Gig Economy Tax Guide: What Every Uber, DoorDash & Deliveroo Driver Needs to Know

If you've ever finished a delivery shift, checked your earnings, and thought "I'll figure out the tax stuff later"—you're not alone. Most gig workers do exactly that. Until they get a letter from the ATO.

Here's the thing: the ATO now receives data on every dollar you earn through platforms like Uber, DoorDash, Menulog, Deliveroo, and Airtasker. They know what you made. The question is whether you've declared it—and claimed what you're entitled to.

This guide covers everything Australian gig workers need to know: ABN requirements, GST rules, what you can claim, and the traps that trigger audits. No jargon, no fluff—just the rules that actually matter.

The ATO Knows Exactly What You Earned

Let's start with the uncomfortable truth.

Since July 2024, the Sharing Economy Reporting Regime (SERR) requires all gig platforms to report your earnings directly to the ATO. This isn't optional. Uber, DoorDash, Menulog, Deliveroo, Airtasker—they all report twice a year.

What gets reported:

Your name, ABN, date of birth, address
Email and phone number
Bank account details
Total payments for the period

The first reports covering July–December 2024 were submitted in January 2025. If you didn't declare that income on your tax return, the ATO's data-matching systems will flag it.

The bottom line: You can't hide gig income anymore. The ATO receives the same figures you see in your driver app. If there's a mismatch between what the platform reported and what you declared, expect a please explain—or worse.

Do You Need an ABN?

Yes. If you're earning income through any gig platform as a contractor (not an employee), you need an Australian Business Number.

According to the ATO, you must have an ABN to receive payments from platforms like Uber, DoorDash, and Deliveroo. Without one, the platform may withhold tax at the top marginal rate (47%).

Getting an ABN is free and takes about 10 minutes. You can apply through the Australian Business Register. Choose "sole trader" as your business structure unless you have a specific reason for something more complex.

⚠️ Common trap: Some drivers register for an ABN but never lodge a tax return as a sole trader. The ATO sees this—and it's a red flag. If you have an ABN, you must declare your business income every year.

The GST Question: Rideshare vs. Food Delivery

Here's where it gets confusing. The GST rules are different depending on what you do.

Rideshare Drivers (Uber, Ola, DiDi)

If you provide ride-sourcing services—that's taxi-style transport for passengers—you must register for GST from day one. No threshold. Even if you earn $50 in your first week, you're legally required to be GST registered.

Why? The ATO treats ride-sourcing the same as taxi services. It's been this way since 2015.

This means:

You charge GST on every fare (Uber handles this automatically)
You lodge BAS statements (monthly or quarterly)
You can claim GST credits on business expenses

Food Delivery Drivers (UberEats, DoorDash, Menulog, Deliveroo)

Food delivery is different. You only need to register for GST if your annual turnover exceeds $75,000. Below that threshold, GST registration is optional.

Most casual delivery drivers earn well under $75,000 per year from deliveries alone—so GST registration isn't required.

The Hybrid Problem

Here's the trap nobody warns you about.

If you drive for Uber (passengers) AND deliver for UberEats (food), you must register for GST because of the rideshare component. And once you're GST registered, that registration applies to all your business activities—including food delivery.

Activity	GST Required?
Rideshare only (Uber, DiDi)	Yes – from day one
Food delivery only	Only if turnover exceeds $75,000
Both rideshare + delivery	Yes – GST applies to everything

If you're not sure: Check your current GST registration status via your myGov account linked to the ATO. If you're doing rideshare and not registered, fix that immediately—penalties and interest apply.

What Can You Claim? (The Real List)

This is where gig work actually has an advantage. Because you're self-employed, you can claim legitimate business expenses against your income.

Vehicle Expenses (Your Biggest Deduction)

You have two options:

Option 1: Cents Per Kilometre

For 2024–25, the rate is 88 cents per kilometre, capped at 5,000 km per year. That's a maximum deduction of $4,400.

No logbook required
You need a reasonable basis for calculating work kilometres (app data, delivery records)
Covers fuel, registration, insurance, depreciation—everything

Option 2: Logbook Method

If you drive more than 5,000 km for work—or want to claim a higher percentage—you need a valid logbook.

The ATO requires a 12-week logbook showing:

Date of each trip
Odometer readings (start and end)
Kilometres travelled
Purpose of the trip

Once you have a valid logbook, it's good for 5 years. You calculate the business-use percentage and apply it to all car expenses: fuel, servicing, insurance, registration, tyres, depreciation.

Which is better? If you're driving 50+ hours per week, the logbook method almost always gives you a bigger deduction. If you're casual (under 5,000 km/year), cents per kilometre is simpler.

⚠️ Common trap: Claiming 100% of vehicle expenses when you also use the car personally. The ATO knows this isn't realistic. A 60–80% business use claim is more defensible than 100%.

Phone and Data

You can claim the work-related portion of your mobile phone and data costs. The driver app runs constantly, GPS uses data, and you need your phone for navigation.

How to calculate:

Keep a 4-week diary of phone usage
Calculate the percentage used for work
Apply that percentage to your annual phone/data bills

Shortcut: If your work use is minor, you can claim up to $50 without detailed records—based on $0.75 per work call and $0.10 per text.

Other Deductible Expenses

Expense	Deductible?	Notes
Platform fees/commissions	Yes	The cut Uber/DoorDash takes from your fares
Tolls (while working)	Yes	Keep records or use app data
Parking (while working)	Yes	Only while actively delivering
Safety gear (hi-vis, etc.)	Yes	Must be for work purposes
Insulated delivery bag	Yes	Required equipment for food delivery
Bike/scooter costs	Yes	Same rules as car (logbook or per-km)
Sunglasses (if needed)	Yes	Only if necessary for driving safely
Accounting fees	Yes	Cost of preparing your tax return
Phone holder/mount	Yes	Work-related equipment

What You Cannot Claim

The ATO explicitly disallows these:

Fines and penalties (parking tickets, speeding fines)
Regular clothing (jeans, t-shirts—even if worn for work)
Meals during shifts (your lunch is personal, not business)
Travel from home to your first job (that's commuting, not work travel)
Personal use portion of anything (split car use, phone use, etc.)

Superannuation: The Gap Nobody Talks About

Here's the uncomfortable reality: gig platforms don't pay super for you.

Unlike employees, self-employed gig workers aren't entitled to the 12% superannuation guarantee. You're responsible for your own retirement savings.

Why this matters: According to ATO data, self-employed Australians approaching retirement have roughly half the superannuation balance of employees. Years of gig work without super contributions compound into a significant retirement shortfall.

What you can do:

Make voluntary contributions to your super fund (concessional or non-concessional)
Claim a tax deduction for personal super contributions (up to $30,000 per year in concessional contributions for 2024–25)
Check if you qualify for the government co-contribution — if you earn under $60,400 and make after-tax contributions, the government adds up to $500

Most gig workers put super in the "too hard" basket. Don't. Even $100 per week into super is better than zero—and it's tax-deductible.

PAYG Instalments: Avoid the Year-End Shock

If your gig income is substantial, you might end up in the PAYG instalment system.

The ATO automatically enters you into PAYG instalments if you have:

Instalment income of $4,000 or more, AND
Tax payable of $1,000 or more on your last return

This means you'll pay tax throughout the year (quarterly) rather than one massive bill at tax time. It's actually helpful—spreading payments avoids the shock of a $5,000+ tax bill in October.

Two calculation methods:

Instalment amount — Fixed dollar amount each quarter based on last year's income
Instalment rate — Percentage applied to actual income each quarter (better if income fluctuates)

If your gig work is irregular (busy one quarter, quiet the next), the instalment rate method gives you more accurate payments.

The Audit Triggers: What the ATO Looks For

The ATO has publicly stated that gig economy compliance is a priority. Their data-matching programs specifically target:

Income not declared — Platform reported $25,000, you declared $18,000
Excessive deductions — Claiming $15,000 in car expenses on $30,000 income
No GST registration when required — Doing rideshare without being registered
Inconsistent patterns — Big income swings with no explanation

Red flags that trigger reviews:

Claiming 100% business use on a vehicle
Deductions that exceed 50% of gross income
No records to support claims
Years of ABN income with no tax returns lodged

⚠️ The ATO's approach has changed. They used to be lenient with first-time mistakes. Now, penalties and interest are applied more consistently. The safe play is getting it right the first time.

Penalties You Want to Avoid

As of July 2025:

Offence	Maximum Penalty (Individuals)
Failure to lodge on time	$1,650 (5 penalty units)
Making a false statement	75% of the tax shortfall
Reckless disregard	50% of the tax shortfall
Failure to keep records	$1,650 per offence

And from 1 July 2025, General Interest Charge (GIC) on unpaid tax is no longer tax-deductible. You pay the full cost.

The lesson: Lodge on time, declare everything, and keep records. The cost of compliance is far lower than the cost of getting caught.

What You Should Do Now

1. Check Your Platform Income Statements

Log into each platform (Uber, DoorDash, Menulog, etc.) and download your annual tax summary. Verify these match what you plan to declare. The ATO already has these figures.

2. Confirm Your GST Status

If you do any rideshare work, you must be GST registered. Check your registration via myGov → ATO → Manage → Registrations. If you're not registered and should be, fix it now—voluntary disclosure reduces penalties.

3. Get Your Records in Order

For vehicle expenses: either track kilometres properly or start a logbook. For phone/data: keep bills and a 4-week usage diary. For everything else: keep receipts digitally (the ATO app has a receipt capture feature).

4. Set Aside 25–30% for Tax

Unlike employees, no tax is withheld from gig earnings. The ATO recommends setting aside 25–30% of gig income for tax. Put it in a separate account. Don't touch it until tax time.

5. Consider Voluntary Super Contributions

Even $50–$100 per week into super makes a difference over decades. It's also tax-deductible. Set up automatic transfers so you don't have to think about it.

The Bottom Line

The gig economy offers flexibility, but it comes with real tax obligations. The ATO now has visibility into every dollar you earn. The platforms report it. The data-matching catches discrepancies.

The good news? If you're organised, you can claim legitimate deductions that reduce your tax bill significantly. Vehicle expenses alone can be worth $4,000+ per year.

The key is treating your gig work like a business—because that's exactly what it is.

Get an ABN. Understand your GST obligations. Keep records. Claim what you're entitled to. Set aside money for tax. And don't ignore super.

Do those things, and you'll stay on the right side of the ATO while keeping more of what you earn.

Sources & Further Reading

Disclaimer: This article provides general information only and does not constitute tax advice. Gig economy tax rules are complex and individual circumstances vary. For advice specific to your situation, consult a registered tax agent or accountant. Tax rules change—always verify current rates and thresholds with the ATO before making decisions.