The biggest questions among UberEats and Food Delivery Drivers are: Do I need an ABN? Do I need to be registered for GST?
Rideshare Tax can answer these for you.
It depends on what you do. To make it simple for you, we’ve set up two categories. All you do is pick your category – A or B – then look up the information in your category.
Category A – You ONLY deliver for UberEats or other food delivery company.
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- You need an ABN.
- You do not need to register for GST if your total income is under $75,000. (Total income includes any other income you’ve earned from other small businesses on your ABN).
Category B – You deliver food AND drive passengers for UberX (rideshare).
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- You need an ABN.
- You need to register for GST.
The ATO requires you to have an ABN and to be registered for GST from the very first dollar you earn. This applies even if you only drive occasionally.
The $75,000 GST threshold does not apply to you. Doesn’t seem fair, does it? This is because the ATO has special rules for taxi and rideshare drivers – and one of them is that you must be registered for GST.
So you have to pay GST on all of your income – including UberEats, UberX and any other income you earn on your ABN.
Time to talk about your tax obligations.
Category A – Tax obligations.
Step 1. Get an ABN. You can apply for an ABN free of charge in the Rideshare Tax app.
Step 2. Keep track of all your income and expenses. Sounds complicated, but not when you use the free Rideshare Tax app to do this.
Step 3. Keep a car logbook. Refer to our blog on Keeping a vehicle logbook for your ridesharing business for details. You will need this for Step 4.
Step 4. Lodge your income tax return. If you followed Step 2, then you can retrieve all your income and expenses through the app. This information can then be used in your end of year tax return.
Note: We can lodge your tax return for you. Find out how affordable and easy this service is for you.
Category B – Tax obligations.
Step 1. Get an ABN and register for GST. You can apply for an ABN and register for GST free of charge in the Rideshare Tax app.
Step 2. Keep track of all your income and expenses. But don’t stress. This is a cinch when you use the free Rideshare Tax app.
Step 3. Keep a car logbook. Refer to our blog on Keeping a vehicle logbook for your ridesharing business for details on this. You will need this for Step 4 and 5.
Step 4. Lodge your quarterly Business Activity Statement (BAS) with the ATO. This is simple if you followed Step 2 and kept track of all your income and expenses.
Note: We can lodge your quarterly BAS for a minimal fee. Discover how easy we make it for you.
Step 5. Lodge your income tax return. If you followed Step 2, then all your income and expenses can be retrieved through the app. This information can then be used in your end of year tax return.
Note: We can lodge your tax return for you. Find out how affordable and easy this service is for you.
And that’s it. Once you know your category, the rest is easy. Just follow the steps and use the tools we have ready to go for you.
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Hi Thaws, thank you for your positive comment and we’re glad we could assist.
I deliver food for Ubereats and Menulog and driver for Uber, DiDi, Ola and private job and also courier. Do I pay GST on the courier income as well?
Hi Vinne, yes when you’re registered for GST, all income you earn on your ABN attracts GST including your courier income.
Hi i do uber and menulog do i need to pay tax ?? If i have to pay tax so how much??
Hi Michael,
Can I have separate ABN for courier (delivery) activities so that GST doesn’t apply to that?
TIA.
Hi Manpreet, yes you will need to pay tax. I can’t answer how much tax without knowing your financial situation. What I suggest is, you start the process by clicking on the link below and a CPA Accountant will review and lodge your tax return for you.
https://ridesharetax.com.au/services/lodge-income-tax/
Hi Shin, as a sole trader, the ATO will only allow for one ABN. This means all the income you earn on your will attract GST. I hope this helps. Please reach out if you have any further questions.
Hi Michael, I have an ABN but have not registered for GST. I wanna start doing UberEats and I am sure that my turnover will be less than 75K. Should I register for GST or I can do UberEats without it?
Thank you so much
Hi, I worked as ubereats rider with total income below $17k a year, do I have to apply for ABN ?
Hi Noah, yes you still have to apply for an ABN number. All sole traders or contractors require an ABN. Michael CPA accountant at Rideshare Tax
Hi Pedro, if your only planning on doing UberEats there is no need to apply for GST registration. If you start getting closer to $75K turnover then you can apply. Just review your income on monthly basis, you will have a know if you are getting close to the $75h threshold. Then you can register for GST. Michael CPA accoutant at Rideshare Tax.
Hi Michael,
Hope you doing well.
I have a small doubt on my ABN income.
I have worked on deliveroo and I earned around $630 in 2019-20 financial year but I forgot to show in my 2019-20 tax returns, does this effect me in any way and upon friend’s suggestion I have registered for GST to show this income that I worked on ABN(Deliveroo), later I found out that I don’t have to register for GST for this source of income, so what are the the options do I have to nullify the negative outcome if any.
Thanks in advance.
Hi Adi, Although it’s not a significant amount of income, all income must be reported to the ATO. You have the option of getting in touch with the ATO and amending your tax return to include the Deliveroo income. Yes, if you only do delivery services you are not required to register for GST. You could also get in touch with the ATO and see what your options are, to perhaps unregister your ABN for GST. Hope that helps. Michael CPA accountant at Rideshare Tax