What Can Uber Drivers Claim on Tax?

Tax time can feel overwhelming for rideshare drivers — especially if it’s your first year.

If you’re asking what can Uber drivers claim on tax, you’re not alone.

Many drivers either:

• Miss legitimate deductions
• Or accidentally overclaim and create problems

This Uber driver tax guide 2026 (Australia) explains:

• Common Uber driver tax deductions in Australia
• Fuel deduction rules
• Logbook vs cents per kilometre method
• Depreciation
• GST & BAS obligations
• Record-keeping requirements

Clear. Practical. No jargon.

---

First: Are Uber Drivers Considered a Business?

Yes.

In Australia, Uber drivers operate as sole traders. That means:

• You must declare income
• You can claim business expenses
• You may need to lodge BAS statements
• You pay income tax on net profit

You are not an employee. Uber does not withhold tax for you.

---

Fuel Deductions

Fuel is usually your largest expense — but how you claim it depends on your method.

There are two main ways to claim car expenses:

---

1. Logbook Method (Most Common for Uber)

This method allows you to claim the business-use percentage of:

• Fuel
• Insurance
• Servicing
• Registration
• Depreciation
• Interest on car loan

How It Works

1. Keep a 12-week logbook tracking business vs private kilometres.
2. Calculate business percentage.
3. Apply that percentage to total car costs.

Example:

• Total km in 12 weeks: 10,000
• Uber km: 8,000
• Business use: 80%

If total annual fuel = $12,000
You claim: 80% = $9,600

For most full-time drivers, the logbook method produces larger deductions.

---

2. Cents Per Kilometre Method

This method:

• Uses a fixed rate per km (set annually by the ATO)
• Maximum of 5,000 km claimable
• No need for detailed expense receipts

However:

• Most Uber drivers exceed 5,000 km quickly
• It usually results in a lower deduction

For rideshare drivers, logbook method is generally more beneficial.

---

Car Depreciation

Vehicles lose value — and that decline can be claimed.

Depreciation applies if:

• You own or finance the vehicle
• You use it for business purposes

Using the logbook method, you claim:

• Business percentage of annual depreciation

High-usage Uber vehicles depreciate faster than average private cars.

Depreciation often equals:

• $5,000–$10,000 per year depending on vehicle

It’s a significant deduction many new drivers underestimate.

---

Insurance (Including Rideshare-Specific)

You can claim the business-use percentage of:

• Comprehensive insurance
• Rideshare extension premiums
• CTP (business portion only)

If your business use is 80%, you claim 80% of the premium.

Important: Personal-only insurance without rideshare coverage may invalidate claims and tax deductions.

---

Registration & Servicing

You can claim the business-use percentage of:

• Registration
• Repairs
• Servicing
• Tyres
• Brake replacements

If you drive 1,000+ km per week, servicing costs add up quickly — and they’re deductible.

---

Phone & Internet Usage

Your phone is essential for:

• Uber app usage
• Navigation
• Communication

You can claim:

• Business portion of phone plan
• Data usage

If you estimate 70% business use, you can claim 70% of your monthly bill.

Keep usage notes to justify your percentage.

---

Tolls & Parking

These are fully deductible when:

• Incurred during business trips

Unlike general car expenses, tolls and parking can be claimed at 100% if directly related to Uber driving.

Keep digital receipts or statements.

---

Cleaning Costs

Yes — cleaning is deductible.

You can claim:

• Car washes
• Interior cleaning
• Detailing

These are considered business maintenance expenses.

---

Accountant Fees

Fees paid to:

• Tax agents
• BAS agents
• Bookkeepers

Are fully deductible.

If your accountant charges $450 for annual tax preparation — that’s claimable.

---

BAS & GST Obligations

All Uber drivers must register for GST.

This means:

• Charging GST on fares
• Lodging Business Activity Statements (BAS)
• Paying GST collected (1/11th of fares)

You can also claim GST credits on:

• Fuel
• Servicing
• Insurance
• Registration

Good record-keeping is critical for accurate BAS reporting.

---

Example Scenario

Example: Driver earning $1,800 per week with $600 expenses

Weekly:

• Gross income: $1,800
• Operating expenses: $600
• Net profit: $1,200

Annualised (approx):

• Gross: $93,600
• Expenses: $31,200
• Net taxable income: $62,400

Income tax is paid on $62,400 — not $93,600.

If the driver properly claims:

• Depreciation
• Fuel
• Insurance
• Phone
• Cleaning
• Accountant fees

Taxable income may reduce further.

This is why tracking expenses properly matters.

---

Want to see how tax impacts your real profit?

Use our free Uber Driver Earnings Calculator to estimate your weekly, monthly and yearly net income after expenses.

Understanding your net income helps you prepare for tax time with fewer surprises.

---

Records You Must Keep

The ATO expects:

• Logbook (if using logbook method)
• Fuel receipts
• Insurance invoices
• Registration receipts
• Servicing invoices
• Toll statements
• Phone bills
• BAS records
• Uber earnings summaries

Keep records for at least 5 years.

Digital storage is acceptable.

---

Common Mistakes Uber Drivers Make

• Not registering for GST
• Forgetting to set aside tax money
• Mixing personal and business expenses
• Not keeping receipts
• Overclaiming fuel without logbook evidence

Small record-keeping habits prevent large tax problems later.

---

Want to estimate your after-tax profit?

Use our free Uber Driver Earnings Calculator to see how expenses and tax affect your annual income.

Make informed decisions before tax time arrives.

---

FAQ

Do Uber drivers need to register for GST?

Yes.

All rideshare drivers in Australia must register for GST, regardless of income level.

---

Can Uber drivers claim 100% of fuel?

Only if the vehicle is used 100% for business.

Most drivers must claim fuel based on business-use percentage via logbook method.

---

Do Uber drivers pay income tax?

Yes.

Income tax is paid on net profit (gross income minus deductible expenses).

Uber does not withhold tax — drivers must manage this themselves.

---

What records should Uber drivers keep?

• Logbook
• Receipts
• Invoices
• BAS statements
• Uber earnings summaries

Accurate records protect you in case of audit.

---

Financial Disclaimer

This article provides general information only and does not constitute tax, financial or legal advice. Tax laws and ATO regulations may change and individual circumstances vary. Always consult a registered tax agent or qualified accountant regarding your specific situation before lodging tax returns or BAS statements.