Why Rideshare Drivers Must Register for GST
Under Australian tax law, rideshare services are classified as "taxi travel." The ATO ruled in 2015 that this means the $75,000 GST registration threshold doesn't apply. If you earn even $1 from Uber, Ola, DiDi, or any rideshare app, you must:
- Have an ABN
- Register for GST
- Lodge BAS (quarterly or monthly)
- Issue tax invoices if asked
This applies whether you drive full-time or just a few hours on weekends.
How GST Works on Your Fares
When a passenger pays $22 for a ride, that fare is GST-inclusive. The breakdown:
| Component | Amount | Who Gets It |
|---|---|---|
| Fare (ex-GST) | $20.00 | Split between you & platform |
| GST (10%) | $2.00 | You owe this to ATO |
| Platform fee (~25%) | ~$5.00 | Uber/Ola/DiDi |
| Your net (before expenses) | ~$15.00 | You |
Important: You owe GST on the full fare amount (1/11th of what the passenger pays), not just on your share after the platform takes its cut. However, you can claim GST credits on the platform's service fee because they charge you GST on it.
What GST Credits Can Rideshare Drivers Claim?
This is where you claw back money. You can claim GST credits on all business expenses:
| Expense | GST Credit? | Notes |
|---|---|---|
| Fuel | ✅ Yes | Business-use portion only. Keep receipts or use logbook method. |
| Car servicing & repairs | ✅ Yes | Business portion. Oil changes, tyres, brakes. |
| Car insurance | ✅ Yes | Business portion of comprehensive/CTP. |
| Platform service fee | ✅ Yes | Uber/Ola/DiDi charge GST on their commission. |
| Phone & data plan | ✅ Yes | Business-use portion. You need it for the app. |
| Dash cam | ✅ Yes | 100% business if only used while driving. |
| Car wash | ✅ Yes | Keeping the car clean is a business expense. |
| Tolls | ❌ No | Tolls are GST-free. |
| Car depreciation | N/A | Not a GST item. Claim as income tax deduction instead. |
Lodging BAS as a Rideshare Driver
Most rideshare drivers lodge BAS quarterly. Here's the cycle:
| Quarter | Period | BAS Due Date |
|---|---|---|
| Q1 | Jul – Sep | 28 October |
| Q2 | Oct – Dec | 28 February |
| Q3 | Jan – Mar | 28 April |
| Q4 | Apr – Jun | 28 July |
Pro tip: Uber, Ola, and DiDi all provide tax summaries. Download them at the end of each quarter — they show total fares, GST collected, and service fees with GST. This makes filling out your BAS much faster.
Common Mistakes Rideshare Drivers Make
- Not registering for GST — The ATO actively audits rideshare drivers. Penalties apply.
- Claiming 100% of car expenses — Unless your car is 100% for rideshare (unlikely), you must apportion. Use the logbook method for the best result.
- Forgetting to set aside GST — Put aside 10% of every fare into a separate account. Don't spend it.
- Not claiming platform fees — The service fee Uber/Ola/DiDi charges includes GST. Claim it back.
- Mixing personal and business — Get a separate bank account. It makes tax time 10x easier.
Food Delivery Drivers: Different Rules
If you only do food delivery (UberEats, Menulog, DoorDash) and not passenger transport, the $75K threshold does apply. Food delivery is not "taxi travel" under tax law. But if you do both rideshare AND food delivery, you must register for GST because of the rideshare component.
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Summary Checklist for Rideshare Drivers
- ✅ Get an ABN (free at abr.gov.au)
- ✅ Register for GST immediately (via ATO or your accountant)
- ✅ Set aside 10% of fares for GST
- ✅ Keep all business expense receipts
- ✅ Use logbook method for car expenses
- ✅ Download platform tax summaries each quarter
- ✅ Lodge BAS on time (28th of the month after quarter ends)
- ✅ Consider accounting software or a tax agent