Tax Deductions for Uber Drivers in Australia (2026 Guide)

Who this guide is for: Uber drivers and other ride-sourcing drivers operating in Australia.

Scope note: Ride-sourcing has extra tax rules. Drivers generally need an ABN and GST registration from the first trip, regardless of turnover.

Last reviewed: 22 March 2026

Quick answer

Uber and other ride-sourcing drivers generally treat the activity as business income and may be able to claim the ride-sourcing share of car running costs, platform commissions, tolls, phone use and other costs directly tied to the driving activity. Private vehicle use and non-business costs still need to be excluded.

You usually need to have paid the cost yourself.
The expense should directly relate to earning income or running the business.
Only the work-related or business-use share is usually claimable for mixed-use items.
Records matter just as much as the expense itself.

Intro: who this guide is for

Uber drivers are not just dealing with income tax. In Australia, ride-sourcing has special GST rules, so your Phase 1 content needs to mention both deductions and compliance basics.

The ATO also expects you to apportion expenses properly. If a car or phone is partly private and partly for ride-sourcing, only the ride-sourcing portion is claimable.

Common deductions this occupation may be able to claim

Common expenses to review

Ride-sourcing platform commissions and service fees.
Fuel, servicing, cleaning, registration, insurance and other vehicle running costs to the deductible business-use extent.
Tolls, parking and airport fees connected to ride-sourcing trips.
Phone costs used for the app, navigation, passenger contact and trip management.
Accessories used for the business such as phone mounts, charging cables and seat covers if they are genuinely for the ride-sourcing activity.

Occupation-specific expenses to review

GST credits on eligible business purchases if you are properly registered and hold the right tax invoices.
Vehicle depreciation or other car deduction methods depending on your setup and records.
Water, mints or low-cost passenger amenities where they are part of the service rather than personal consumption.
Accounting or BAS preparation fees linked to managing GST and business reporting.

Other costs that may still matter

A share of data plans and internet costs used to run the driver app and business communication.
Bank fees attached to the business account used for ride-sourcing income.
Bookkeeping apps and mileage or logbook tools.
Home admin costs for BAS work, invoicing or business records where the rules allow it.

Expenses commonly not deductible

Private trips or the private-use portion of your vehicle.
Fuel tax credits for fuels used in light vehicles travelling on public roads.
Private meals while waiting for jobs.
Expenses without records, especially where a tax invoice is required for GST credits.
Fines, speeding penalties or parking infringements.

Employee vs sole trader or contractor differences

Most ride-sourcing drivers operate as sole traders rather than employees, which means business records, ABN and GST obligations can matter from the start.
If you drive under a different arrangement where you are actually an employee, the claim rules can look different and reimbursements become important.
Because the activity is usually business-like, it is especially important to separate ride-sourcing income and expenses from private car use.

Record-keeping requirements

Keep platform statements, trip summaries, toll records, phone records and any invoices for car-related expenses.
Track how you worked out the ride-sourcing share of vehicle costs and private use, especially if the same car is used personally.
Retain GST, BAS and bookkeeping records if those obligations apply to your setup.
Store the records in a way that makes it easy to tie expenses back to actual ride-sourcing activity.

Common mistakes

Claiming all car expenses for the year instead of only the ride-sourcing portion.
Ignoring GST, ABN or record-keeping obligations because the driving started as a side hustle.
Mixing private tolls, fuel or repairs into business claims without support.
Treating ride-sourcing as employee income when it is actually business activity.

Frequently asked questions

Do Uber drivers need to register for GST in Australia?

Generally yes. Ride-sourcing drivers need an ABN and GST registration before they start or within the required timeframe, even if turnover is below the usual threshold.

Can Uber drivers claim fuel and servicing?

Yes, to the deductible business-use extent. Private travel must be excluded.

Can I claim fuel tax credits for Uber driving?

No, the ATO says fuels used in light vehicles travelling on public roads, including for ride-sourcing, are not eligible for fuel tax credits.

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Reviewed and sourced

Reviewed by: Australia Tax Deductions editorial team

Review date: 22 March 2026

How this guide is framed: This page is written as plain-English educational information and checked against official ATO guidance. It is not personal tax advice.

Primary references

General educational information only. Tax outcomes depend on your circumstances, records, business structure and the current ATO rules. Check the latest official guidance or speak with a registered tax professional before acting on any deduction claim.