Uber has revolutionized the taxi business, transforming both the riders and customer experiences in more ways than one. With that in mind, it’s not a surprise to see an opportunity to earn a living as an Uber driver in Australia. 

Uber profits from the commission it takes from the fares you earn. Uber takes an average commission of 25-30 per cent from what you earn, depending on the city you are working in. Uber pays for rider promotions and referral bonuses that have nothing to do with your work.

Uber takes out fees for itself and also for the driver’s taxes for each ride you give. Uber takes out 2.5 per cent as a tax on gross fee from each ride, and you have to pay taxes on that as well. So your commission might not be as high as you thought.

But the question here is, how much do Uber drivers earn in Australia?

Factors that Impact Uber Drivers’ Salary

Uber drivers’ salaries in Australia depends on many factors. Here are a few things that affect your earning capacity as an Uber driver:

Your Location – The area where you want to drive your car and the number of passengers that you want to pick up is the first factor that decides your earning potential. Generally, for a given area, the more number of passengers you pick up and the longer the average trip that you make, the more you will earn. 

So, if you’re a driver, you will have to choose the area where you want to drive to and also pick up the maximum number of passengers in that area because this will directly affect your earning potential.

Your Uber Shifts – Uber drivers are paid based on the number of “shifts” they complete. A shift can be a single trip, or it can be the length of time you spend logged in to the app. So, the more number of shifts you log, the more you can earn from the rides.

What are the Average Hourly Earnings for Uber Drivers After Tax?

Well, the answer to this question is that it depends. It depends on the number of shifts you log, the number of trips you give, the time of the day when you drive and where you drive to. It also depends on the number of drivers you are competing within a given area, but generally, you can apply the following calculations: 

  • If you’re below the tax-free threshold, then you can calculate your take-home pay per hour by multiplying your gross fares per hour by 26 per cent; 
  • If you fall under the 21 per cent tax bracket, then you can calculate your take-home pay per hour by multiplying your gross fares per hour by 19 per cent;
  • If you fall under the 34.5 per cent tax bracket, then you can calculate your take-home pay per hour by multiplying your gross fares per hour by 15 per cent;

The Bottom Line: What to Know Before Driving Behind the Wheels as an Uber Professional

Undoubtedly, if you want to make a decent amount of money through Uber, you need to be active and diligent in driving. As an independent driver, it is you who has to decide where and when to drive, so it’s important for you to do your research first before heading for the road. 

How Does Rideshare Tax Help You?

Rideshare Tax is an Uber accountant app that assists you in your tax and BAS accounting. It’s a free app designed for rideshare drivers that offer ABN and GST registration and allows you to manage your BAS on the go.

We offer a FREE app for rideshare drivers so you can easily manage your BAS and tax wherever the journey takes you. You only need to link your account and reap the benefits of its features—from recording your expenses for future tax claims, lodging your BAS, knowing your live GST position, capturing receipts, and simplifying your digital logbook all in a few clicks!