Tax Deductions for Rideshare & Delivery Drivers (2025–26)

Updated for the 2025–26 income year, with 2026–27 changes noted. Reviewed 19 October 2026.

If you drive for Uber, DiDi, Ola or another platform, or deliver food and parcels through apps, you're running a business. That means income tax on your profit, and for rideshare (taxi travel) drivers, GST from the first trip. This guide explains the rules and the deductions you can claim.

ABN, GST and BAS: rideshare vs delivery

• Rideshare (carrying passengers): you need an ABN and must register for GST from your first trip, regardless of how much you earn. You pay GST on your fares, lodge BAS, and must give a tax invoice for fares over $82.50 (GST-inclusive) if the passenger asks.
• Food and parcel delivery: you need an ABN, but you only have to register for GST once your GST turnover reaches $75,000 a year (you can choose to register earlier).
• Quarterly BAS are due 28 October, 28 February, 28 April and 28 July (later dates may apply if lodged through a registered agent).
• Platforms report your earnings to the ATO under the Sharing Economy Reporting Regime (rideshare since 1 July 2023, other platform transactions since 1 July 2024), so the ATO can match your income.

What you can claim

Car expenses

• Logbook method: keep a 12-week logbook to work out your business-use percentage, then claim that percentage of fuel, servicing, tyres, registration, insurance, interest on a car loan, lease payments and depreciation. The car cost limit for depreciation is $69,674 for 2025–26.
• Cents per km: 88c per km for 2025–26 (91c for 2026–27), up to 5,000 business km per car. Most full-time drivers exceed this, so the logbook method usually suits them better.
• Business kilometres include driving with passengers or orders and driving between jobs while logged on; private trips are excluded.

Other costs

• Platform service fees and commissions (usually shown on your weekly statements).
• The business portion of your phone and data plan, and phone mounts and chargers.
• Cleaning and car washes, bottled water or mints for passengers, insulated delivery bags.
• Tolls and parking while working (not fines).
• Accounting and BAS preparation fees.
• For GST-registered drivers: GST credits on the business portion of purchases (you need tax invoices for purchases over $82.50).

What you can't claim

• Private use of your car or phone.
• Speeding, parking or traffic fines.
• Meals and drinks for yourself while working.
• Clothing, unless it's protective or a compulsory registered uniform.
• The full purchase price of the car in one go – it's depreciated (although small business concessions may apply; ask us).

Record keeping

• Keep weekly platform statements, a 12-week logbook (repeat at least every 5 years, or sooner if your use changes), odometer readings, fuel and service receipts, and tax invoices.
• Keep records for 5 years.
• Remember to put money aside for GST and income tax – there's no PAYG withholding on driver earnings.

Worked example

All figures below are example figures only, for a hypothetical rideshare driver.

Alex earns $44,000 in rideshare fares (GST-inclusive, example figure) in 2025–26. GST is 1/11 of that: $4,000. Alex's 12-week logbook shows 75% business use. Car running costs total $11,000 including GST (example figure), so the business portion is $8,250, which includes $750 of GST credits. Platform fees are $11,000 (example figure; check your statements for how GST is shown).

• GST payable on fares: $4,000, less GST credits (car $750 plus any GST on fees and phone) – paid through BAS.
• Income tax: fares excluding GST ($40,000) less deductions excluding GST credits (for example $7,500 car + $11,000 fees + phone and other costs).

Getting the GST and logbook right makes a significant difference to the final tax bill. This is where a registered agent helps.

Common mistakes to avoid

• Not registering for GST from day one (ride-share).
• Claiming 100% of car costs with private use.
• Ignoring platform data reported to the ATO.

Checklist before you lodge

• Check your income statement in myGov is marked 'tax ready' and every allowance is included.
• Remove any expense your employer paid for or reimbursed.
• Apportion anything used privately and keep a note of how you worked out the percentage.

When to see an accountant

Talk to a registered tax agent if:

• you're unsure whether an expense is private or work-related, or your claims are much higher than last year;
• you have an ABN, side business or rental property as well as your job;
• you have received an ATO letter, review or amended assessment.

ATO sources for this guide

• ATO: Ride sourcing
• ATO: Registrations
• ATO: Sharing economy reporting regime
• ATO: Registering for GST
• ATO: How gst applies when providing services
• ATO: Cents per kilometre method
• ATO: Cents per kilometre method
• ATO: Car thresholds
• ATO: BAS due dates
• ATO: Records you need to keep
• ATO: Copyright notice

This guide is written in our own words. It draws on information published by the Australian Taxation Office, and some short phrases are quoted with attribution. Source material: © Australian Taxation Office for the Commonwealth of Australia. Top Accountants is not endorsed by, or affiliated with, the ATO.