivery income in your tax return.
Is GST charged on what I receive after the platform's commission?
No. GST is 1/11th of the full fare the passenger pays, before the platform takes its fee. You then claim back the GST included in the platform's service fee and your other business costs on the same BAS, as long as you have apportioned for private use.
Can I claim the kilometres driving around waiting for a job?
The ATO's examples draw the line at purpose. If you leave home solely to find fares and go home afterwards, the trip is business-related. If the app is on while you drive to your day job, only the kilometres from accepting a job to completing it count, and driving to the office afterwards is private.
What does the platform tell the ATO about me?
Under the Sharing Economy Reporting Regime, platforms report drivers' income to the ATO twice a year. Ride-sourcing and taxi platforms have reported since 1 July 2023, and delivery and other task-based platforms since 1 July 2024. The ATO matches that data against tax returns and BAS lodgements.