What Can Uber Drivers Claim for Tax in Australia?

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What Can Uber Drivers Claim for Tax in Australia? A Complete Guide to Maximising Your Deductions

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Introduction: Tax Rules for Uber and Rideshare Drivers
If you're an Uber driver in Australia, you're considered a sole trader running your own business. That means you're responsible for tracking your income, lodging your Business Activity Statements (BAS), and claiming legal deductions.

But many Uber drivers are unsure what they can claim—and what might trigger an ATO audit. This guide from Trinity Accounting Practice explains everything rideshare drivers need to know to stay compliant and maximise their tax refund.

Who This Guide Is For
This blog is for anyone earning money through:

• UberX, Uber Comfort or UberXL
• Uber Eats
• DiDi, Ola, Shebah, Bolt
• Food delivery using cars, bikes, or scooters

If you’re earning income via a rideshare or delivery platform, this applies to you.

How the ATO Classifies Rideshare Drivers
The ATO treats you as a sole trader, which means:

• You must have an ABN
• You must register for GST—even if earning under $75,000
• You must lodge quarterly BAS
• You must declare income and expenses in your tax return

Top Tax Deductions for Uber Drivers
Here are the most common deductible expenses:

• Fuel and car servicing
• Car insurance and registration
• Car depreciation
• Tolls and parking
• Mobile phone and internet
• Car cleaning and PPE
• Uber or rideshare platform fees
• Accounting and tax agent fees

Let’s break these down further.

Car Expenses: Logbook Method vs Cents-per-Kilometre

1. Logbook Method
The most accurate and often most beneficial method.

How it works:

• Keep a 12-week logbook recording trip dates, odometer readings, and business vs personal use
• Apply your business-use percentage to actual expenses

Claimable items include:

• Fuel
• Registration and insurance
• Servicing and repairs
• Depreciation
• Car washes and detailing

This method allows a higher claim if your business use is substantial. The logbook is valid for five years if usage remains consistent.

2. Cents-per-Kilometre Method
Simpler but capped.

• 85 cents/km for up to 5,000 km/year (2023–24 rate)
• No logbook required
• Must have reasonable estimates for work-related travel

Note: You can’t claim other car running costs if using this method.

Other Deductible Business Costs

Mobile Phone and Internet
If used for Uber apps, GPS, or client contact, claim a business-use percentage. Keep phone bills and usage logs.

Tolls and Parking
Claim tolls and parking only when related to rideshare work. Personal parking is not deductible.

Rideshare Platform Fees
Service fees charged by Uber, DiDi, Ola and others are 100% deductible.

Safety Equipment and PPE
Claim expenses like:

• Phone mounts and holders
• First aid kits
• Dash cams
• Hand sanitiser, face masks, gloves

Bank Fees
If using a dedicated business account, bank charges may be deductible.

Accounting and Tax Agent Fees
Any cost for preparing and lodging your tax or BAS can be claimed.

Record-Keeping Requirements

The ATO requires accurate documentation to support your claims. Make sure you:

• Keep receipts and invoices
• Maintain a valid logbook
• Store Uber tax summaries and trip reports
• Record phone and internet usage estimates

Use tools like:

• Uber's monthly tax reports
• ATO’s MyDeductions app
• Xero or QuickBooks (we can help set this up)

GST and BAS Lodgement

GST Obligations
Even if your income is under $75,000, rideshare drivers must register for GST.

You must:

• Charge GST on your fares
• Lodge quarterly BAS
• Pay collected GST
• Claim GST on eligible business expenses

Claimable GST Items Include:

• Fuel
• Car servicing and repairs
• Insurance premiums
• Phone bills
• Uber commissions (if GST applies)

Trinity Accounting Practice can manage your BAS lodgements and ensure you're compliant with ATO rules.

Common Mistakes to Avoid

• Claiming 100% car use when you drive personally
• Forgetting to register for GST
• Using outdated or invalid logbooks
• Ignoring Uber platform fees in your deductions
• Claiming fines, private travel, or personal meals
• Underreporting income (ATO receives Uber data directly)

Why Work with Trinity Accounting Practice

We support rideshare and delivery drivers with:

• GST and ABN registration
• Xero setup and training
• Logbook setup and car depreciation tracking
• BAS lodgement
• ATO correspondence and audits
• Annual tax return preparation

Our team understands the rideshare industry and helps you claim everything you're entitled to—without crossing ATO red lines.

Book a Free Tax Chat Today
https://calendly.com/ramy-hanna

FAQs

Q1: Do I need to declare all Uber income?
Yes. The ATO gets your earnings directly from Uber and compares it to your tax return.

Q2: Can I use the cents-per-kilometre method for part-time work?
Yes. It's valid if you don't want to keep a logbook, but you're capped at 5,000 km/year.

Q3: Can I claim car loan repayments?
No. But you can claim interest and depreciation on the vehicle.

Q4: Is Uber Eats treated differently from UberX?
No. Both are considered sole trader income and follow the same rules.

Q5: Can I claim lease payments if the car is in my name?
Yes, a percentage of lease payments based on business use is deductible.

Final Thoughts

Rideshare and delivery driving offers flexibility—but also comes with complex tax obligations. With the right help, you can avoid mistakes and claim what’s legally yours.

At Trinity Accounting Practice, we’re here to support your success every kilometre of the way.

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