Tax Deductions for Uber & DiDi Drivers in Australia 2026

Driving for Uber or DiDi can be good money, but at tax time it works very differently from a normal job. You are running a small business, you must have an ABN, and, uniquely, you have to register for GST from your very first dollar of fares. The upside is a long list of deductions, your car, fuel, phone, platform fees and more, that can dramatically cut your tax. This is the complete, ATO-aligned guide to tax deductions for Uber and DiDi drivers in Australia for 2026, including GST, BAS and exactly what you can and cannot claim.

We cover how rideshare tax works, the two ways to claim your car, every other deduction, how GST and your BAS work, and the records you need, with the traps the ATO watches closely.

This is general information, not personal tax advice. Rideshare tax can be complex, so consider a registered tax agent for your situation.

TL;DR: Uber & DiDi Driver Tax

As a rideshare driver you are a sole trader: you need an ABN and must register for GST from your first dollar, with no $75,000 threshold. You charge GST on fares (one eleventh of what you earn) and claim GST credits on expenses through a quarterly BAS. You can claim the work-use share of your car (fuel, rego, insurance, servicing, depreciation) via a logbook or 88c per kilometre, plus phone, platform service fees, cleaning, tolls, parking and passenger amenities. Keep records, because the ATO data-matches directly with Uber and DiDi.

How Rideshare Tax Works

The moment you start driving for Uber or DiDi, the ATO treats you as running a business. That means three things are compulsory: an ABN, GST registration, and lodging a BAS. Your fares are business income, and you report your net profit (income minus deductions) in your tax return, where it is taxed at your normal marginal rate.

The Three Golden Rules

What This Guide Covers

• Car and vehicle expenses, the biggest deduction, and how to claim them
• Phone, platform fees, cleaning, tolls, parking and passenger amenities
• GST and your BAS, explained simply
• What you cannot claim, and the records the ATO expects

New to driving? See our guides to Uber driver earnings and the DiDi driver commission rates, and if you also deliver food, our food delivery guide.

Car and Vehicle Expenses: Your Biggest Deduction

Your car is by far your largest rideshare expense, so getting this right matters most. As with any vehicle claim, you choose one of two methods, and you can only claim the work-related share.

Most regular rideshare drivers are far better off with the logbook method, because the 5,000 km cap on cents-per-kilometre is quickly exceeded and the logbook captures your real costs. Under the logbook method you can claim the work-use portion of:

• Fuel or charging
• Registration and CTP insurance
• Comprehensive insurance
• Servicing, repairs and tyres
• Interest on a car loan, or lease payments
• Depreciation (decline in value) of the car
• Car washes and detailing

If you bought a car mainly for rideshare, you claim its decline in value over time on the business-use portion, and eligible sole traders may be able to use the instant asset write-off for a vehicle under the threshold. You cannot simply deduct the full purchase price of a car you also use privately. Curious about total running costs? Our guide to car ownership costs in Australia breaks them down.

Other Deductions Beyond the Car

The car is the big one, but a string of smaller deductions add up fast over a year of driving. Here is the quick reference for what else you can claim.

Keep in mind the work-use rule still applies: your phone, for example, is only deductible for the share you use for driving, not your personal calls and social media. A simple month-long usage record sets a reasonable percentage. Estimate your overall position with our Australian tax calculator.

GST and BAS Made Simple

GST is the part that confuses most new rideshare drivers, but the idea is simple. Because you registered for GST from day one, your fares include GST, and you also get GST back on your expenses. You square it up with the ATO through your BAS.

• GST on fares: one eleventh of your gross fares is GST you have collected for the ATO.
• GST credits: one eleventh of your GST-inclusive expenses (fuel, servicing, platform fees, phone) comes back to you.
• Your BAS: you report GST collected minus GST credits, and pay the difference (or get a refund), usually each quarter.

Here is a simple quarterly example.

Remember GST and income tax are separate. GST is settled through your BAS during the year; income tax is calculated on your profit (fares minus deductions) in your annual return and taxed at your marginal rate. Many drivers use accounting software or an agent to handle both, and those fees are themselves deductible.

What Uber & DiDi Drivers Cannot Claim

The simple test is the same as for any business: if a cost is genuinely for earning your rideshare income, you paid it, and you can prove it, you can claim the work-related share. Private, personal or already-credited costs are out.

Records and How to Lodge

Records are non-negotiable for rideshare, because the ATO data-matches directly with the platforms and already knows your gross income. Keep your platform tax summaries, a 12-week logbook, and receipts for every expense, and use the ATO myDeductions app to capture them through the year. Hold all records for five years.

There are two lodgements to stay on top of. Your BAS reports GST, usually each quarter. Your annual tax return reports your rideshare profit (fares minus deductions) in the business section, taxed at your marginal rate. Our step-by-step guide to lodging your tax return helps with the annual side, and many drivers use a registered tax agent to handle both, since their fee is deductible.

Driving is a flexible way to earn, and claimed correctly your deductions can offset a large share of your fares. Sort your ABN and GST from day one, keep a clean logbook, claim everything you are genuinely entitled to, set aside your GST, and lodge on time. For more on the work itself, see our guides to Uber earnings and food delivery jobs, and for other roles, our checklists for tradies and nurses.

Frequently Asked Questions

Final Thoughts

Rideshare driving comes with real tax obligations, but also generous deductions that most new drivers underclaim. Get your ABN and GST sorted from day one, choose the car-expense method that suits you, track every deductible cost, and lodge your BAS on time. Do that and you will keep far more of what you earn, and stay on the right side of the ATO, which already knows what Uber and DiDi paid you.