Driving for Uber, DiDi, Uber Eats, Menulog or a similar platform gives you access to real, legitimate tax deductions, but the GST rules are not the same for every type of driving, and that catches a lot of people out early. Here is what actually applies.
If you drive rideshare, Uber, DiDi, Ola or similar, you must register for GST regardless of how much you earn. The normal $75,000 turnover threshold that protects almost every other small business simply does not apply to ride-sourcing, and you need to be registered before your first trip. This has applied since 2015, following a Federal Court decision that found rideshare trips count as taxi travel for GST purposes. Food and parcel delivery, Uber Eats, Menulog, Deliveroo, DoorDash, is different. That work follows the standard $75,000 threshold like any other business. If you do both rideshare and delivery, once you are GST-registered because of the rideshare side, GST applies to both income streams, not just the rideshare portion.
The cents per kilometre method is currently 88 cents per kilometre for the 2025-26 year, capped at 5,000 business kilometres per car per year, which works out to a maximum claim of around $4,400. It is an all-inclusive rate covering fuel, depreciation, servicing and insurance, and does not require separate receipts, though you do need to be able to show how you arrived at the kilometre figure. The logbook method requires a logbook kept continuously for at least 12 weeks, recording the purpose of each trip and odometer readings. Once established, that logbook and its resulting business-use percentage stays valid for five years, unless something changes significantly, like a new car or a real change in how you drive for work. Under this method you claim the business-use percentage of actual costs: fuel, servicing, registration, insurance, depreciation, and loan interest or lease payments.
Platform and service fees charged by Uber, DiDi or the delivery app are fully deductible. Mobile phone and data costs are deductible to the extent they are used for work. Car cleaning, phone mounts and driving accessories, tolls and parking incurred on work trips, and rideshare-specific insurance riders, since many standard car insurance policies exclude commercial ride-hailing or delivery use, are all deductible.
Fines cannot be claimed, ever, even if they were incurred while actively working. Parking and speeding fines are explicitly excluded, regardless of the circumstances. The ordinary trip from home to start your shift is private travel, not work travel, and only becomes deductible once you are actively working, for example after accepting a fare or an order. Everyday clothing is not deductible either, since there is no specific uniform requirement for driving work.
Once GST-registered, you can claim GST credits on the business-use portion of expenses including fuel, tolls, parking, registration, insurance and platform fees. The apportionment has to match your business-use percentage exactly the same way it does for the income tax deduction. If you have claimed a GST credit on an expense, the income tax deduction for that same expense needs to be reduced by the GST amount, so you are not effectively claiming it twice.
Not sure whether you need to register for GST, or want your car expense method reviewed before tax time? Book a free call and we will help you get it set up properly.
Claiming 100% of car costs. Every car expense claim needs to be apportioned for the actual private-use percentage of the vehicle, not the full cost.
Assuming food delivery is GST-exempt entirely. The $75,000 threshold still applies, and it applies immediately if you also do any rideshare driving.
Mixing the cents per kilometre and logbook methods for the same car. You need to pick one method per vehicle per year and apply it consistently.
Estimating business-use percentage instead of keeping a proper logbook. A guessed percentage will not survive an ATO review the way a compliant 12-week logbook will.
Rideshare drivers must register for GST regardless of turnover, while food delivery drivers follow the standard $75,000 threshold. Car expenses can be claimed at 88 cents per kilometre up to 5,000km, or through a proper 12-week logbook and actual costs, along with platform fees, phone costs and rideshare-specific insurance. Fines and ordinary commuting are never deductible.
We help rideshare and delivery drivers get their GST registration and deductions right, with fixed fees agreed upfront. Book your free call here.
This article is general information only and does not take into account your personal circumstances. Please seek advice tailored to your situation before acting.
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