Tax basics for rideshare drivers

Before your first trip: an ABN and GST

Ride-sourcing is taxi travel for GST purposes, so the usual $75,000 turnover threshold does not apply. You must be registered for GST before your first trip, however little you expect to earn, and GST registration needs an ABN. The only exception is an employee. You can get both at once through Online services for business, describing the business as taxi ride sourcing, or a registered tax or BAS agent can register you. If you already have an ABN, register for GST within 21 days of starting. Once registered, give the platform your ABN, because it may issue tax invoices on your behalf. Penalties and interest may apply if you don't register.

Every fare carries GST

GST is charged on the full fare the passenger pays, not on what reaches you after the platform's commission. The GST is one-eleventh of the fare: on a $55 fare it is $5, even if the platform keeps $11 and pays you $44. If the platform's fee includes GST, you may be able to claim a credit for it. You report and pay through a business activity statement monthly or quarterly; ride-sourcing drivers cannot choose to report annually.

A tax invoice when a passenger asks

For a fare over $82.50 including GST, a passenger who asks for a tax invoice must get one within 28 days. The platform may issue it for you if it has your GST details; otherwise you provide one with your ABN on it. Under $82.50 an ordinary invoice is enough.

A tax invoice for a sale under $1,000 must make seven things clear: that it is intended to be a tax invoice, who the seller is, the seller's ABN, the date it was issued, what was sold and the price, the GST, and the extent to which the sale is taxable. From $1,000 the buyer's identity or ABN is added. A PDF counts. If you are not registered for GST, your invoices must not say tax invoice at all.

RyeDC's Fare Meter makes an invoice from any trip it recorded, from your own business details. It is titled Tax invoice with the GST shown when you are registered, and Invoice otherwise, with a Bill to line for the passenger's name or ABN. You issue it, so check it before you send it, and don't make a second one for a trip the platform already invoiced. More on the Fare Meter page and in the Help: Business details and invoices.

Income tax: a return every year

All ride-sourcing income is assessable: fares, tips and bonuses from the platform, even as a side income to another job. Because you are running a business, you lodge a return whatever you earned, with the business and professional items schedule. The ATO requests data from the platforms operating in Australia to identify the drivers who earn through them.

What you can deduct

Expenses are deductible to the extent that they directly relate to providing ride-sourcing services. An expense that is part business and part private is apportioned, with a record of how. The ATO's own list includes the platform's fees or commission, fuel, lease payments, parking, tolls the passenger did not pay, water and mints for passengers, wipes and sanitiser, driver accreditation with the medical and police checks behind it, and tax agent fees. Not deductible: a private driver licence, fines, meals on a break, fuel tax credits, and the private use of the car. If you claim a GST credit on an expense, the deduction is the amount less the GST.

Car expenses have rules of their own: a set rate per kilometre up to 5,000 a year, or the logbook method for the business share of all the car's costs. Logbook method or cents per kilometre? sets the two side by side, and The car logbook for rideshare drivers walks through the logbook, including the ATO's examples of which trips are business.

Records: five years

Keep the platform's statements of your income, receipts for every expense you claim, and your logbook and odometer readings, for five years after you lodge. Electronic records are fine. RyeDC keeps the logbook side: every drive and shift with its odometer readings, exported as PDF or Excel. Receipts and statements stay with you or your agent.

Sources

• ATO, Ride-sourcing, QC 53224, last updated 9 October 2025, read 14 October 2026. ato.gov.au › Sharing economy and tax › Ride-sourcing
• ATO, Registrations, QC 59245, last updated 20 August 2025, read 14 October 2026. ato.gov.au › Ride-sourcing › Registrations
• ATO, Reporting and paying GST, QC 59246, last updated 20 August 2025, read 14 October 2026. ato.gov.au › Ride-sourcing › Reporting and paying GST
• ATO, Fares, QC 59247, last updated 20 August 2025, read 14 October 2026. ato.gov.au › Reporting and paying GST › Fares
• ATO, Tax invoices (ride-sourcing), QC 59249, last updated 20 August 2025, read 14 October 2026. ato.gov.au › Ride-sourcing › Tax invoices
• ATO, Income and deductions for ride-sourcing, QC 59250, last updated 20 August 2025, read 14 October 2026. ato.gov.au › Ride-sourcing › Income and deductions for ride-sourcing
• ATO, Record keeping (ride-sourcing), QC 53230, last updated 20 August 2025, read 14 October 2026. ato.gov.au › Ride-sourcing › Record keeping
• ATO, Tax invoices, QC 22438, last updated 18 September 2026, read 14 October 2026. ato.gov.au › GST › Tax invoices
• ATO, Setting up your business invoices, QC 60725, last updated 20 March 2025, read 14 October 2026. ato.gov.au › Setting up and managing records › Setting up your business invoices