If you are a driver for a ride sharing service, you need to treat it like any other business. 

What do I need to do?

Income tax

GST – if you have a ride-sourcing enterprise

  • Include the income you earn in your tax return.
  • Only claim deductions related to transporting passengers for a fare.

 

  • Get an Australian business number.
  • Register for GST regardless of how much you earn (ride-sourcing is taxi travel for GST purposes).
  • Pay GST on the full fare.
  • Only claim GST credits related to transporting passengers for a fare.
  • Lodge business activity statements monthly or quarterly (you can't choose to lodge annually).
  • Know how to issue a tax invoice (you need to provide one for fares over $82.50 if asked).

 

What type of tax deductions can I claim?

Car related expenses you could claim

 

  • Fuel
  • Registration and insurance
  • Repairs and servicing
  • Car cleaning
  • Depreciation
  • Interest (on car loan)

Please note: To claim the above running costs you will need to keep a logbook.  You can claim only the ride sharing business percentage of the expenses. 

 

If you choose to use cents per kilometre method you are limited to 66 cents per kilometre to a maximum of 5,000km per year.

 

Other work related costs you may be able claim

 

 

  • Registration costs for the ride sharing driver (application fees, medical and police checks etc.)
  • Work-related parking expenses
  • Mobile phone costs
  • Refreshments for passengers
  • Sunglasses (if you drive through the day)
  • Uniforms and laundry (if mandatory and with logo) 
  • Stationery