Gig Economy Tax Guide: Uber, Deliveroo, Airtasker and More
How one rideshare driver turned a $3,200 tax bill into a $1,800 refund
Marcus started driving for Uber during his final year of university. It seemed like easy money: flexible hours, decent earnings, and he got to know Melbourne's streets like the back of his hand. By the end of the financial year, his Uber earnings totalled $42,000.
Then came tax time, and Marcus panicked.
"I had no idea what I was doing," Marcus recalls. "I just saw this big income number and assumed I owed thousands. I had not kept any receipts, had no idea about GST, and thought I was in serious trouble."
His initial rough calculation suggested a tax bill of around $3,200. But after working through his situation properly, Marcus not only eliminated that bill, he received a $1,800 refund. The difference? Understanding the deductions available to gig economy workers.
The Problem: Gig Workers Are Missing Thousands in Deductions
Over 250,000 Australians now work in the gig economy, driving for Uber, delivering for Deliveroo and DoorDash, completing tasks on Airtasker, or freelancing through various platforms. Most are treated as independent contractors, which means running their own business whether they realise it or not.
The ATO has identified gig economy workers as a compliance focus area. They receive data directly from platforms about every dollar you earn. Yet many gig workers:
- Fail to register for GST when required (mandatory at $75,000 turnover for rideshare from dollar one)
- Miss legitimate deductions worth thousands of dollars
- Do not understand the difference between being an employee and a contractor
- Keep inadequate records, risking audits and penalties
For Marcus, the lightbulb moment came when he realised that as a rideshare driver, he was running a business. That meant his car was a business asset, his phone was a business tool, and dozens of expenses he had ignored were actually deductible.
Key Insight: Rideshare and Delivery Driver Deductions
Marcus's transformation from owing $3,200 to receiving $1,800 came from properly claiming these deductions:
Vehicle Expenses: The Big One
For rideshare and delivery drivers, vehicle costs are typically the largest deduction. Marcus had two options:
Logbook Method: Track your business kilometres for a 12-week period, then claim that percentage of all running costs: fuel, registration, insurance, servicing, tyres, and depreciation. Marcus's business use was 68 percent.
Cents Per Kilometre: Claim 85 cents per kilometre for up to 5,000 business kilometres. Simpler, but often less valuable for high-kilometre drivers.
Marcus drove 32,000 kilometres for Uber. Using the logbook method with 68 percent business use:
- Fuel: $4,800 x 68 percent = $3,264
- Registration: $850 x 68 percent = $578
- Insurance: $1,400 x 68 percent = $952
- Servicing and repairs: $1,200 x 68 percent = $816
- Depreciation on car: $4,500 x 68 percent = $3,060
- Total vehicle deductions: $8,670
Phone and Data
Marcus used his phone exclusively for rideshare while working. He claimed 80 percent of his $100 per month plan: $960 for the year.
Uber and Platform Fees
The service fees charged by Uber and other platforms are tax deductible. Marcus paid $7,350 in Uber service fees, fully deductible.
Other Deductions
- Phone mount and car charger: $85
- Cleaning supplies for the car: $120
- Water bottles and mints for passengers: $180
- Portion of home internet for checking earnings: $240
Marcus's Final Tax Position
Here is how Marcus went from a $3,200 estimated tax bill to a $1,800 refund:
- Gross Uber income: $42,000
- Less: Uber service fees: $7,350
- Less: Vehicle expenses: $8,670
- Less: Phone and data: $960
- Less: Other deductions: $625
- Taxable income from Uber: $24,395
Combined with the tax-free threshold and his low other income (part-time casual work of $8,000), Marcus's total taxable income was well under $45,000. After accounting for PAYG withholding from his casual job, he was owed a refund of $1,800.
"I went from dreading tax time to actually looking forward to it," Marcus says. "That refund paid for my textbooks and then some."
How TaxBot Helps Gig Workers
TaxBot was built with gig economy workers in mind:
- Platform integration: Connect Uber, Deliveroo, DoorDash, and other platforms to automatically import your earnings and fees
- Kilometre tracking: Use GPS tracking to log every business trip automatically
- Logbook assistant: Generate a compliant 12-week logbook to establish your business use percentage
- Receipt capture: Snap photos of fuel receipts, servicing invoices, and other expenses
- GST monitoring: Get alerts as you approach the $75,000 GST registration threshold (or understand the special rideshare rules)
- Quarterly BAS preparation: If registered for GST, TaxBot prepares your BAS based on your tracked income and expenses
TaxBot users in the gig economy claim an average of $4,200 more in deductions than those who file without tracking tools.
Action Steps for Gig Workers
- Register for an ABN: You need this to work as a contractor. It is free at abr.gov.au
- Understand GST requirements: Rideshare drivers must register for GST from dollar one. Other gig workers register at $75,000 turnover
- Start a logbook: Track your business kilometres for 12 weeks to establish your vehicle business use percentage
- Keep every receipt: Fuel, servicing, phone bills, any expense related to your gig work
- Set aside tax: Put 25 to 30 percent of your earnings aside for tax. The ATO offers Pay As You Go instalments to spread payments quarterly
- Download TaxBot: Start tracking automatically and see your deductions add up in real time
Your Gig Income Deserves Smart Tax Management
Like Marcus discovered, the difference between owing money and receiving a refund often comes down to knowing what you can claim. The gig economy offers flexibility and freedom, but it also means taking responsibility for your tax affairs.
Download TaxBot today and join thousands of Australian gig workers who are keeping more of what they earn.