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

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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 own Business Activity Statements (BAS), and maximising your deductions at tax time.

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But many Uber drivers are unsure what they can claim—and what might trigger an ATO audit. In this comprehensive guide from Trinity Accounting Practice, we’ll walk you through everything you need to know about claiming tax deductions as a rideshare driver, based on up-to-date ATO guidance and industry best practices.

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👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!
📅 Booking Link https://calendly.com/ramy-hanna

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Who This Guide Is For

This blog is for anyone working as:

• UberX, Uber Comfort or UberXL drivers
• Uber Eats delivery drivers
• Drivers for DiDi, Ola, Shebah, Bolt, and other rideshare services
• Food delivery couriers using cars, bikes, or scooters

If you're earning income through a rideshare or delivery platform in Australia, you need to know your tax obligations—and how to reduce your tax legally.

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How the ATO Treats Uber Drivers

The Australian Taxation Office (ATO) classifies Uber drivers as sole traders. This means:
✅ You must have an ABN (Australian Business Number)
✅ You must register for GST even if you earn under $75,000
✅ You must lodge quarterly BAS
✅ You need to declare your income and claim deductions on your annual tax return

For source information, see:

• ATO Rideshare Income Guide: https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Ride-sourcing/

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Top Tax Deductions for Uber Drivers

Here’s a snapshot of what expenses you can claim:

• Car running costs (fuel, servicing, insurance, etc.)
• Depreciation of your vehicle
• Mobile phone costs
• Tolls and parking
• Cleaning costs
• Safety equipment
• Rideshare commissions & fees
• Work-related subscriptions and training

Let’s explore each category in detail.

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Car Expenses: The Biggest Deduction Category

There are two ways to claim car expenses for tax:

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1. Logbook Method (most accurate and often more beneficial)

• Track your Uber-related trips for 12 continuous weeks
• Record odometer readings and purpose of each trip
• Determine your business-use percentage
• Apply this percentage to actual car costs:
  • Fuel
  • Registration
  • Insurance
  • Servicing
  • Repairs
  • Tyres
  • Car washes
  • Depreciation (based on car value)

This is the most thorough method. The ATO accepts logbooks valid for 5 years if your usage stays consistent.

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2. Cents-per-Kilometre Method (simpler, but capped)

• Claim 85 cents per km (2023–24 rate)
• Max 5,000 business km per year
• No logbook needed, but you must have reasonable estimates

Source: ATO Vehicle Expenses:
https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/vehicle-and-travel-expenses/

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Other Deductible Business Costs

Besides car expenses, you can also claim:

✅ Mobile Phone & Internet

If you use your phone for Uber notifications, maps, customer contact, and apps, you can claim a percentage based on your business usage.

✅ Tolls & Parking

Only claim tolls and parking fees incurred while driving for Uber, not for personal use.

✅ Rideshare Platform Fees

Uber, DiDi, Ola and others take a service fee. These are 100% deductible.

✅ Safety & PPE Equipment

• Phone holders
• First-aid kits
• Dash cams
• Sanitisers and masks
• Protective gloves
  All considered valid business expenses.

✅ Bank Fees

If you have a dedicated account for your Uber income, the associated bank fees may be claimed.

✅ Accounting Fees

Tax agent or accountant costs for managing your Uber income are deductible.

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Keeping Records: What the ATO Requires

To support your claims, the ATO requires:

• Receipts and invoices for all expenses
• A valid logbook (if claiming that method)
• Summary of Uber trips and income
• BAS lodgment confirmations
• Fuel receipts
• Phone bill statements

Keep digital copies via apps or cloud folders—ATO accepts digital recordkeeping.

Recommended tools:

• Uber monthly tax summaries
• MyDeductions (ATO app)
• Excel or cloud spreadsheet
• Xero or QuickBooks (Trinity can help you set up!)

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GST and BAS Obligations

All Uber drivers must register for GST—even if they earn under the usual $75,000 threshold.

You must:

• Lodge quarterly BAS
• Pay 10% GST on gross fares
• Claim GST credits on eligible expenses

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Claimable GST

You can claim GST on:
✅ Fuel
✅ Servicing & parts
✅ Car insurance
✅ Tolls
✅ Phone plans
✅ Uber fees (if GST applies)

Trinity Accounting can lodge your BAS on time every quarter and help you avoid penalties.

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Common Mistakes to Avoid

Here are key red flags to watch for:

❌ Claiming 100% car use when you also drive personally
❌ Not keeping a valid logbook
❌ Failing to register for GST
❌ Forgetting to claim Uber’s platform fees
❌ Claiming private trips or parking fines
❌ Ignoring ATO income-matching (ATO gets your Uber income directly!)

The ATO uses data-matching technology and will flag inconsistencies between your Uber earnings and tax lodgment.

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Why Work with Trinity Accounting Practice

We help Uber drivers:
✔ Register for GST and ABN
✔ Set up Xero to track income and expenses
✔ Lodge accurate BAS
✔ Maximise tax refunds and legal deductions
✔ Avoid ATO audits
✔ Understand car depreciation and logbook requirements

We specialise in working with rideshare drivers across NSW and Australia-wide.

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Book a Free Tax Chat Today

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!
📅 Booking Link https://calendly.com/ramy-hanna

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FAQs

Q1: Do I need to declare all Uber income?
Yes. The ATO receives your rideshare income directly from Uber and will match it against your return.

Q2: Can I use the cents-per-kilometre method if I also use the car for personal trips?
Yes, if you don’t want to keep a logbook, but it limits your claim to 5,000 km/year.

Q3: Can I claim part of my car loan repayments?
You can’t claim repayments, but you can claim interest and depreciation.

Q4: Is Uber Eats different from UberX for tax?
No, both are considered sole trader work. The same GST and deduction rules apply.

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

Final Thoughts

Driving for Uber or delivering for Uber Eats? Don’t leave money on the table. Understanding your allowable deductions can help you keep more of your hard-earned income and avoid ATO headaches.

At Trinity Accounting Practice, we offer personalised support to rideshare drivers. Whether you need help setting up your GST, calculating your logbook percentage, or lodging your BAS and tax returns—we’re here for you.

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