Tax Deductions for Uber Drivers Australia: Complete List for 2026

Driving for Uber, Ola, DiDi, or any rideshare platform in Australia means you are running a small business. That comes with obligations like GST registration and BAS lodgements, but it also comes with a long list of tax deductions most drivers never claim.

If you are not tracking your deductions properly, you are almost certainly paying more tax than you need to. This guide covers every tax deduction for Uber drivers in Australia for the 2025-26 financial year, plus the GST and record-keeping requirements the ATO expects you to meet.

This article is for general information only. Consult a qualified tax professional for advice specific to your situation.

Your Tax Obligations as a Rideshare Driver

Before diving into deductions, here is what the ATO requires from every rideshare driver in Australia.

ABN and GST Registration

Every rideshare driver must have an Australian Business Number (ABN). You are operating as a sole trader, and the ATO treats your driving income as business income.

Here is the critical difference many drivers miss: rideshare (passenger transport) drivers must register for GST from their very first dollar of income. There is no $75,000 threshold for passenger transport. If you earn $1 from Uber rides, you need a GST registration.

Food delivery drivers follow different rules. If you only deliver food (for example, through Uber Eats or DoorDash without carrying passengers), the normal $75,000 GST threshold applies.

You can register for GST through the ATO’s GST registration page.

BAS Lodgement

Once registered for GST, you must lodge a Business Activity Statement (BAS) either quarterly or annually. Your BAS reports the GST you collected on fares and the GST credits you can claim on business expenses. Many drivers lodge quarterly because it keeps the paperwork manageable and avoids a large year-end bill.

Tax Year

The Australian financial year runs from July 1 to June 30. For the current 2025-26 tax year, you will lodge your tax return after June 30, 2026.

Vehicle Expenses: Your Biggest Deduction

Vehicle costs make up the largest deduction category for most rideshare drivers. The ATO gives you two methods to calculate your vehicle deduction. You can only use one per vehicle per year.

Method 1: Cents Per Km

The ATO’s cents per km rate for 2025-26 is 88 cents per kilometre, with a cap of 5,000 business kilometres per year. That gives you a maximum deduction of $4,400. You can read more about how the ATO cents per km method works.

Pros: Simple. No need to keep every fuel receipt.

Cons: The 5,000 km cap is low for most rideshare drivers. If you drive 30,000 business kilometres a year, you are leaving thousands of dollars on the table.

Method 2: Logbook

The logbook method lets you claim the actual business-use percentage of all your vehicle running costs. There is no kilometre cap. You need to keep a logbook for a continuous 12-week period that records every trip (business and personal). That logbook is valid for five years, as long as your business-use percentage stays roughly the same.

Costs you can claim under the logbook method:

• Fuel and oil
• Registration
• Insurance
• Loan interest (not the principal repayment)
• Tyres
• Servicing and repairs
• Car washes
• Depreciation of the vehicle
• Roadside assistance (for example, RACV or NRMA membership)

Example: Priya’s logbook saves her thousands. Priya drives for Uber in Melbourne and logs about 35,000 km per year, with 75% of those being business trips. Her total car running costs are $12,000. Using the logbook method, she claims $9,000 (75% of $12,000). If she used the cents per km method, she would only claim $4,400. The logbook method puts an extra $4,600 back in her pocket.

For most full-time and even part-time rideshare drivers, the logbook method will produce a larger deduction. Use the SparkReceipt mileage tracker to log your trips automatically and keep records the ATO accepts.

$20,000 Instant Asset Write-Off

If you buy a vehicle (or any asset) for your rideshare business, you may be able to deduct the business-use portion of the cost immediately under the instant asset write-off. For the 2025-26 financial year, the threshold is $20,000 per asset (available until June 30, 2026).

For example, if you buy a used car for $18,000 and your logbook shows 70% business use, you can claim $12,600 as an immediate deduction. This applies to other assets too, like a dashcam, phone, or tablet mount.

Complete Rideshare Driver Deductions Checklist

Beyond vehicle costs, rideshare drivers can claim a wide range of business expenses. Here is the full list.

Phone and Data

• Monthly phone plan (business-use percentage)
• Phone purchase cost (business-use percentage, or full cost if under the instant asset write-off threshold)
• Phone mount or cradle
• Data costs if you use a separate data plan for driving

You need to work out the business-use percentage of your phone. If you use your phone 60% for rideshare work and 40% for personal use, you claim 60% of the cost.

Commissions and Fees

• Uber service fees and commissions
• Platform subscription fees (for example, Ola or DiDi)
• Payment processing fees

These are usually deducted from your earnings before you receive payment. They still count as tax deductions. Check your annual tax summary from each platform.

Insurance

• Rideshare-specific insurance or top-up cover
• Public liability insurance
• Income protection insurance (check deductibility with your tax agent)

Cleaning and Maintenance

• Car cleaning supplies (interior wipes, air fresheners, vacuum)
• Professional car detailing
• Floor mats and seat covers purchased for the business

Safety and Comfort Items

• Dashcam
• First aid kit
• Phone charger cables for passengers
• Water bottles and mints for passengers
• Vomit bags (a practical reality of late-night driving)

Technology and Tools

• GPS or navigation app subscriptions
• Accounting or expense tracking software
• Toll costs for business trips
• Parking fees when picking up or dropping off passengers

Professional Services

• Tax agent or accountant fees
• Bookkeeping costs
• Business-related legal fees

Other Deductions

• Sunglasses (if you need them for safe driving during work)
• Roadside assistance memberships
• Union or association fees (for example, Rideshare Drivers’ Association)
• Working With Children Check or other compliance costs required by a platform

What You Cannot Claim

• Fines and penalties (speeding tickets, parking fines)
• The cost of driving from home to your first pickup (this is generally a private trip)
• Personal use of your vehicle
• Clothing that is not a compulsory uniform (a plain shirt does not count)
• Food and drink for yourself during shifts

GST Credits: Getting Money Back on Your Expenses

Because you are registered for GST, you can claim GST credits on your business purchases. When you buy fuel, pay for a car service, or purchase a phone mount, the GST included in that purchase can be claimed back on your BAS.

This is why keeping receipts is critical. To claim a GST credit, you need a valid tax invoice. No receipt, no credit.

Example: Marcus recovers $2,400 in GST credits. Marcus drives for DiDi in Sydney and spends roughly $24,000 per year on business expenses (fuel, servicing, phone, tolls, and insurance). The GST component of those expenses is approximately $2,400. By keeping every receipt and lodging his BAS correctly, Marcus claims that $2,400 back from the ATO. Drivers who lose receipts or skip BAS lodgement leave this money unclaimed.

Snap your receipts with SparkReceipt’s AI receipt scanner right after each purchase. The app extracts the GST amount automatically, so you have clean records ready for your BAS and tax return.

Record Keeping the ATO Accepts

The ATO expects rideshare drivers to keep records for five years. Here is what you need.

For vehicle expenses:

• A valid 12-week logbook (if using the logbook method)
• Odometer readings at the start and end of each financial year
• Fuel receipts, service invoices, and insurance documents

For all other expenses:

• Tax invoices or receipts showing the supplier, date, amount, and GST paid
• Bank or credit card statements as supporting evidence
• Your annual income summaries from Uber, Ola, DiDi, or other platforms

For GST:

• Tax invoices for every purchase where you claim a GST credit
• Records of all GST collected on your fares

Paper receipts fade. Digital copies stored in a receipt management app are accepted by the ATO and are far more reliable. Forward your email receipts to SparkReceipt and they are scanned, categorized, and stored automatically. No more shoeboxes.

How to Maximise Your Rideshare Tax Deductions

1. Choose the right vehicle method. Run the numbers for both cents per km and logbook. Most rideshare drivers benefit from the logbook method.
2. Start your logbook early in the financial year. You need 12 continuous weeks. Do not leave this until May.
3. Scan every receipt on the spot. The ATO does not accept “I think I spent about $50 on fuel.” You need proof.
4. Separate business and personal expenses. A dedicated bank account or credit card for rideshare expenses makes tracking straightforward.
5. Lodge your BAS on time. Late lodgements can result in penalties and missed GST credits.
6. Review your platform tax summaries. Uber, Ola, and DiDi provide annual summaries that break down your income and fees. Cross-check these against your own records.
7. Use a tax agent who understands rideshare. The GST rules for passenger transport are different from standard sole trader rules. A specialist will catch deductions a generalist might miss.

Frequently Asked Questions

Do Uber drivers have to register for GST in Australia?

Yes. If you carry passengers (rideshare), you must register for GST regardless of how much you earn. The normal $75,000 threshold does not apply to passenger transport services. Food delivery-only drivers follow the standard $75,000 threshold. Register through the ATO GST registration portal.

Can I claim my car loan repayments as a tax deduction?

You cannot claim the principal repayment on your car loan. However, you can claim the interest portion of your loan repayments, based on your business-use percentage. Keep your loan statements to separate interest from principal.

What is the ATO cents per km rate for 2025-26?

The rate is 88 cents per kilometre for the 2025-26 financial year, with a maximum of 5,000 business kilometres. That caps the deduction at $4,400 per vehicle.

Can I claim the cost of meals while driving?

Generally, no. The ATO does not allow meal deductions for day-to-day work unless you are travelling overnight or away from home for work. Buying a coffee between rides is a personal expense.

How long do I need to keep my rideshare tax records?

The ATO requires you to keep records for five years from the date you lodge your tax return. Digital copies stored in a receipt management app satisfy this requirement, as long as they are legible and complete.

What happens if I do not register for GST as a rideshare driver?

The ATO can impose penalties for failing to register. You may also owe back-GST on all the fares you have collected since you started driving. Register as early as possible to avoid this. If you have been driving without GST registration, speak to a tax agent about your options.

Keep Every Deduction. Pay Less Tax.

Rideshare driving in Australia comes with real tax obligations, but it also comes with real opportunities to reduce your tax bill. The drivers who come out ahead are the ones who track every expense, keep clean records, and claim everything they are entitled to.

Start by choosing the right vehicle expense method, keeping a logbook, and scanning your receipts as you go. A few minutes of organisation each week can save you thousands at tax time.

Start tracking your rideshare expenses with SparkReceipt for free and have your deductions organised before your next BAS is due.