Tax for Food Delivery Drivers & Riders

 

– Tax for UberEats – Tax for Deliveroo – Tax for Foodora –

If you’re a food delivery driver or rider, odds are you’re dealing with ABN’s and GST for the first time, and it can be confusing. We’ve created your complete Food Delivery Guide to Tax, to help you get started and manage the tax on your delivery income.

Uber driver vehicle

 

ABN’s and GST

If You ONLY Deliver Food.

If you’re a food delivery driver you must have an ABN, but you do not have to register for GST.

You may have heard that Uber drivers must register for GST, but that tax law only applies to taxis who drive passengers, not food. As a food delivery driver, normal tax rules apply, and you only need to register for GST if you earn more than $75,000 per year.

You will need to declare your food delivery income and expenses on your end of year tax return, so keeping records is important. More on this below.

If You Deliver Food AND Drive Passengers

This is where things get confusing.

If you drive for UberEats AND UberX, or any do other ridesharing AND food delivery driving, then you must register for GST because of your ridesharing. This is because the ATO considers ridesharing to be a taxi service. Taxi drivers, and therefore all rideshare drivers, must register for GST from the first dollar they earn.

Here’s the catch: your GST registration applies to ALL your business activities, not just the rideshare driving. This means you’ll be paying GST on your delivery income AS WELL AS your ridesharing income.  Of course to offset this you can claim back the GST on your delivery expenses to reduce your GST bill, but you’re still likely to be paying a portion of your delivery earnings to the ATO in GST. This is an unfortunate side-effect of doing both types of driving at once.

 

Got a Letter From The ATO?

It seems that the ATO have been targeting delivery and rideshare drivers through their bank records. If you have deposits into your bank account from a company such as UberEats, Deliveroo, or Foodora, you should assume the ATO knows exactly how much you’ve earned. What’s more, they’re cross-matching this data with the ABN register and sending letters to any driver earning delivery income without an ABN. If you receive one of these, head to the link above to get your ABN for free.

We’ve also heard reports of UberEats drivers receiving letters saying they must register for GST. We suspect that the ATO can’t tell the difference between UberX and UberEats income on the bank records they’re accessing. If you’ve received one of these letters, and you only drive for UberEats, you can contact the ATO and tell them you are a delivery driver, not a rideshare driver, and so the taxi GST rules don’t apply to you. Remember you must have an ABN though.

 

How Do I Get An ABN (and Register for GST)?

If you don’t have an ABN yet, apply for yours FREE with DriveTax. Our free Startup Pack includes your ABN application lodged to the ATO for you (and GST registration if you need it), plus free eBook tax guides and free bookkeeping spreadsheet.  If you’ve been driving for a while that’s okay, we can backdate your application for you as well. Register in just a few minutes here.

 

What Do I Need To Do For Tax?

Keep a Logbook

If you use your car for deliveries, you MUST have a valid logbook to claim your fuel and other car expenses. The logbook is required by the ATO as evidence of the percentage of car expenses you can claim.

Without a logbook, you’ll be restricted to the ‘cents per kilometre method’ to claim your car deductions, which is a maximum deduction of $3,300.  If you drive a lot, this could be much less than your actual expenses, and result in a bigger tax bill.

Here are the essentials of keeping a logbook:

  • It must go for 12 weeks. It’s okay if the 12 weeks go past the 30th of June (e.g. you keep your logbook from May-July). But you must start before the 30th of June for it to count for the current year.
  • You only need to make one logbook entry for each shift/session of driving, you don’t need to record individual deliveries. You also don’t need to record private/non-business trips.
  • You must record the date, and the odometer reading of your car at the start and end of each shift/session of driving.
  • You should start your logbook when you leave home or switch on your delivery app, and stop when you arrive back home or switch off the app. Your kms to and from home, and your kms in between deliveries can all be included.

We recommend the Zions Pocket Logbook, which you can buy from Officeworks for under $7. Using an app is also fine, as long as you are still recording your odometer readings.

If you use a motorcycle or bicycle for deliveries, you will still need to work out what percentage you use your bike for business purposes. However you don’t need to keep a formal 12 week logbook, you may use any reasonable basis to estimate your percentage. We still recommend keeping some kind of log for at least a few weeks to show the ATO how you worked out your percentage.

Keep Records of your Expenses

You’ll also need to keep records of your expenses, so that you can claim these back on your end of year tax return. That can be in a spreadsheet, or just a collection of receipts.

The ATO will accept bank statement records if you don’t have receipts, however if you’re registered from GST you must have a tax invoice for expenses over $82.50 in order to claim for GST.  For expenses where you don’t receive a receipt, such as car washes, you can make a note of the date and amount of the expense yourself, keep a notebook in your glovebox for this.

For more on what tax deductions you can claim, check out our blog post on Tax Deductions for Rideshare Drivers.

For your income, ask if your company will provide you with an end of year summary. If not, you’ll need to collect your income statements/invoices/payslips as well.

Put Aside Money for your Tax Bill

If you make a profit from your driving, you will need to pay tax on that profit, so it’s a good idea to put aside some of your earnings to save for your tax bill. The amount will depend on a variety of factors, such as your marginal tax rate, other income, and your car and running costs, so everyone’s tax bill will be different. But as a very rough rule of thumb, put aside 10-15% if driving is your only source of income, or 20-25% if it is your second job.

Declare Your Income and Expenses on your Tax Return

On your end of year tax return you’ll fill in an additional schedule for your business income and expenses. If you made a profit, you’ll pay tax on your profit at your marginal tax rate.

DriveTax offer specialised tax services for the food delivery industry. You can choose from a phone/skype tax consultation with a food delivery tax expert, or our great value online Express Tax service.  If you’d like help with your tax return, visit our Tax Services page to learn more.  

 

Summary

  • If you haven’t already got one, get your ABN for FREE with DriveTax (and register for GST if you need to)
  • Download our free Tax Info Pack below for more info, tax tips and a free bookkeeping spreadsheet.
  • Keep records, keep a logbook, and put aside savings for tax
  • Need to lodge BAS’s? Visit our BAS Services page
  • Time to lodge your Tax Return? Read more about our Tax Services
  • Follow DriveTax on Facebook to stay up to date with ATO deadlines, tax tips and more.

FREE ABN + GST Registration

Ready to start driving?  Get your ABN for FREE

+ our FREE eBooks and Uber Bookkeeping Spreadsheet

I Need To Register

Follow DriveTax for news, Uber & rideshare tax tips and more…

The information in this article is general in nature and does not take into account your personal circumstances. If you’d like to know how this article applies to you, please contact us to arrange a consultation, or talk to your accountant. 

By | 2018-05-18T18:39:49+00:00 April 12th, 2017|Tax|104 Comments

About the Author:

Hi, I'm Jess. I'm a CPA Accountant and Registered Tax Agent, and I specialise in tax preparation and advice for Uber drivers. As a regular rider in Melbourne, I’ve chatted to many drivers who are facing their first ABN tax return, are confused about their tax obligations, or aren’t sure what to do at tax time. I'm on a mission to relieve the confusion and build a go-to service for Uber drivers across Australia.

104 Comments

  1. Leong July 2, 2017 at 2:38 am - Reply

    Hi

    I am doing Ubereats which means only food delivery. May I know what item I can do tax refund if I use bicycle to work? Like bicycle itself, bicycle accessories or bicycle service expenses…

    • Jess July 3, 2017 at 1:44 am - Reply

      Hi Leong,

      You can claim all of the expenses relating to your bicycle, such as repairs and maintenance and accessories. The ATO does not require you to keep a logbook, instead you must make a reasonable estimate of the percentage your bike is business vs private, and just claim the business percentage.

      The cost of your bike itself can be claimed as depreciation, but under current small business simplified depreciation rules you will usually be allowed to write off the whole cost of the bike in the year you bought it. If you owned the bike before you started delivering for UberEats, then we would do a calculation to see how much your bike depreciated in that time of private ownership, and then claim the written down value you when you started using it for business.

      Jess

  2. Juan July 5, 2017 at 5:12 am - Reply

    Hi!

    We should declare the earnings of the bonus like referring people?

    • Jess July 5, 2017 at 5:21 am - Reply

      Hi Juan, Yes you must declare all money you receive to the ATO. However depending on who you drive for, certain referral payments may not have GST on them. You may need an accountant to advise you. You still must declare them though. Jess

  3. Veronika July 26, 2017 at 12:47 am - Reply

    Hi Jess, I started doing deliveries for UberEats only by bicycle. I bought bicycle on gumtree so it means I dont have any receipt. Can I still claim this bike as an business related expense? And also small accessories like new tubes, tyres – do I need to have all receipts from them? Thank you

    • Jess July 27, 2017 at 2:27 am - Reply

      Hi Veronika,
      You can still claim a deduction for the bike, because your Gumtree account and bank account will provide a paper trail of home much you paid. You’ll be required to estimate the percentage you use the bike for UberEats vs private use. You are required to also have some kind of receipt or record (bank statements are fine) for all other transactions. – Jess

  4. Valeria August 1, 2017 at 8:52 am - Reply

    Hi Jess, I am a food delivery rider working for Uber, using my bicycle. I just received a letter from ATO which says that they believe I’m providing ride-sourcing services and it is a taxi travel under GST law. They also say that I need to register for GST. What should I do?
    Thank you

    • Jess August 3, 2017 at 2:41 am - Reply

      Hi Valeria, the ATO are wrong about that, if you are just doing food delivery and not ridesharing, then you definitely do not have to register for GST. My guess is that Uber have sent them information about all Uber partners, and they haven’t told the ATO who is rideshare and who is food delivery? You can call the ATO to advise them if you want, or you can just disregard the letter. – Jess

  5. Yasir August 8, 2017 at 5:41 am - Reply

    Hi jess,
    I’m very confused with Tax but after reading your article i don’t have any question about GST because you explained exceptionally very well.
    Just a questiom as a UBEREATES driver that
    What is the tax bracket for us.
    Is the tax bracket will remain same either i work on ABN or TFN.
    If i earn 40000 $ in financial year still i need to pay tax as i WORK on ABN.
    THANKS

    • Jess August 8, 2017 at 11:13 pm - Reply

      Hi Yasir,
      Once your UberEats profit (income minus expenses) has been calculated, this is added to the rest of your taxable income (employment, investments, centrelink etc) and all of that income is taxed at the normal marginal tax rates. You can see the tax rates here. So you can see that the tax you pay on your UberEats profit will depend on how much you earn from employment and other income. – Jess

  6. Simone August 11, 2017 at 11:27 pm - Reply

    Hi Jess
    I am not a permanent resident anymore, but I need to pay taxes on my UberEats earnings. How can I get an ABN? I cannot fill in your form to get one for free because I don’t live in Australia. Thank you!

    • Jess August 14, 2017 at 12:31 am - Reply

      Hi Simone,
      You can still go ahead and order, that’s no problem. If you were a resident at the time you were driving then please select resident in the form and we’ll sort it out from there.
      Jess

  7. Mike August 20, 2017 at 4:10 pm - Reply

    Jess,

    Thanks a ton for writing the Getting Started Guide for Uber & Food Delivery.

    Things really get confusing when people drive the taxi as well deliver the food. But your post nails it.

    I just shared this post to one on one of my Whatsapp group.

    Thanks,
    Mike

    • Jess August 20, 2017 at 10:51 pm - Reply

      Thanks for the awesome feedback Mike!

  8. Nicole September 3, 2017 at 1:14 am - Reply

    Im helping my daughter complete her tax return and she has been doing ubereats delivery on her bike. We aren’t sure where to put these income and deduction amounts in the tax return. ….. is this in the sole trader part – or somewhere else? She has no deductions to claim as she paid cash for her bike from Gumtree. We aren’t talking about big amounts, but we still want to do the right thing!!

    • Jess September 3, 2017 at 11:22 pm - Reply

      Hi Nicole,
      Yes you’re right, it must be entered in the sole trader area. The easiest way is to refer to your Monthly Statements, which you can download from her Uber account in the Tax Summaries section. All of the Gross Income items should be entered as income, and the Uber Fees claimed as an expense. I hope this helps! – Jess

  9. Khan September 7, 2017 at 12:20 pm - Reply

    Hi jess, excellent article on gst and tax. I’ve a question. I was driving uber x until last month but now I have started ubereats and not doing any Ridesharing at the moment. like you have explained I’ve to pay gst on both uberx and ubereats for this quarter( July-sep) as there is income from both rideshare and delivery . Now I’m not going to do any Ridesharing anymore so am I exempt from paying gst from next quarter as there would be not rideshare income. Thank you

    • Jess September 11, 2017 at 12:20 am - Reply

      Hi Khan,

      If you are registered for GST then you must pay GST on all your income, even if you didn’t drive for UberX. The ATO just looks at your registration, it doesn’t matter where you earned the money. The only way to avoid paying GST is to deregister for GST, and you can only do that if you won’t be driving for UberX anymore. – Jess

  10. Hoang September 19, 2017 at 12:45 pm - Reply

    Hi Jess
    what if i bought my bike off gumtree and i paid cash for it
    i’m still eligible for tax deduction for my bike?
    thanks.

    • Jess September 20, 2017 at 5:24 am - Reply

      Hi Hoang,
      You can still claim a deduction for the bike if you can provide provide a paper trail of how much you paid, such as the Gumtree ad, or a written receipt. You’ll be required to estimate the percentage you use the bike for UberEats vs private use. If you don’t have any records then you cannot claim a deduction.
      – Jess

  11. Sandy September 29, 2017 at 3:57 pm - Reply

    Hi Jess
    I drove UberX for few timesand earned $2,800 in a year plus 25,000 from other jobs like Security & Cleaning Services.Do i need to pay GST on all my income

    • Jess September 30, 2017 at 4:04 am - Reply

      Hi Sandy,
      You only need to pay GST on your ABN income. If your security & cleaning income was as an employee under your TFN then you don’t need to pay GST. If any of that work was as a contractor under your ABN then you will have to pay GST for the time you were registered for GST.
      – Jess

  12. Patrick October 16, 2017 at 2:01 am - Reply

    Hi Jess,
    I have a full time job with the annual income of ~80 k and I am getting fortnightly salary under my TFN and a PAYG was always generated from my employed. Please, be advised that a certain amount of tax has always been deducted and kept in my PAYG what I claim at the end of my economic year and get the partial refund. Recently, I started working on UberEats for some extra income due to my new mortgage. Now my question is, if I earn ~12 k from UberEats (Under ABN) and 80 k (Under TFN) from my current employer, how my tax assessment will be conducted under this circumstance? Your kind help will be highly appreciated.

    Cheers!
    Patrick

    • Jess October 16, 2017 at 3:24 am - Reply

      HI Patrick,
      I can’t give personalised advice, but speaking in general terms if you already have taxable income of $80k, then any additional income will fall into the following tax brackets: $37k-$87k – 34.5%, $87k-$180k – 39% (these rates include the medicare levy). In other words the first $7k of net income (after expenses) beyond $80k would be taxed at 34.5%, and income beyond that would be taxed at 39%. – Jess

  13. Amar October 18, 2017 at 2:47 am - Reply

    Hi Jess,

    Your article and the Q& A section made me much more clear. In my case, I am going to start Ubereats from next week. I am registered as a bike rider. However, I am doing deliveries via car. I cannot upgrade to car because I have international license. Can I claim car expenses in my business schedule for ubereats?

    Thank you.

    Regards,
    Amar

    • Jess October 18, 2017 at 10:19 am - Reply

      Hi Amar,

      I’m glad you’ve found us helpful! I’m not sure I understand your question, I think you’re asking if you can still claim car expenses even if on your UberEats account you are a bike rider. The answer to this is yes, the ATO don’t care about your account or registration with UberEats. If you spent money as part of earning your income then it will generally be tax deductible regardless of the arrangement between you and UberEats. I hope this is what you wanted to know! – Jess

      • Amar October 19, 2017 at 5:46 am - Reply

        Oh wow! that’s awesome. Thank you very much Jess.

  14. Arsalan October 23, 2017 at 3:02 am - Reply

    Hi Jess,

    Your article was really enlightening and it clears all the confusion I had about GST. Thanks for the wonderful article.

    Just a quick question about tax claim, can a ubereats rider who is an international student can claim medicare levy? If yes, then how much he can claim?

    Thanks again.

    • Jess October 23, 2017 at 3:12 am - Reply

      HI Arsalan,
      Thanks for the great feedback. The Medicare Levy is not something you claim, it is something you pay! This depends on what country you are from plus a few other factors, so I can’t really answer for you here. Please contact us if you would like personalised advice. Thanks! – Jess

  15. Jay Beckett October 30, 2017 at 3:51 am - Reply

    Hi Jess
    Thanks for writing this article its been really helpful! I am a foodora driver and have a small second business that has meant i am registered for gst. However foodora dont include gst on my invoices from them. Should i request my invoices include gst? Surely a large company like foodora is set up for gst?

    Many thanks
    Jay

    • Jess October 31, 2017 at 2:00 pm - Reply

      Hi Jay,

      The GST has nothing to do with Foodora. YOU are registered for GST, therefore you must pay GST on everything you earn, regardless of who you earned it from.

      In terms of the invoice, you first need to remember it’s actually you invoicing them for your time, but they take care of this paperwork for you. Given that most drivers are not registered for GST but a few, such as you, are registered, technically they should have a statement on the invoice that says something like ‘GST is included in this price if applicable’, or something to that effect. If it doesn’t, it means that the invoices they generate are technically incorrect, but it doesn’t change the fact that you are a GST registered business and must pay GST on all your income.

      Foodora’s GST status becomes relevant only when you’re claiming their fees. If they’re an Australian company they’ll be GST registered, which means you can claim GST on any commissions or fees they charge you. Or if they’re a foreign company the won’t be charging GST which means there’s nothing for you to claim back.

      I hope this makes sense! – Jess

  16. Parikshit November 15, 2017 at 5:46 am - Reply

    Hii Jess, im an international student working for ubereats only and on a rental scooter. So according to the article i guess i am not liable to pay the gst right? If i have to pay Gst then can u please tell me the rate of Gst i will be liable to pay and if i can claim the rent amount of the scooter i pay each week for deductions?
    Thank you

    • Jess November 15, 2017 at 6:58 am - Reply

      Hi Parikshit,

      You don’t have to pay GST, but you do have to pay income tax on your end of year tax return. You will be able to claim your scooter rental as deduction. I suggest checking out our blog post on tax deductions for rideshare drivers, as most of the deductions are the same for food delivery drivers. – Jess

  17. Frank December 17, 2017 at 4:53 am - Reply

    Hi, thanks for the article, but I still have a dubt.
    I’m only delivering with uber eats and i earn less than 75,000, I have only ABN, plus i have a casul work (without ABN) so my question is: I need to register for GST?

    Thanks

    • Jess December 17, 2017 at 10:11 pm - Reply

      Hi Frank, if you are not rideshare driving and you will not earn more than $75k on your ABN then you do not have to register for GST. – Jess

  18. jose December 18, 2017 at 11:49 am - Reply

    hi Jess
    i have a question. I’m driving with uber eats and I had around $18k income last 6 months. I’v been working as contractor of star track last 3 months but income is not big. My question is do i need to pay tax on my uber eats income? I understood that I’m not going to pay GST. But what about ABN.

    • Jess December 19, 2017 at 7:25 am - Reply

      Hi Jose,
      You always have to declare all income you earn. If your total taxable income for the whole financial year for all of your jobs is below $18k then you will be below the tax-free threshold so your tax rate will be 0%. But you must declare the income in your tax return to see what the tax rate is. – Jess

  19. Richard December 19, 2017 at 12:59 pm - Reply

    Hi Jess,
    Thanks for the article, it’s actually really helpful. However I still have some enquiries about the tax.
    1. Firstly, I applied for TFN early this year (Probably February). However, I didn’t work at all and I also didn’t sumit a non-lodgement form. Do I need to do it actually?
    2. I signed up for Ubereats rider on February this year. I did only two trips until now. However, I didn’t know we need to have an ABN(so I don’t have it for now as well) for that so I didn’t declare the income (Which is less than $20). I just updated my Uber acc from bike rider to car delivery recently and I haven’t started to do the delivery yet since I am so confused with the income tax stuff. What should I do now?
    3. And for ABN, does it mean that if our income is below $18k in that year, we won’t have to pay any tax but need to sumit the non-lodgement form? Non-lodgement form is for TFN or ABN?
    Apart from this, I don’t have any income at all.
    Hope you can help me with this
    Thanks.
    Richard

    • Jess December 20, 2017 at 2:35 am - Reply

      Hi Richard,
      All riders and drivers must have a TFN and an ABN. If you earn any money at all on an ABN, even just $1, you must lodge a proper tax return and declare your income and expenses, even if you will be below the tax-free threshold. You are not eligible for a non-lodgment form if you earned any business income. I understand that it’s frustrating when you had such a small amount of income, but the ATO is clear on this rule. If you didn’t apply for an ABN we can do this for you for free and backdate it to your Uber start date for you. Here is the link: https://www.drivetax.com.au/gst-registration-form/. – Jess

  20. Ben December 21, 2017 at 11:14 am - Reply

    Hi Jess,

    Great website!! I have found it extremely informative and will use your service for my tax return come July.

    I have a job paying $75,000pa and am also doing food deliveries with UberEATS a few nights a week on my motorbike. I’m keeping aside 35% of my Uber earnings each week for tax. I’m keeping fuel receipts and records of my km’s ridden. Should I be changing my insurance and registration to business and personal rather than just personal? Will that affect what I can claim as deductions?
    Also, apart from putting aside money, keeping fuel receipts and recording km’s, is there anything else I should be doing?
    I have a loan for my bike, am I able to claim anything from that even though it’s listed as a personal use bike?

    Thank you Jess, I look forward to hearing from you.

    Regards,
    Ben

    • Jess December 26, 2017 at 9:46 pm - Reply

      Hi Ben, it sounds like you’ve got everything under control! It doesn’t matter to the ATO whether your insurance is business or private, they will allow a deduction either way. So it’s only a matter of making sure your insurance is correctly set up so your insurance company will cover you. Your interest on the bike can be claimed too, and the same rule applies, the ATO doesn’t care whether it’s listed for business or private use, it will be deductible either way. – Jess

  21. Zulfo December 27, 2017 at 11:23 am - Reply

    Hi Jess, I have just signed for Uber eats bicycle and I have a few questions. Do I need an ABN right away? if yes, what happens if I don’t provide one for a while and continue to do deliveries? will I be taxed on each payroll I get? and how much? Thank You so much, hope to hear from you soon!!

    • Jess December 28, 2017 at 3:02 am - Reply

      Hi Zulfo, Your ABN must be registered back to the first day you start driving for Uber. If you have already started driving that’s okay, you can backdate the ABN application back to your Uber start date. You’ll be taxed on all of your Uber income from the day you started driving at your marginal tax rate. – Jess

      • Zulfo December 28, 2017 at 4:59 am - Reply

        Thank You lots Jess, a very helpful article.

  22. Neell January 4, 2018 at 1:10 am - Reply

    Hi Jess,

    Thanks for your article it is awesome!!!

    I’ve got a question. I’m doing ubereats only and uber is doing the invoices on my behalf, the thing is that they are charging 10% GST on my behalf to the restaurants per my delivery fees.

    I.e a delivery invoice made from Maccas said…

    Total net $ 15.04
    Total GST amount $1.50
    Gross amount $16.54 (this is the amount that they pay to me)

    My invoices say that I have not provided a ABN and when I called uber they said that I don’t need ABN because I’m doing ubereats only. I said I wanted to use my ABN but every time that I tried to provided through the uberdriver app I need to agreed that I’m register for GST as well.

    Is this correct?
    I don’t need to provide my ABN as uber says?
    Is ok that uber charge GST on my behalf?

    Thank you very much for your help in advance

    • Jess January 4, 2018 at 1:30 am - Reply

      Hi Neell, this is very interesting to me. If you are not registered for GST then the invoice they are providing to restaurants on your behalf would be incorrect. I wonder if there is some fine print on the invoice that says that the GST only applies if the driver is registered for GST?? Feel free to email me a copy of the invoice, I’d be curious to take a look for you. Thanks! – Jess

  23. Chavanun Manjaroenporn January 14, 2018 at 9:49 pm - Reply

    Hello Jess

    I do have job make me 350$ a week and I do UBEREAT (bicycle registered, but usually I use motor bike instead)that make around 200$ a week. How can I declare to ATO and how much I pay for them?

    • Jess January 15, 2018 at 6:55 pm - Reply

      Hi Chavanun, I’m sorry I can’t give you personal tax advice. This article explains how to declare your income and pay your tax to the ATO. If you would like a personal calculation of your projected tax liability please feel free to book a consultation via our website. – Jess

  24. David January 25, 2018 at 7:50 am - Reply

    Hello Jess!
    This webpage is the best to get all informations we need 🙂
    I am working full time for a company using my ABN.
    I want to work with deliveroo during my spare time, maybe 4h a week. But I will use my bike only for deliveroo.
    If I have some repairs, equipment or the cost of the bike, should I consider all expenses at 100% of the initial price?
    Or if they consider that a working week is 40h and I use my bike only 4h, I should declare 10% of my expenses ?
    Thank you so much

    • Jess January 25, 2018 at 5:27 pm - Reply

      Hi David, thanks for the great feedback. The tax deduction is based on what percentage you use the bike, not the percentage of your own time. So if the bike is used 100% for Deliveroo with no personal use then you can claim 100% of related expenses. – Jess

  25. Norleyana Abdullah February 9, 2018 at 10:49 pm - Reply

    Hello I am Ubereats rider bicycle how I need to pay my tax when doing Ubereats.

    • Jess February 10, 2018 at 2:36 pm - Reply

      Hi Norleyana, you’d find all of this information in the blog post above, it all applies to bicycle, motorbike and car drivers. – Jess

  26. Veronika February 14, 2018 at 12:24 pm - Reply

    Hi Jess,

    I roughly counted if it would be better for me to use logbook or cents per kilometre method and it will be approximately the same result, so I decided use cents per kilometre method because its easier. I want to ask, if I need any type of records (milage, fuel receipts, etc) to apply this method? Thank you

    • Jess February 14, 2018 at 1:24 pm - Reply

      Hi Veronika, there are no specific requirements on keeping records for the cpkm method. Your total kms can be based on a ‘reasonable estimate’ but you need to be able to show how you worked that out. So for example you may estimate that you drive 200km/wk for UberEats (perhaps keep notes for a week or two to confirm, or refer to your Uber records if they show this), and you drove for 20 weeks of the financial year (easy to prove by your Uber income), and so you can claim 4,000km. – Jess

  27. Ed February 16, 2018 at 10:23 am - Reply

    Hi! I deliver for both ubereats and deliveroo. For deliveroo abn was required but not for ubereats. Since I receive income from both companies, should I treat my delivery business as two different enterprises ?

    • Jess February 16, 2018 at 4:54 pm - Reply

      Hi Ed, the ATO will only give you one ABN for your whole lifetime, and you must use this for both business activities. Even if one of the companies doesn’t ask you for your ABN, you must still have it as an ATO requirement. The ATO requires you to fill this in as one activity in your end of year tax return, but this will be much easier for you anyway, it gets really difficult to separate your car expenses for the two different companies, much easier to just treat them as one. – Jess

  28. Sandra February 16, 2018 at 2:18 pm - Reply

    Hi Jess,

    I’ve gone through all your post, it has been so useful! Thanks a lot for helping all of us 🙂
    I have a question, my boyfriend is using my car to do uber eat. We are sharing the expenses, although payment often come from my account, and he would transfer me. Can he claim these expenses, if I give him a print of my account?

    Thank you!
    Sandra

    • Jess February 16, 2018 at 4:57 pm - Reply

      Hi Sandra, the ATO understands that partners/spouses often share vehicles, so that’s no problem. You will need to keep records of ALL the car’s running costs (fuel, rego, insurance etc), including your use and his private use. Then he will need to keep a logbook to prove to the ATO what percentage the car is used for UberEats. He will then claim that percentage of the car’s total running costs in his tax return. See our blog post on Tax Deductions for Uber Drivers for more tips on keeping a logbook. – Jess

  29. Jitin February 20, 2018 at 1:40 am - Reply

    Hi Jess,

    I started Uber Eats in October 2017 and just applied for ABN wef October 2017. Am I required to file BAS for the last quarter? I haven’t maintained any log book but have the uber partner statement on kms driven. On GST part, it’s clear as per your article that delivery partners don’t need GST till the time income is less than 75k. Thanks. Jitin.

    • Jess February 20, 2018 at 5:18 am - Reply

      Hi Jitin, you only have to lodge a BAS if you are registered for GST. If you are not registered for GST then you do not need to lodge a BAS. – Jess

  30. Min March 22, 2018 at 1:10 pm - Reply

    Hi Jess,

    I heard that from December 2017, UberEats drivers also have to pay GST as they changed the policy. And according to my uber partner profile, I see the GST breakdown on my December tax summary. Does it means we have to register for GST for ubereats as well? Thank you for your time.

    • Jess March 22, 2018 at 3:16 pm - Reply

      Hi Min, UberEats drivers do not have to register for GST, nothing has changed there. What has changed is that Uber are now charging GST on their service fees from the 1st of December. Unfortunately this means the price has gone up a little, but that’s the only difference. Now Uber fees will be just like most of your other expenses, fuel, mobile phone etc. They all have GST charged on them as well, but this doesn’t matter to you because you’re not registered for GST, you just claim the total price as a tax deduction at the end of the year. – Jess

  31. Tony April 7, 2018 at 8:21 am - Reply

    Hi Jess,
    I registered for an ABN and also registered for GST with the plan to do UberX. Since my car doesn’t seem to meet the requirments, I am more than happy to do UberEats as a delivery driver which I will make well under $75k and my other income is PAYG and non ABN related. If I do not de-register myself for GST will this affect anything and is it claimable back if I have overpaid?

    • Jess April 9, 2018 at 2:30 am - Reply

      Hi Tony, although as an UberEats driver you don’t have to register, if you do register anyway you must pay GST on your UberEats income. To put it another way, anyone who is registered for GST must pay GST on all of their ABN income. You should consider cancelling your GST registration back from the date you registered so that you don’t have to pay GST on any of your UberEats income. – Jess

  32. Jason April 14, 2018 at 6:17 am - Reply

    Hi Jess,

    I just want to ask if which of your services do i need to avail If i have 3 jobs? I am working with ubereats using a bicycle and I also have 2 other jobs.

    Also, does the 12 weeks log also apply with bikes?

    Thanks!

    • Jess April 15, 2018 at 10:38 pm - Reply

      Hi Jason, if you’re driving/riding for UberEats only and not doing rideshare then your only obligation is to declare your food delivery income on your end of year tax return. All of our tax services include all of your income from all jobs. A logbook is not needed for bicycles, you just need to estimate your business use percentage. – Jess

  33. Sravan April 17, 2018 at 6:05 am - Reply

    Hi jess,

    I am working in a warehouse on TFN and earns between 40-45k annually. I also started ubereats just a month back for extra income. I don’t have an ABN at present but I already started doing trips for ubereats. By reading the posts above I understood that we can backdate the earnings in ABN. My question is Is it compulsory to have an ABN for uber eats and should I declare that income at the time of tax.
    Thankyou

    • Jess April 17, 2018 at 2:10 pm - Reply

      Hi Sravan, Yes if you earn any money at all from UberEats you must have an ABN, and you must declare that income to the ATO on your end of year tax return. Head to our ABN Registration form anytime to get your ABN for free. – Jess

  34. Sravan April 17, 2018 at 10:22 pm - Reply

    Thanks jess for the information. I already submitted the form. How many days will it take to get just ABN number not GST registration

    • Jess April 18, 2018 at 3:59 pm - Reply

      Hi Sravan, our processing time us usually two business days. I think your order has already been processed and sent to you! – Jess

  35. Sumanth April 18, 2018 at 5:55 am - Reply

    Hi jess,

    I already have ABN but not GST registered. I am driving for UberX ridesharing. How to register for GST. Can you please advise me how to do it.

    Thank you
    Sumanth

  36. Tony April 20, 2018 at 11:23 am - Reply

    Hi Jess,

    So last February I purchased a bike solely for ubereats (99% business purpose) delivery. Now, I realised that riding motorcycle for ubereats is better. With tihs, if I am going to buy a new motorcycle, will i be able to get the whole cost of my bicycle as tax deduction and how much can I get as tax deduction for the new motorcycle?

    Regards,
    Tony

    • Jess April 20, 2018 at 1:53 pm - Reply

      Hi Tony, it is still fine to claim the tax deduction for your bicycle as well as the motorcycle. For the motorcycle, a formal logbook is not required, technically you may keep any kind of diary or records to show the percentage of business/private use. However we still recommend that a logbook is the best option. The cost of both the bicycle and motorcycle can be claimed up front if they are under $20,000, but you must apply the business/private use percentage to your claim. – Jess

  37. Tony April 21, 2018 at 4:33 am - Reply

    Thanks Jess,

    So the full cost of buying the motorcycle and bike will be reimbursed to me? What about the fuel and other accessories?

    Thank you!

    -Tony

    • Jess April 23, 2018 at 11:42 am - Reply

      Hi Tony, no, a tax deduction does not mean you get all the money back, it only reduces your taxable income. Your tax saving is equal to the amount of the tax deduction (the cost of the bike and motorcycle) multiplied by your marginal tax rate. So if your marginal tax rate is 19% you will get 19% of the cost back. The same is true for fuel and other costs. And of course all deductions are subject to your business use percentage. Check out our blog post on Tax Deductions for Uber Drivers for more information. – Jess

  38. Jaydeep May 14, 2018 at 12:57 pm - Reply

    Hi Jess
    With ubereats I understand we have to keep a record of uber statement and I can see there are various statements available and I am confused which one is to keep.
    Thanks in advance

    • Jess May 14, 2018 at 5:53 pm - Reply

      Hi Jaydeep, the report we need is the monthly summary. Previously Uber had these in the Tax Summaries section of your Uber account, but this may have changed. You don’t need to keep them as you go, Uber will retain them in your account for you to access anytime. – Jess

  39. Abdul May 24, 2018 at 3:08 pm - Reply

    Hi jess
    I have a small question, i am a uber eats bicycle rider, i have to pay tax? Or any ABN ?

    • Jess May 24, 2018 at 4:24 pm - Reply

      Hi Abdul, yes, everyone who earns even just $1 from delivering must have an ABN and declare the income in their tax return. It doesn’t matter if you are bicycle, motorcycle or car. All of the information is in the article above. – Jess

  40. Khadija May 30, 2018 at 7:50 am - Reply

    Hi i been doing uber eats using both my motorbike and car. Can i claim for purchasing helmet, bike jacket and other related items that i needed when using my bike for deliveries?

    • Jess May 30, 2018 at 3:08 pm - Reply

      Hi Khadija, great question. You can only claim for items that protect your safety, but I think your bike jacket would qualify, and definitely your helmet of course. You can’t claim for normal denim jeans or any other ‘normal clothing’, only protective gear. Note that if you also use your motorbike for private use then you can only claim a percentage of the protective gear too. So if your bike is 30% Uber then you can also only claim 30% of any protective gear you buy. – Jess

  41. Amar July 10, 2018 at 3:42 am - Reply

    Hi Jess, I work for my employer and I need to drive to visit clients frequently therefore, I want to claim 5000km cent per km method as a work-related car expenses. At the same time I drove UberEATS and earned just under $400 in 2018 f.y. Should I have to split up the claim from 5000km between work-related car expenses and business schedule. Or Can I also claim car expenses like fuel and running costs in the business schedule for UberEATS.

    • Jess July 19, 2018 at 2:46 pm - Reply

      Hi Amar, you must use either the logbook method (i.e. claiming fuel and running costs) or the cents per km method for your whole tax return, you can’t use one for employment expenses and the other for the business schedule. If you choose the cpkm method you can only claim 5,000km per car for your whole tax return. It’s up to you whether you want to allocate some of the kms to your business schedule or just claim them all as employment deductions. – Jess

  42. putu July 18, 2018 at 5:55 pm - Reply

    hai jess today i did a tax for my ubereat in the tax agent, but he told me to register the GST, and he did for me, then i see here i dont have to register for GST, so what sould i do to cancel the GST ? is that ok to camcel it ? tanks

    • Jess July 19, 2018 at 2:49 pm - Reply

      Hi Putu, yes, if you only did food delivery and not rideshare driving then the tax agent was incorrect. I would suggest going back to them and asking them to cancel the registration for you, or you can just call the ATO to do this yourself. – Jess

  43. Tony July 23, 2018 at 3:47 am - Reply

    Hi Jess,

    I am registered for both Uber and Ubereats, however I did not do any rideshare services in the last quarter but only made about 6 deliveries, am I still required to lodge a BAS? Can I call the ATO to report Nil earnings.

    Kind regards

    Tony

    • Jess July 23, 2018 at 1:10 pm - Reply

      Hi Tony, once you are registered for GST you must pay GST on ALL of your income, including UberEats. So you must still lodge a BAS and declare that UberEats income. – Jess

  44. Uzair July 24, 2018 at 2:13 pm - Reply

    Hi,

    I’m lodging my tax returns for the year and need Uber Eats’ ABN to do it. Its not mentioned on the weekly, monthly or yearly payment summaries. How can i get Uber’s ABN?

    • Jess July 24, 2018 at 7:11 pm - Reply

      Hi Uzair, Uber’s ABN isn’t required for the tax return, so I don’t know it. I think you might be entering your income in the wrong section of the tax return, because it doesn’t ask for that information. You should be using the business schedule, all the item numbers begin with P. You will only need your ABN, not Ubers. – Jess

  45. Talha August 15, 2018 at 7:24 am - Reply

    Hi. Thank you for sharing some really invaluable information here. I have a full time job paying a taxable salary of $45,662. I have just started doing UberEats and I am roughly earning around $600/month (excluding fuel and car related expenses). Do I need to file a separate return for my ubereats income or one return including income from both the jobs? Also, how much tax would I end up paying after filing the return or would I not pay anything at all keeping in mind the tax deductions for fuel, insurance, rego etc? Your advice will be greatly appreciated. Thank you.

    • Jess August 15, 2018 at 4:57 pm - Reply

      Hi Talha, all of your taxable income is declared in one tax return. You will enter your employee income as normal, and then fill in the Business Schedule to declare your UberEats income. For more information on how much tax you’ll pay check out or blog post on How Much You’ll Actually Make Driving For Uber. – Jess

  46. Ross August 17, 2018 at 12:44 am - Reply

    Hi Jess,

    Great job. I’ve just found your site and really enjoyed reading through the comments. Thank you very much for the service.

    I just read that ATO doesn’t care whether you paying private or business insurance, but you still can claim for it.

    I’m an Ubereats driver and I had an accident last month going to work. I have an ABN by the way and I had to pay $2,000.00 for access.

    Can I claim it on tax?

    Also, with the GPS can I claim on my monthly recharge?

    • Jess August 17, 2018 at 3:05 am - Reply

      HI Ross, thanks very much! Yes you can claim a tax deduction for the insurance excess, however if the car is written off and you receive a payout you will be required to pay income tax on that amount. Yes if you have costs for a GPS you can claim a deduction. – Jess

  47. Sinu August 24, 2018 at 7:04 am - Reply

    Hi Jess,

    Thank you so much for the article. I am an Ubereats driver and need to file my tax for the 2017-18 Financial Year. Can I avail your services?

    Thanks

    • Jess August 24, 2018 at 5:20 pm - Reply

      Hi Sinu. Absolutely, you can find all the information about having your tax return lodged on our Tax Services page. – Jess

  48. San September 11, 2018 at 9:18 pm - Reply

    Hi Jess,

    1. I bought a new car for $50000 and I am using it for Uber eats most of the time (70% when calculated with logbook). How much depreciation expense could I claim at the end of the financial year for one full year??
    2. I bought the car on a loan. Am I able to claim any expense from the EMI’s I am paying such as interest??
    3. Can I claim the Car wash expense?? I spend around $10 every week on it and I won’t be having any invoice. If so, how do I note it down??
    4. Can I show Car insurance($180/month) as an expense??

    Thank you

    • Jess September 12, 2018 at 12:35 am - Reply

      Hi San. 1) I cannot provide tax calculations here. You can find depreciation rules on the ATO website here, and of course we will do this calculation for you as part of doing your tax return. 2) You cannot claim the principal of the repayments, because that’s the cost of the car which we claim as depreciation, but you can claim the interest. Note there is no GST, so rideshare drivers cannot claim interest on their BAS, only their end of year tax return. 3) and 4) You can find the answers to these in our blog post on Tax Deductions for Uber Drivers. Although it’s written more for rideshare drivers almost all of it applies to food delivery drivers too. – Jess

  49. Gems September 19, 2018 at 6:53 am - Reply

    Hi…I got lots of information from your articles. Thank you. I got one question on taxable income. The payment summary from ubereats got three section.
    1. Gross uber trips fares
    2. Referral/ incentives
    3. Uber trips services fees.
    Is referral/ incentives taxable or only gross uber trips fares.

    • Jess September 20, 2018 at 3:24 am - Reply

      Hi Gems, the gross uber fares and referrals/incentives are both taxable income, and the the Uber service fees are a tax deductions. – Jess

  50. N. Mann October 7, 2018 at 6:03 am - Reply

    Hi All,

    I have recently started UberEats delivery . I have registered myself for ABN under uber as well. It is already clear from the above comments that i dont have to pay GST unless my income is $75000 per annum. I am not working on any other TFN job.
    So am I preparing BAS statements quarterly???
    Or just pay my ABN tax on gross income i earned in a year from uber eats during financial year period at once only.
    Or pay ABN tax every 3 months or what ..???

    • Jess October 7, 2018 at 5:49 pm - Reply

      Hi, If you are not registered for GST then you do not have to lodge BAS’s. You only have to pay income tax on your end of year tax return. BAS’s are only for people who are registered for GST. I recommend checking out our post on the Seven Steps to Sorting your Uber Tax Obligations. The GST section will not apply to you but it will explain the difference of lodging the two different types of tax and how they are lodged. – Jess

  51. Nathan October 14, 2018 at 2:19 pm - Reply

    I want to start uber eats delivery driving. I was thinking of buying a seperate small cheap car to do the deliveries in and to reduce fuel costs and to make it easier to claim for tax. I was wondering if 100% of expenses related to the car were reimbursed at tax time and also what if my earnings were just $2000 for uber eats but car running costs such as rego servicing etc exceeded $2000 lets just say it was $3000 will the ATO reimburse money higher than what was earnt?

    • Jess October 15, 2018 at 9:01 am - Reply

      Hi Nathan, it’s important to note that a tax deduction is not like a reimbursement, you don’t get all the money back. For example, if your income was $1,000 you would have to pay tax on that at your marginal tax rate, lets say 34.5%. If you have a tax deduction of $300, now you only have to pay tax on $700 at 34.5%. This means you have saved yourself $300 x 34.5% = $103. So in other words, for your $300 expense you get back $103 from the ATO.
      If you make a loss (i.e. expenses are more than income) on your UberEats you cannot claim that loss (and assuming your gross income is under $20,000, there are different rules if you earn more than this), instead the loss is carried forward and you can use it to cancel out taxable profits on your UberEats income in future years. – Jess

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