• 06 July, 2024

Uber Eats Tax Guide Australia: What Delivery Drivers Need to Know

The number of Australians working as delivery drivers through platforms like Uber Eats, DoorDash, and Menulog continues to grow. While this type of work offers flexibility and income opportunities, it also comes with important tax obligations.

If you are a delivery driver, understanding your tax responsibilities is essential to stay compliant with the Australian Taxation Office (ATO), avoid penalties, and maximise your deductions.

Income Reporting (ATO Requirements)

All income earned as a delivery driver is considered assessable income.

This includes:

• Payments from Uber Eats, DoorDash, and Menulog
• Tips received from customers

It does not matter whether you work part-time or full-time — all income must be declared in your tax return. Keeping accurate records of your earnings is essential to ensure correct reporting.

ABN Requirement

Delivery drivers are generally considered independent contractors, not employees.

This means:

• You must have an Australian Business Number (ABN)
• You are responsible for managing your own taxes
• You must lodge your own tax return

If you do not already have an ABN, you can apply for one through the Australian Business Register.

GST Obligations

When GST Applies

GST registration is required if your annual turnover exceeds $75,000.

• If you only do food delivery, GST may not be required under this threshold
• If you provide rideshare services (e.g., Uber driving), GST registration is mandatory regardless of income

Mixed Activities (Important)

If you do both ridesharing and food delivery:

• GST applies to all your business income
• You will need to lodge Business Activity Statements (BAS)

Maintaining clear and separate records is critical in this situation.

Tax Deductions for Delivery Drivers

What You Can Claim

You may be able to claim the following work-related expenses:

• Platform fees and commissions
• Fuel, repairs, and vehicle maintenance
• Tolls and parking fees
• Work-related phone expenses
• Delivery-related insurance
• Safety gear such as vests and gloves
• Accountant or tax agent fees

 

What You Cannot Claim

You cannot claim:

• Platform fees and commissions
• Fuel, repairs, and vehicle maintenance
• Tolls and parking fees
• Work-related phone expenses
• Delivery-related insurance
• Safety gear such as vests and gloves
• Accountant or tax agent fees

Importance of Record Keeping

Accurate record keeping is essential for claiming deductions and staying compliant.

You should maintain:

• Receipts and invoices
• Bank statements
• Income summaries from delivery platforms

It is also recommended to keep a logbook to track work-related vehicle usage, including dates and kilometres travelled.

How to Manage Your Taxes

Save for Tax

It is recommended to set aside approximately 30% of your income for tax purposes.

Using a separate bank account can help you manage this effectively and avoid unexpected tax bills.

Lodge Your Tax Return on Time

Ensure that:

• All income is reported
• All eligible deductions are claimed
• Deadlines are met to avoid penalties

Superannuation Contributions

As a contractor, you are responsible for your own superannuation.

Making regular contributions can help you build long-term financial security.

Final Thoughts

Tax for delivery drivers can be straightforward if you stay organised.

By tracking your income, keeping proper records, and claiming all eligible deductions, you can reduce your tax liability and avoid compliance issues.

Professional support can also help simplify the process and ensure accuracy.

How WorkPaper Can Help

At WorkPaper, we assist delivery drivers with:

• Tax return preparatioN
• Maximising deductions
• GST registration and BAS lodgement
• Ongoing compliance support

Contact WorkPaper

📞 0485 825 915
📧 info@workpaper.com.au

🌐 https://workpaper.com.au/

📍 7 Bridge St, Werribee, Victoria 3030 Australia