Gig work through platforms like Uber, DiDi, or food delivery apps often starts as flexible side income, but the tax obligations that come with it catch many people by surprise. However, understanding the basics upfront makes it far easier to stay compliant and avoid an unexpected bill later.
Once you start earning income through a rideshare or delivery platform, you’re generally considered to be operating a business as a sole trader — even if it’s just a few hours a week. Consequently, this brings tax obligations that don’t apply to standard employees, including the need for an ABN.
Unlike most small businesses, which only need to register for GST once they cross the standard turnover threshold, ride-sourcing drivers (Uber, DiDi, and similar) must register for GST from their very first dollar of income, regardless of how little they earn. Therefore, this is one of the most commonly misunderstood rules among new rideshare drivers.
Food delivery work (through apps that don’t involve transporting passengers) generally follows the standard GST threshold rules, rather than the ride-sourcing exception. Consequently, it’s worth understanding which category your specific gig work falls into, since the obligations differ.
All income earned through gig platforms needs to be declared, and the ATO receives data directly from many platforms, making it easy to cross-check against what you report. Therefore, keeping your own records rather than relying purely on the app’s summary is a safer approach.
Vehicle expenses. Fuel, maintenance, insurance, and depreciation can generally be claimed based on the work-related percentage of your vehicle use, supported by a logbook.
Phone and data costs. The portion used for the platform app and work-related calls is generally deductible.
Platform fees and commissions. Fees charged by the platform itself are a legitimate business expense.
Bags, equipment, and safety gear. Insulated delivery bags, phone mounts, and similar work-specific equipment are typically deductible.
Tolls and parking. Costs incurred directly while completing paid work are generally claimable.
Not registering for GST when required. Particularly for rideshare drivers, who need to register immediately rather than waiting for a turnover threshold.
Mixing personal and work vehicle use without records. Without a logbook or clear record, it becomes difficult to substantiate the work-related portion of vehicle expenses.
Forgetting to set aside tax. Since no tax is withheld automatically from gig income (unlike employee wages), it’s easy to underestimate what will be owed at tax time.
Not keeping platform statements. These are useful for reconciling your own records against what the platform reports to the ATO.
Registering correctly, understanding your specific GST obligations, and setting aside a portion of income for tax as you go are the three habits that make the biggest difference for gig workers. Therefore, getting this right from your first ride or delivery avoids a much bigger headache later.
EBATS helps rideshare, delivery, and other gig economy workers register correctly, claim the right deductions, and avoid nasty tax surprises.
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