Rideshare & Taxi Driver Tax Guide

The one big difference: GST from your first dollar

Unlike most sole traders, rideshare and taxi drivers must register for GST regardless of income — there's no $75,000 threshold. If you drive for Uber, Ola, Didi, or a taxi service, you need to register for GST from the very first fare.

Estimate your GST and income tax together Use the Rideshare Calculator →

Vehicle expenses: two methods, one clear winner for most drivers

Cents per kilometre method

For 2026-27, the rate is 91 cents per kilometre (88 cents for 2024-25 and 2025-26), but it's capped at 5,000 business kilometres per car per year — a maximum claim of around $4,550. Most rideshare and taxi drivers drive far more than 5,000km for work, since driving is the job, so this cap makes the method impractical for most full-time and even many part-time drivers.

Logbook method

This lets you claim the business-use percentage of your actual running costs — fuel, servicing, insurance, registration, and depreciation — with no kilometre cap. You keep a logbook for a continuous 12-week period to establish your business-use percentage, then apply that percentage to your actual costs for the full year.

For most rideshare and taxi drivers, where the vehicle is used overwhelmingly for work, the logbook method produces a significantly larger deduction than the cents-per-km cap allows.

Vehicle deduction method comparison
Cents per km (2026-27)	91c/km, capped at 5,000km (~$4,550 max)
Cents per km (2024-25 & 2025-26)	88c/km, same 5,000km cap
Logbook method	No km cap — claims actual % of real running costs
Car depreciation limit (2026-27)	$69,883 — the maximum vehicle cost you can depreciate from

Other deductible expenses

Platform fees — the commission Uber, Ola, Didi, or a taxi network takes from your fares.
Tolls and parking — directly incurred while driving for fares.
Car cleaning — keeping your vehicle presentable for passengers.
Phone and data plan — the business-use portion, since you need it to run the app.
Comprehensive insurance — often required by rideshare platforms, and deductible.
Safety equipment — dash cams, first aid kits, and similar items required or used for the work.

BAS lodgment

Because you're GST-registered from day one, you'll generally need to lodge a Business Activity Statement (BAS) regularly — usually quarterly — not just an annual tax return. Your BAS reports the GST you've collected on fares and the GST credits you're claiming on expenses.

PAYG instalments

Once your driving income reaches a certain level, the ATO may also ask you to prepay income tax through PAYG instalments, in addition to your regular BAS.

Estimate a PAYG instalment Use the PAYG Calculator →

Common mistakes

Not registering for GST because "income is too low" — the $75k threshold doesn't apply to rideshare/taxi work.
Using the cents-per-km method and being capped at 5,000km, without realising the logbook method could claim significantly more.
Not keeping a valid 12-week logbook, which is required to substantiate a logbook-method claim.
Forgetting to separately keep receipts for platform fees, tolls, and parking.

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Related guides

General information only. Consult a tax professional for your specific situation.