Australian Rideshare Drivers: GST Registration Required
Australia is unique in requiring rideshare drivers to register for Goods and Services Tax regardless of how much they earn. Other gig workers in Australia have a $75,000 income threshold; rideshare drivers do not. This affects how Uber, Ola, and DiDi drivers price their work and claim deductions.
Why rideshare is treated differently
Standard ATO rules require GST registration only when annual turnover exceeds $75,000. Rideshare drivers are explicitly carved out: any rideshare earning is GST-relevant from the first dollar. The carve-out is in section 144-5 of the GST Act and is a deliberate policy choice tied to taxi-equivalence treatment.
Whether the policy is good or fair is debated. The fact is binary: if you drive rideshare in Australia, you must register for GST.
How to register
Apply via the ATO Business Portal or through your tax agent. You will receive an Australian Business Number (ABN) and be enrolled in GST. The process is online and typically takes a few business days.
Once registered, you charge GST on your fares (which Uber/Ola/DiDi handles through the platform), file Business Activity Statements (BAS) quarterly or annually, and remit the GST to the ATO.
How GST registration helps your car-expense claim
Registered drivers can claim GST credits on the GST included in their car-related expenses: fuel, insurance, registration, maintenance, even the GST on the car purchase price if the vehicle is used for rideshare. This GST credit is separate from and in addition to the income-tax deduction for the same expenses.
For high-mileage drivers, the GST credits over a year typically more than offset the GST collected on fares. The registration is a net win on the cost side, even if it adds BAS administrative work.
How the cents-per-km and logbook methods interact with GST
Cents-per-km: the 88-cent rate is GST-inclusive at the income-tax-deduction level. To claim GST credits on car expenses, you typically need actual receipts, which means the logbook method is more useful for GST credit purposes.
Logbook: actual expense receipts let you claim 1/11th of the GST-inclusive cost as a GST credit (for standard-rated supplies) and the remaining 10/11ths as part of your business-use percentage deduction.
FAQ
What if I only drive rideshare a few hours a week?
Frequency does not change the rule. The first dollar of rideshare income triggers GST registration. A driver who earns $200 a year from rideshare is still required to register.
Do food-delivery drivers also need to register?
No. Food delivery (DoorDash, Menulog, Deliveroo, Uber Eats) is treated under standard GST rules with the $75,000 turnover threshold. Only rideshare (passenger-carrying) is the carve-out.
Can I deregister if I stop driving?
Yes. Once you stop rideshare and your turnover is below the $75,000 threshold for any other business activity, you can apply to deregister via the ATO portal. The deregistration is straightforward but should not happen mid-financial-year if you might return to rideshare.
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