Whether you’re between jobs or need to earn some extra cash in your spare time, working as a delivery partner for a food delivery service like UberEats, Deliveroo, DoorDash, or Menulog is a low-cost way to start earning money in your own business without needing to get an Australian Business Number (ABN). It’s flexible: you make the rules! However, there are some important things you need to set up and maintain in order to start working as a sole trader. In this guide, we’ll cover what you need to do to get started as well as what your tax reporting obligations are as a sole trader. We’ll also introduce you to some techniques that can help make tax time simple and stress-free.

A Tax Compliance Guide for Delivery Food Partners and Riders

1 – Do I need an ABN as a food delivery partner?

As a sole trader, you are not required to have an ABN if you are earning less than $75,000 per year. This means you can be a sole trader earning as much as $80,000 per year and not need an ABN. You might consider getting an ABN if you plan on earning more than $75,000 per year or if you are going to apply for an Australian Business Loan in the future.

2 – Do I need to register for GST?

If you are earning over $75,000 per year in gross income, then you must register for GST. You can start your GST registration using the ATO’s Business Portal, then follow up with a phone call to the ATO once you have registered.

3 – Are there any exceptions to the rule?

If you work as a sole trader, you are generally exempt from paying GST on anything you need to buy for your business. However, there is an exception to this rule. If you buy anything for more than $300, you will need to pay GST on the item. If you plan on using your own car for deliveries, this should not be an issue. You should be able to buy your car for less than $300 and not be charged GST on it. Make sure to check with your gear provider if you are going to buy equipment from them.

4 – What about my insurance?

You might be eligible for a few tax deductions for your insurance costs. If you plan on using your own car for deliveries, make sure you’ve got the proper commercial insurance. If you are riding a bicycle, you might want to consider Personal Accident Insurance to cover you in the event of an accident.

Conclusion

Keep in mind that this is just a basic tax guide for delivery riders. As such, it is not intended to be a comprehensive guide to tax but rather aims to provide a high-level overview of some topics that might be helpful to you as you start working for yourself. There are some topics, like childcare rebates, that are beyond the scope of this basic guide. Using a tax app will go a long way, especially if it is your first time filing your taxes as a delivery partner.

Drive more and worry less by downloading Rideshare Tax! This is a free app designed for rideshare accounting. Get free ABN and GST registration and manage your BAS on the go.