Receiving an ATO audit or review notice can be stressful, but it does not automatically mean the ATO believes you committed fraud. For Uber drivers, a review commonly focuses on whether all rideshare income was reported, GST was calculated correctly, GST credits were supported by tax invoices, and vehicle or other expenses were limited to the business-use portion. The best response is organized, factual and supported by records.
This guide explains what to do from the moment you receive an ATO contact through to the final outcome, including how to reconstruct records, respond to information requests, correct mistakes and challenge a decision when necessary.
Important Disclaimer
This guide provides general educational information and is not tax, accounting or legal advice. An ATO review or audit can have significant financial consequences. Consider obtaining advice from a registered tax agent, BAS agent or tax lawyer, particularly if the ATO alleges deliberate conduct, fraud, large GST shortfalls, false documents or repeated non-compliance.
Immediate Response Checklist
Confirm that the communication is genuine before sharing information or making a payment.
Write down the response deadline, the officer’s contact details and the periods under review.
Read the notice carefully and identify exactly which BAS labels, income years or deductions are being examined.
Download Uber tax summaries, weekly statements, trip records and fee statements for the relevant period.
Collect bank and card statements, receipts, invoices, logbooks, toll statements and vehicle records.
Reconcile the records to every BAS and income tax return affected by the review.
Engage a registered tax professional early if the amounts are material or your records are incomplete.
Respond by the deadline, or request a reasonable extension before the deadline expires.
Understand What the ATO is Reviewing
The terms “review”, “audit” and “verification check” are sometimes used loosely, but the scope matters. A focused verification may ask for a small number of documents supporting one BAS label. A broader audit can test several tax periods, compare your platform and bank data, and lead to amended assessments, penalties and interest.
Type of contact | Typical focus | What it means for you |
Information request | Specific invoices, statements, logbook evidence or a reconciliation | Answer the exact request and retain a complete copy of what you provide. |
BAS review | GST on fares, GST credits, business-use percentages and reporting periods | Reconcile each BAS label to source records and correct errors if found. |
Audit | Broader examination of income, expenses, GST, records and conduct | Professional representation is often worthwhile, especially where penalties may arise. |
Amended assessment or decision | The ATO has reached a position and adjusted your liability | Check the reasons, payment due date and objection rights immediately. |
Verify That the ATO Contact is Genuine
Scammers frequently impersonate the ATO. Do not rely solely on a phone number, email link or payment instruction contained in an unexpected message. Check the notice through your myGov account linked to the ATO, Online services for business, or by contacting the ATO through a number published on its official website.
Be cautious if the caller demands immediate payment by cryptocurrency, gift card or transfer to a personal account; threatens immediate arrest; asks for your myGov password; or refuses to let you verify the contact independently.
Identify the Deadline and Control Communications
Create a simple audit file containing the notice, all correspondence, a contact log and copies of every document supplied. Keep communications professional and concise. If you need more time, contact the case officer before the deadline and explain what records are outstanding, why they are needed and when you can provide them.
Record the date, time, officer’s name, phone number and summary of each call.
Confirm important verbal discussions by email or letter.
Do not guess. State when you need to check a figure or obtain a document.
Do not alter, backdate or recreate documents in a misleading way. Clearly label reconstructions and explain the source data used.
Build the Evidence File the ATO is Likely to Request
The strongest response connects each reported amount to reliable source evidence. For Uber drivers, assemble records in the categories below.
Uber and Platform Records
Annual Uber tax summary and monthly or weekly earnings statements
Trip and payout history
Service fee, booking fee and commission information
Adjustments, incentives, bonuses, tips and refunds
Records from any other rideshare or delivery platform used during the period
Banking and Payment Records
Bank statements showing platform deposits
Credit-card and debit-card statements used for business expenses
Separate business-account statements, if applicable
Loan or lease statements for the vehicle
Evidence of cash transactions or reimbursements
Vehicle and Expense Records
Logbook and odometer records
Fuel, servicing, tyre, repair and cleaning receipts
Registration, insurance and rideshare-insurance records
Toll statements and work-related parking receipts
Phone bills and evidence supporting the work-use percentage
Tax invoices supporting GST credits
Asset purchase documents and depreciation schedules
Reconcile Gross Uber Income Correctly
A common audit issue is reporting only the net amount deposited into the bank account. Uber statements may show gross fares and other income before Uber deducts service fees. For tax and GST reporting, you generally need to recognise the appropriate gross income and separately record deductible platform fees, rather than treating the net bank deposit as total revenue.
Start with the gross amounts in the Uber statements. Reconcile them to payouts received, then separately list Uber commissions, service fees, refunds and adjustments. Investigate every unexplained difference instead of forcing the totals to match.Recheck the GST Treatment of Rideshare Income
Ride-sourcing has special GST rules in Australia. Drivers providing taxi or ride-sourcing travel generally need to be registered for GST regardless of turnover. During a BAS review, the ATO may compare platform-reported fares with the GST reported at labels such as G1 and 1A and may examine whether GST credits at 1B are supported.
Review each BAS period independently. Confirm that income was allocated to the correct quarter or month, and account for refunds and adjustments consistently. Do not assume the bank deposit date always determines the correct BAS period; your accounting basis and the underlying transaction timing can matter.
Test Every GST Credit Before Defending It
A business expense is not automatically a valid GST credit. You generally need to have acquired the item for a creditable business purpose, be registered for GST, hold the required evidence and exclude private use. Some costs may not contain GST, and mixed-use expenses must be apportioned.
Expense | Audit question | Evidence | Common risk |
Fuel and servicing | What business-use percentage was applied? | Invoices, logbook and payment records | Claiming 100% where the car is also private. |
Insurance and registration | Does the cost include GST and was it apportioned? | Policy, invoice and business-use calculation | Assuming the full cash amount equals a GST credit. |
Phone and data | How was work use measured? | Bills and a representative usage calculation | Claiming the entire bill without evidence. |
Tolls and parking | Were the trips connected to earning income? | Toll account and trip records | Including private trips or fines. |
Vehicle purchase or lease | What is the ownership, financing and GST treatment? | Contract, tax invoice and finance documents | Claiming loan principal as an expense or mishandling purchase credits. |
Review the Car-Expense Method and Business-Use Percentage
Your income-tax car deduction and your GST-credit calculation are related but not identical exercises. Review whether you used the cents-per-kilometre method or logbook method correctly for income tax and whether the GST business-use percentage is supported. A logbook should reflect the required period and be representative of normal usage. Private kilometres, commuting that is private in nature and non-business trips should not be included as rideshare business use.
If the original logbook is missing or defective, do not invent a replacement. Ask your adviser whether a defensible reconstruction can be prepared from Uber trip data, odometer readings, service invoices, toll records and calendar information, and clearly disclose that it is reconstructed.
Prepare a BAS Reconciliation Schedule
A clear reconciliation often resolves questions faster than sending a large bundle of unsorted documents. Prepare one schedule for each BAS period showing how the figures were calculated.
BAS item | Reported | Recalculated | Difference | Explanation / evidence |
G1 Total sales | Uber gross fares and other taxable sales | |||
1A GST on sales | Reconcile to taxable rideshare income | |||
1B GST on purchases | Supported GST credits only | |||
Net amount | Reported outcome compared with recalculation |
Use a Profit & Loss Statement as an Organizing Document
A Profit & Loss statement does not replace invoices, Uber statements or logbooks, but it helps organise the story of the business. It should reconcile gross rideshare income, platform fees and operating expenses for the same period being reviewed. The P&L can also highlight duplicate expenses, missing income and unusual movements before you respond to the ATO.
Accounting Samurai’s AI-powered Profit & Loss Statement Generator can help classify transactions from bank and card statements and produce an initial report for review. The generated output should still be checked against Uber statements, tax invoices, GST rules and your business-use calculations before it is provided to the ATO.
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How to Answer an ATO Information Request
Restate the scope: identify the notice date, case reference, periods and questions being answered.
Provide a short cover letter explaining your business, the platforms used and your record-keeping method.
Answer each numbered question in the same order as the ATO request.
Attach indexed evidence with clear file names, such as “2025-Q1-Uber-Statement.pdf”.
Explain calculations and apportionment methods; do not merely provide totals.
Disclose genuine gaps or uncertainties and explain any reconstruction method.
Keep a complete, date-stamped copy of the submission and proof of delivery.
Do not bury the ATO in irrelevant material, but do not omit information needed to understand the calculation. A structured response is usually more persuasive than an unlabelled export of hundreds of transactions.
What to Do If You Find a Mistake
Finding an error before the ATO finalises the review is generally better than defending a figure you know is wrong. Quantify the error by period, identify the cause, and discuss the correction mechanism with your tax adviser or case officer. Depending on the circumstances, this may involve revising or amending a BAS or income tax return.
Voluntary disclosure and cooperation may be relevant to penalties, but the outcome depends on the facts and timing. Never make admissions about intentional conduct without professional advice where significant penalties or fraud allegations are possible.
Penalties, Interest and Repayment
An audit can result in additional GST or income tax, repayment of an incorrect refund, general interest charge, shortfall interest charge and administrative penalties. Penalties may depend on the nature of the conduct, such as failure to take reasonable care, recklessness, intentional disregard or false and misleading statements. The ATO may also consider remission requests based on the circumstances.
If you cannot pay the final amount in full, contact the ATO promptly to discuss payment options. A payment arrangement does not necessarily remove interest, but early engagement is usually better than ignoring the debt.
If You Disagree with the ATO’s Position
First, make sure you understand whether the document is a preliminary position, an amended assessment, a penalty decision or another reviewable decision. Ask for the reasons and calculations. You may be able to provide further evidence during the audit, request an internal or independent review in eligible small-business cases, lodge an objection, or pursue external review. Strict time limits can apply, so obtain advice quickly.
Common Mistakes that Weaken an Uber Driver’s Response
Reporting only net Uber deposits rather than reconciling gross fares and platform fees.
Claiming 100% of fuel, insurance, phone or vehicle costs despite private use.
Claiming GST credits without valid tax invoices or on expenses that do not contain GST.
Using a mileage estimate that cannot be reconciled to trip and odometer records.
Sending screenshots without a calculation or explanation.
Ignoring other platforms or cash income during the same period.
Changing records after the audit begins without preserving the original version.
Missing the response deadline and failing to request an extension.
Assuming a P&L statement alone proves every deduction.
Arguing emotionally rather than providing source evidence.
Preventing the Next BAS Audit Problem
Download Uber statements regularly rather than relying on indefinite platform access.
Use a separate bank account or card for rideshare transactions where practical.
Reconcile gross platform income to bank payouts every month or quarter.
Keep tax invoices digitally and link them to the relevant transaction.
Maintain a compliant logbook and odometer records.
Document business-use percentages for phone, vehicle and mixed expenses.
Generate and review a Profit & Loss statement before each BAS and annual return.
Keep records for the required retention period, generally at least five years, and longer where special rules apply.
Use a registered tax or BAS agent when your situation is complex.
ATO Audit Response Template
Dear [ATO officer name],
Re: [case reference] – BAS review for [periods]
I refer to your request dated [date]. I operate a ride-sourcing business using [platforms]. This response addresses each item in the order requested.
1. Income reconciliation
[Explain gross platform income, payouts, fees and attached schedules.]
2. GST on sales
[Explain the calculation and relevant BAS labels.]
3. GST credits and expenses
[Explain expense categories, business-use percentages and supporting invoices.]
4. Vehicle records
[Explain the logbook or other method and attach supporting records.]
Any reconstructed information is clearly identified and the underlying sources are described. Please contact me or my authorised representative if further information is required.
Kind regards,
[Name / authorized agent]
Frequently Asked Questions
Why would the ATO Audit an Uber Driver?
Triggers can include mismatches between platform data, bank deposits, BAS figures and tax returns; unusually large GST refunds; unsupported credits; missing income; or random and risk-based compliance activity. An audit does not by itself prove wrongdoing.
Does Uber Give the ATO Information?
The ATO receives information from a range of third parties and online platforms and can use data matching to compare reported income with external data. Drivers should assume their platform activity is visible and report all assessable income accurately.
Can I Respond without an Accountant?
You can respond yourself, but professional assistance is advisable where records are incomplete, the amounts are significant, the ATO is alleging serious conduct, or you are uncertain about GST and vehicle apportionment.
What if I Lost Receipts?
Tell the truth about the missing evidence. Other reliable evidence may help reconstruct some transactions, but bank statements alone do not always establish what was purchased, whether GST was included or the business purpose. Do not fabricate receipts.
How Long Should Uber Drivers Keep Records?
The ATO generally requires business and GST records to be kept for five years, although the starting point and special rules can vary. Keep records longer when they relate to assets, carried-forward losses, disputes or amended assessments.
Can the ATO Amend Old BAS Periods?
Time limits depend on the tax, taxpayer circumstances and conduct involved. Fraud or evasion and some other situations can extend or remove ordinary limits. Check the period of review and obtain advice for older periods.
Can I Object to an Amended Assessment?
Many ATO decisions can be challenged through the objection process, but eligibility, evidence requirements and time limits apply. Read the decision carefully and act promptly.
Resources
Final Takeaway
The most effective response to an ATO audit of an Uber driver is not a defensive argument. It is a clear reconciliation supported by contemporaneous records. Verify the notice, understand the scope, rebuild the figures carefully, disclose genuine errors and respond in an indexed, professional format. Where the financial exposure is material or the ATO raises penalties or deliberate conduct, obtain qualified advice before making substantive admissions.
