Tax mistakes are more common than most people realise and for gig workers, the combination of unusual income sources, complex deduction rules, and no employer to guide you through the process creates plenty of opportunity for errors.
The good news is that most tax mistakes are fixable. The ATO has a formal amendment process that allows you to correct your return, and in most cases if you act before the ATO contacts you the consequences are manageable.
This guide covers the most common tax mistakes Australian gig workers make, what the ATO is watching for, and exactly how to fix an error if you have already lodged.
Mistake 1: Not Declaring All Gig Income
This is the most common and most serious mistake. Many gig workers assume that income below a certain threshold does not need to be declared, or that the ATO will not notice smaller platform payments. Both assumptions are wrong.
Under the sharing economy reporting regime, all major gig platforms Uber, DoorDash, Amazon Flex, Deliveroo, Airtasker, and others are required to report the income they pay to drivers and contractors directly to the ATO. The ATO then matches this data against lodged tax returns. If your declared income does not match what the platform reported, you will receive a letter.
Income that must be declared includes: base fares and delivery fees, surge and peak pricing, tips paid through the platform, bonuses and incentive payments, and referral fees.
How to fix it: If you realize you have under-declared income, lodge an amendment as soon as possible (see the amendment section below). Voluntary disclosure before the ATO contacts you results in significantly lower penalties than waiting to be caught.
Mistake 2: Claiming 100% of Vehicle Costs with No Logbook
Many gig workers claim their full vehicle expenses as a deduction, arguing they use their car exclusively for work. Unless you genuinely have a dedicated work vehicle that you never use personally, the ATO will not accept a 100% work-use claim without a logbook to substantiate it.
The logbook method requires you to keep a continuous logbook for a minimum 12-week period, recording every trip (date, start and end odometer, destination, purpose). The percentage of work trips over that period becomes your claimable work-use percentage, which you apply to all vehicle costs for the year.
Without a logbook, you are limited to the cents-per-kilometre method, which caps your deduction at 5,000 kilometres per year regardless of how much you actually drove.
How to fix it: If you have already lodged with an inflated vehicle claim, amend your return to either apply the correct logbook percentage or switch to the cents-per-kilometre method. Start keeping a logbook immediately for next year.
Mistake 3: Not Registering for GST as a Rideshare Driver
All rideshare drivers in Australia regardless of income must register for GST. This is because the standard $75,000 GST threshold does not apply to ride-sourcing services. Many new Uber and DiDi drivers are unaware of this and operate without an ABN or GST registration for months before realising.
Failing to register means you have not been collecting or remitting GST, which is a compliance issue with the ATO.
How to fix it: Register for GST immediately through the ATO's Business Portal or myGov. You will then need to lodge backdated BAS statements for the periods you were unregistered. The ATO has a voluntary disclosure process for this situation and acting proactively results in lower penalties. A registered tax agent can help you navigate backdated BAS lodgements.
Mistake 4: Missing Legitimate Deductions
Under-claiming is not a mistake in the ATO's eyes, but it is a financial mistake for you. Common deductions that gig workers miss include:
Vehicle depreciation (Car Depreciation Guide for Rideshare Drivers in Australia)
Phone and data costs (Phone & Data Tax Deductions for Gig Workers in Australia)
Platform service fees and commissions
Work-related accessories (phone mount, dashcam, delivery bags, safety vest)
Tolls paid during working hours
Airport pickup fees
Parking fees paid during active work shifts
Income protection insurance premiums
Accounting and bookkeeping costs
👉 Uber Driver Tax Deductions List (Australia)
How to fix it: If you have already lodged and missed deductions, you can lodge an amendment to claim them — as long as you are within the amendment window (two years for most individuals, four years for businesses).
Mistake 5: Not Keeping Records
The ATO does not require you to submit receipts with your tax return, but it can ask for them at any time typically through a review or audit process. If you cannot produce records to substantiate a deduction, the ATO can disallow it and charge you the additional tax plus interest.
Records you need to keep for five years:
Bank and card statements showing income and expenses
Platform earnings summaries
Fuel receipts or fuel log
Logbook (if using the logbook method)
Four-week phone usage diary
Receipts for equipment and accessories
Toll account records
How to fix it: Implement a simple record-keeping system going forward. Download and save your bank statements monthly. Keep receipts digitally using a phone photo. Use Accounting Samurai to generate a P&L from your statements so your income and expenses are always organised and audit-ready.
👉 Generate Your Free Profit & Loss Statement Now
Mistake 6: Mixing Personal and Business Expenses in a Claim
Claiming personal expenses as business deductions whether intentional or accidental is a common audit trigger. Examples include claiming a holiday road trip as a work trip, claiming personal grocery orders as delivery-related expenses, or claiming a new personal phone as a 100% work device.
How to fix it: Apply genuine work-use percentages to all shared expenses. If a trip or purchase had any personal component, it must be apportioned. Amend your return if you have overclaimed in this way.
Mistake 7: Missing the Lodgement Deadline
The standard lodgement deadline for self-lodgers is 31 October. Missing this deadline without contacting the ATO first results in a Failure to Lodge (FTL) penalty of $330 per 28-day period you are late (up to $1,650 for very late returns).
How to fix it: Lodge as soon as possible, even if you cannot pay any tax owing. The penalty for late lodgement continues to accumulate until you lodge. If you cannot pay your tax debt immediately, the ATO has payment plan options available through the Business Portal or by calling 13 28 66.
If you use a registered tax agent, your lodgement deadline is extended typically to May of the following year which gives you significantly more time to prepare.
👉 ATO Deadlines Calendar for Gig Workers
👉 What Happens If a Gig Worker Doesn't Lodge a Tax Return with the ATO?
How to Amend Your Australian Tax Return
If you have already lodged a return and need to correct it, you have two options depending on how you lodged.
Option 1: Amend Online through myGov
Log in to myGov and select the ATO. Go to "Tax" then "Lodgements" and select the return you want to amend. Select "Amend" and make the required changes. Submit and the ATO will process the amendment, issuing either an additional bill or a refund.
Option 2: Lodge a Paper Amendment
Download and complete Form NAT 2696 (Tax return for individuals, supplementary section) or write a letter to the ATO explaining the changes. This method is slower and generally only used when myTax does not allow the specific type of amendment needed.
Option 3: Have a Tax Agent Amend on Your Behalf
A registered tax agent can lodge an amendment on your behalf and will communicate with the ATO if any clarification is needed. This is the recommended option for complex amendments involving back-dated GST, significant income adjustments, or multiple prior years.
Amendment time limits:
Individuals with simple tax affairs: 2 years from the original assessment date
Individuals with more complex affairs or business income: 4 years from the original assessment date
Will I be Penalised for Amending My Return?
Voluntarily amending your return before the ATO contacts you is treated much more favourably than waiting to be caught. If you self-identify an error and correct it:
Interest charges will apply on any additional tax owing from the original due date
Penalties may be reduced or waived entirely for genuine mistakes made in good faith
The ATO's voluntary disclosure policy explicitly rewards taxpayers who come forward before being audited
If the ATO contacts you first through a review letter or audit notification and then you amend, the penalty regime is significantly harsher.
Most gig worker tax mistakes come from a lack of awareness rather than dishonest intent and most are fixable. The most important things you can do are: declare all platform income, keep proper records throughout the year, claim deductions you are genuinely entitled to (and nothing more), and if you discover an error, amend promptly through myGov before the ATO gets in touch.
A clean Profit & Loss statement is your best defence against both errors and audits. Accounting Samurai generates one automatically from your bank statements, giving you a clear, organised record of your gig income and expenses every financial year.
