GST Obligations For Uber Drivers In Australia

Driving with Uber can be a flexible way to earn income in Australia. But the moment you start offering rides for a fare, your GST position changes in important ways.

The good news is that once you understand the basics, staying compliant is manageable. In this guide, we explain how GST works for ridesourcing, what to register for, how to approach your Business Activity Statement (BAS), and the practical steps to keep your records in order.

Quick note: Sprintlaw is a law firm. We provide legal information and services, and we don’t provide tax or accounting advice. GST and income tax can be complex, so it’s a smart idea to speak with a registered tax agent or accountant for advice about your specific circumstances. We’ve included this overview to help you understand the legal and compliance framework around ridesourcing so you can confidently set things up.

Do Uber Drivers Need To Register For GST?

Yes. If you provide ridesourcing services (for example, UberX, UberXL or Uber Comfort), you must register for GST from day one, regardless of how much you earn.

For GST purposes, ridesourcing is treated like taxi travel. That means the general $75,000 annual GST turnover threshold does not apply to rideshare work. If you’re driving passengers for a fare, you’re required to register for GST, report your GST on fares and claim eligible GST credits on your BAS.

If you want a deeper primer on how the rule applies to rideshare specifically, it’s worth reading this overview of GST requirements for Uber drivers.

What About Uber Eats And Other Delivery Apps?

Delivery-only services (like Uber Eats or DoorDash) are treated differently. Food delivery is not “taxi travel”, so the usual $75,000 GST threshold applies. If you only do deliveries and your GST turnover is below $75,000, GST registration is generally not mandatory (you can choose to register voluntarily).

If you do both ridesourcing and deliveries, the ridesourcing rule still applies - registering for GST because of your rideshare work will also cover your delivery income. For delivery-specific setup and eligibility, check the UberEats driver requirements and DoorDash ABN requirements.

ABN, GST Registration And Your Platform Setup

Before you can register for GST, you’ll need an Australian Business Number (ABN). Most Uber drivers start as sole traders, but you can choose a different structure if it suits your plans.

Once your ABN is active, you can register for GST with the Australian Taxation Office (ATO) from the date you start ridesourcing. The ATO may also place you into Pay As You Go (PAYG) instalments depending on your tax position - your accountant can confirm how and when PAYG applies to you.

If you’re weighing up the pros and cons of operating as a sole trader, this guide to the benefits of working under an ABN is a helpful refresher. And if you’ve applied for an ABN and want to confirm that it’s live, here’s how to check if an ABN is active.

Are You Carrying On An Enterprise?

For GST, you need to be carrying on an “enterprise” (for example, regularly providing rides for a fare). Most rideshare activity will meet this test, but if you’re unsure, it can help to understand what defines a business activity in Australia. Keep in mind that once you offer rides for consideration, the ridesourcing GST rule applies from your first dollar of fares.

How GST Works On Uber Fares And Your BAS

Once registered for GST, you need to report GST on taxable sales (your Uber fares) and you may be able to claim GST credits for eligible business purchases. Here’s how the moving parts fit together.

GST Is Included In Rider Fares

Uber shows GST-inclusive fares to riders in Australia. For you, GST on sales is generally 1/11th of your total taxable fares for the period. Importantly, that figure is based on your gross fares - not your net payment after Uber’s service fee and other deductions.

You’ll report your total sales (gross fares) at G1 on your BAS and the GST on sales at 1A. If you have eligible GST credits on expenses, you’ll report those at 1B. Most sole traders lodge quarterly BAS, though you can choose monthly if you prefer closer cash flow tracking.

Claiming Input Tax Credits On Business Expenses

You can generally claim GST credits for the business-use portion of purchases that directly relate to earning your rideshare income. Common examples include:

• Car servicing and maintenance (apply your business-use percentage)
• Car washing and detailing
• Tolls and parking connected to rides (where GST applies)
• Mobile phone plan and data (business proportion)
• Accounting, bookkeeping or software fees
• Uber-related partner subscriptions or fees where GST is charged

Keep tax invoices and records for at least five years. If you use the car for both personal and Uber work, maintain a logbook or another method to support your business-use percentage.

What About Uber’s Service Fees And Commissions?

Uber deducts a service fee from your gross fares before paying you. When working out GST on sales, you still calculate 1/11th of your gross fares (before fees). The GST treatment of Uber’s service fee depends on the contracting entity and the details shown on your Uber statements. Rely on your Uber reports to identify any GST charged on the fee and discuss with your tax agent whether GST credits are available for your situation.

Tolls, Surcharges, Cleaning And Cancellation Fees

Where tolls or surcharges are passed on to riders, they usually form part of your taxable sale and are included in your GST on sales calculation. From your side, tolls you pay are typically business expenses and, where GST applies, may be creditable to the extent of business use.

Cleaning fees charged to riders (for example, for soiling a vehicle) and cancellation fees are generally taxable as well. These amounts should appear in your Uber statements and be included in your BAS numbers.

Fuel Tax Credits

Most rideshare vehicles won’t be eligible for fuel tax credits because cars under 4.5 tonnes operating on public roads are excluded. If you operate a different type of vehicle or you’re unsure, check this point with your tax adviser.

Recipient Created Tax Invoices (RCTIs)

Uber typically issues Recipient Created Tax Invoices (RCTIs). This means Uber generates a tax invoice for the services you provide via the platform rather than you invoicing Uber.

To use RCTIs, you’ll need an ABN, you must be GST-registered if required, and you need to agree to the platform’s RCTI terms. Keep Uber’s weekly or monthly summaries – they show your GST on fares, service fees and adjustments and are important source documents for your BAS.

Practical Steps To Stay GST-Compliant As An Uber Driver

A little upfront organisation makes BAS time far less stressful. Here’s a simple setup that works well for many drivers.

1) Register At The Right Time

Register your ABN and your GST effective from the date you start ridesourcing. Make sure your Uber account shows the correct ABN and GST status so your statements and payouts align with your registration.

2) Save Your Statements And Receipts

Download Uber statements each week or month and store them in a secure folder. Keep digital copies of tax invoices for your expenses, and label them so you can see at a glance what relates to your Uber work.

3) Track Gross Fares - Not Just Net Payouts

Create a simple spreadsheet (or use accounting software) to track:

• Gross fares (the amount before Uber’s fees)
• GST on sales (usually 1/11th of your taxable fares)
• Uber service fees and any GST shown on those fees
• Business expenses and GST credits

At BAS time, your gross fares feed into G1, and your GST on sales goes to 1A. Your eligible GST credits go to 1B.

4) Choose A BAS Frequency That Fits Your Cash Flow

Quarterly BAS works for many drivers because it’s less admin. If cash flow is tight or you’d prefer credits and liabilities to align more closely with activity, monthly BAS may suit you better. Either way, add the due dates to your calendar and lodge on time to avoid penalties.

5) Put Money Aside For GST And Income Tax

Open a separate bank account and move a percentage of each payout to cover GST and income tax. Some drivers start with 15–30% as a rough guide and then adjust once they’ve seen a few BAS periods and their annual tax return.

6) Mixed Activities? Keep The Rules Straight

If you’re registered for GST because you drive passengers, that registration applies to your delivery income too. Include your delivery income on your BAS and apply GST consistently. If you only do deliveries and your GST turnover is below $75,000, registration is generally optional unless you choose to register voluntarily.

7) Fix ABN And Identity Mismatches Early

If payouts are delayed or statements look off, double‑check that your ABN is active and your GST registration is correctly linked to your Uber account. You can quickly confirm your ABN status using the ABR lookup tools and this guide on how to check if an ABN is active.

Business Structure, Risk And When To Get Advice

Most Uber drivers operate as sole traders with an ABN and GST registration. As your income grows or if you branch into a broader transport business (for example, chauffeured transport with multiple vehicles or drivers), you might consider a company structure for risk management and scalability. That decision depends on your goals, your appetite for admin and how you plan to grow.

Whatever structure you choose, good risk management is essential. Keep your vehicle maintained, consider appropriate business insurance and maintain consistent records to support your GST and income tax positions. If you’re unsure whether your activity amounts to carrying on a business for GST, it helps to revisit what defines a business activity and speak with your accountant.

Finally, because GST interacts with your overall tax position, it’s wise to have a tax professional review your first BAS or two. They can check your approach to mixed-use expenses (like car costs and phone plans), confirm your logbook methodology and help you decide on the right BAS frequency. If you need legal help on your business setup (for example, moving to a company or updating your details with platforms), we’re here to help on the legal side.

FAQs: Quick Answers For Uber Drivers

Do I Need To Issue Tax Invoices To Riders?

Generally no. Riders receive receipts from the Uber platform, and Uber issues RCTIs to you for your services. If you accept any private jobs outside the app, you’ll need to know when a tax invoice is required and what details it must contain.

Can I Claim GST Credits On Buying A Car?

If you’re GST-registered and buy a car you use for Uber, you may be able to claim GST credits up to the car limit and only for the business-use proportion. Keep your purchase tax invoice and business‑use records, and get tailored advice from your accountant.

What If I Start Under $75,000 And Only Do Deliveries?

For delivery-only work, the general $75,000 threshold applies. If you’re below that level, you don’t have to register for GST unless you choose to. If you later start ridesourcing, you need to register from the date you begin carrying passengers for a fare.

How Does GST Interact With Income Tax?

GST is separate to income tax. Your BAS covers GST collected and GST credits, while your annual tax return deals with your taxable income after business deductions. Put money aside for both so you’re not caught out at year-end.

Do I Need A Business Name Or Company?

Not necessarily. As a sole trader, you can operate under your personal name with an ABN. If you want to trade under a different name, you can register a business name, and if you later scale up, you might explore a company. Focus first on getting your ABN and GST registration right for ridesourcing, then reassess as you grow.

Key Takeaways

• Ridesourcing (UberX and similar) requires GST registration from your first dollar of fares - the $75,000 threshold doesn’t apply to rideshare.
• Delivery-only services like Uber Eats follow the standard $75,000 GST threshold, but if you also drive passengers, your GST registration covers delivery income too.
• Report GST on your gross fares (before fees) and claim eligible GST credits for business expenses on your BAS using accurate, well‑kept records.
• Keep Uber statements, tax invoices and a logbook (or similar) to support your business-use percentages and BAS claims.
• Use RCTIs correctly and make sure your ABN and GST registration are active and linked to your Uber account to avoid payout or reporting issues.
• Tax rules can be nuanced - work with a registered tax agent on GST credits, car limits, PAYG instalments and BAS frequency to suit your situation.

If you’d like a consultation on GST obligations for Uber drivers in Australia (and the legal side of getting set up), you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.