Ride-sourcing

Understand your tax obligations as a ride-sourcing driver.

Last updated 19 December 2024

Watch:

Media: There's more to ride-sourcing than having a car
https://tv.ato.gov.au/ato-tv/media?v=bd1bdiub7isr97Opens in a new window (Duration: 00:49)

What is ride-sourcing

Ride-sourcing, sometimes referred to as ride-sharing, is an ongoing arrangement where:

you (a driver) are using a car to transport passengers for a fare
a passenger uses a third-party digital platform, such as a website or an app, to request a ride. For example, Uber, Shebah, or GoCatch.

Your ride-sourcing income is subject to GST and income tax.

You must be registered for an Australian business number (ABN) and GST from the day you start providing ride sourcing services, regardless of how much you earn. The only exception is if you're an employee.

Penalties and interest may apply if you don't register for GST.

When you’ve registered for GST, you need to:

report and pay GST collected on sales from your ride-sourcing activities
lodge your business activity statement (BAS) monthly or quarterly
claim GST credits for purchases relating to your ride-sourcing and other business activities, remember you can't claim GST credits for purchases for your personal use
issue a tax invoice for fares over $82.50 if a passenger asks you.

You also need to report all your income from your rides in your tax return.

You need to:

include the income you earn in your tax return
only claim deductions related to transporting passengers for a fare
remember to apportion expenses to the time you are providing a ride-sourcing service
keep records of all your expenses and income – you may use the free myDeductions tool in the ATO app.