If you drive for Uber, DiDi, or any other rideshare platform in Australia, GST is the tax obligation that catches most new drivers by surprise. Unlike food delivery or freelance work, rideshare drivers must register for GST and pay it on their earnings from the very first dollar regardless of how little they earn and regardless of whether they have a full-time job on the side.
This guide cuts through the confusion and tells you exactly how much GST you owe, how the quarterly BAS process works, what GST credits you can claim to reduce your bill, and the key differences between rideshare and delivery GST rules.
Key rule: All rideshare drivers in Australia must register for GST regardless of income. The standard $75,000 GST threshold does NOT apply to ride-sourcing. This is the single most important thing to understand before you take your first trip.
Why Do Rideshare Drivers Have to Pay GST?
The ATO classifies rideshare driving as a ride-sourcing enterprise. Under Australian law, this is treated the same as a taxi service for GST purposes — and taxi drivers have always been required to register for GST from the first dollar they earn, regardless of annual turnover.
This rule was extended to cover rideshare platforms in 2015, when the ATO determined that services like Uber are functionally equivalent to taxi services. The relevant legislation is in the A New Tax System (Goods and Services Tax) Act 1999, specifically the provisions covering taxi travel.
The practical consequence is that every rideshare driver whether they earn $200 a week or $2,000 a week is required to:
Hold an ABN
Register for GST before taking their first trip
Lodge a Business Activity Statement (BAS) every quarter
Remit 1/11th of their gross fares to the ATO as GST
Claim GST credits on their business expenses to reduce the net amount owed
How Much GST Do Rideshare Drivers Actually Pay?
The GST rate in Australia is 10%. However, because GST is included in the price of goods and services rather than added on top, the amount you owe on income you have already received is calculated as 1/11th, not 10%.
The 1/11th Rule Explained
When a passenger pays $22 for a ride, that $22 already includes GST. The GST component is:
$22 ÷ 11 = $2.00 in GST
The remaining $20 is your income. So on every $11 of gross fares you receive, $1 belongs to the ATO. This is sometimes called the GST-inclusive calculation and it applies to your total gross fares, not your take-home pay after Uber's or DiDi's commission.
A Worked Example
Say you earned $3,300 in gross Uber fares in a quarter before any deductions or platform fees.
Gross fares: $3,300
GST component (÷ 11): $300
GST-exclusive income: $3,000
You would owe $300 in GST for that quarter before claiming any GST credits on your expenses.
Important: GST Is Calculated on Gross Fares, Not Your Take-Home Pay
This surprises many drivers. Uber, DiDi and other platforms deduct their service fee (typically 25-27.5%) from the gross fare before paying you. However, the ATO requires you to remit GST on the full gross fare including the portion the platform kept.
For example, if the gross fare was $22 and Uber kept $5.50 as its commission, you received $16.50 but you still owe $2.00 in GST (1/11th of $22), not 1/11th of the $16.50 you received.
This is why understanding your gross earnings figures, not just your bank deposits, is essential. Your Uber or DiDi driver app earnings dashboard shows gross fares, service fees, and net earnings separately. Always use the gross figure for GST calculations.
How to Get Your Gross Fares from Each Platform
Uber
Log in to the Uber Driver app or the Uber Driver dashboard online. Navigate to Earnings > Statements. You can download a weekly or monthly earnings summary showing gross fares, Uber's service fee, and any adjustments. For BAS purposes, add up all gross fares for the quarter.
DiDi
Log in to the DiDi Driver app. Navigate to My Earnings > Earnings History. DiDi shows your gross trip income, applicable fees, and net deposits. Export or screenshot the quarterly summary for your BAS records.
Ola
Access your earnings history through the Ola Driver app under the Earnings section. Download your statement for the relevant quarter showing trip income and service fees.
Amazon Flex (If You Also Do Rideshare)
If you deliver for Amazon Flex in addition to rideshare, your Amazon Flex income is also subject to GST once you are registered because your GST registration applies to all ABN activities. Download your Amazon Flex earnings statement from the Amazon Flex app under Earnings History.
For more on managing multiple income streams, see Amazon Flex Earnings Statement: How Drivers Can Show Real Income with a Profit & Loss Statement.
What Are GST Credits and How Do They Reduce Your Bill?
GST credits (also called Input Tax Credits or ITCs) allow you to claim back the GST you paid on business expenses. This directly reduces the amount of GST you must remit to the ATO. The ATO's explanation of GST credits is at ato.gov.au/GST-credits.
How GST Credits Work
If you spend $110 on fuel for your rideshare car, that fuel price includes $10 in GST. As a GST-registered business, you can claim that $10 back as a GST credit reducing your net GST bill by $10.
Continuing the earlier example:
GST on gross fares: $300 (amount owed to ATO)
GST credits on fuel ($440 of fuel): $40
GST credits on insurance ($220): $20
GST credits on phone bill ($66): $6
Net GST payable: $234 (instead of $300)
Which Expenses Give You GST Credits?
You can claim GST credits on any business expense where GST was charged by the supplier and you have a valid tax invoice. For rideshare drivers this includes:
Fuel and oil (GST is embedded in fuel prices)
Vehicle servicing and repairs (where the mechanic is GST-registered)
Comprehensive car insurance (work-related portion)
Phone plan and data (work-related portion)
Vehicle accessories; dashcam, phone mount, car charger
Cleaning products or car wash services
Accounting and bookkeeping services
You cannot claim GST credits on expenses where GST was not charged such as registration and CTP insurance (these are government charges and exempt from GST), or private expenses.
The Tax Invoice Requirement
To claim a GST credit on a single expense over $82.50, you must hold a valid tax invoice from the supplier. For fuel, the docket is usually sufficient. For phone bills and insurance, your monthly statement or policy document serves as the tax invoice. Keep these records for at least five years.
The Work-Related Portion Rule
If you use an asset or service for both work and personal purposes, you can only claim the GST credit for the work-related portion. This mirrors the income tax deduction rules.
For example, if your phone plan costs $66 per month (including $6 GST) and your work-related usage is 70%, your GST credit for that bill is:
$6 × 70% = $4.20 GST credit
The same logic applies to vehicle expenses if you use your car for personal trips as well as rideshare. Your logbook percentage determines what portion of GST credits you can claim on running costs.
For a detailed breakdown of the logbook method, see Car Depreciation Guide for Rideshare Drivers in Australia.
What Is a BAS and How Do You Lodge It?
A Business Activity Statement (BAS) is the form you use to report and pay your GST to the ATO. All GST-registered rideshare drivers must lodge a BAS every quarter. The ATO's BAS information is at ato.gov.au/BAS.
BAS Quarters and Due Dates
The four BAS quarters and their standard due dates are:
Quarter 1: July to September: due 28 October
Quarter 2: October to December: due 28 February
Quarter 3: January to March: due 28 April
Quarter 4: April to June: due 28 July
If you lodge through a registered BAS agent or tax agent, you may be eligible for extended due dates. For a full calendar of ATO deadlines, see ATO Deadlines Calendar for Gig Workers.
What Goes on Your BAS?
Your BAS reports:
G1 — Total sales: Your total gross fares for the quarter (GST-inclusive)
1A — GST on sales: 1/11th of your total gross fares (the GST you collected)
1B — GST credits: The GST you paid on business expenses (reduces your bill)
Net GST payable: 1A minus 1B, this is what you remit to the ATO (or receive as a refund if credits exceed GST owed)
How to Lodge Your BAS
You can lodge your BAS through the ATO's Online Services for Business portal (linked to your myGovID), through myGov if you are a sole trader, through accounting software that supports BAS lodgement, or through a registered BAS agent or tax agent.
Most rideshare drivers lodge their own BAS through myGov or the ATO Business Portal once they have their quarterly figures ready. The process takes around 15-30 minutes once you know your gross fares and expense totals for the quarter.
Paying Your BAS
You can pay your net GST by BPAY, direct debit, or through the ATO's online payment options. Always pay by the BAS due date to avoid the General Interest Charge (GIC) which accrues daily on unpaid amounts.
What If You Also Do Delivery (Not Just Rideshare)?
This is one of the most important questions for multi-platform gig workers.
If You Do Rideshare AND Delivery
Once you are registered for GST because of your rideshare activity, that registration applies to ALL income on your ABN including any delivery income from Uber Eats, DoorDash, or Amazon Flex. This means:
You must include your delivery income in your BAS as well as your rideshare income
You must remit 1/11th of your gross delivery earnings as GST too
You can claim GST credits on delivery-related expenses (delivery bags, e-bike running costs, etc.)
This combined obligation is an important consideration for drivers who do both. Delivery-only workers are not required to register for GST unless they exceed $75,000 in annual ABN income but once rideshare is added, the entire ABN is brought into the GST system.
If You Only Do Delivery (No Rideshare)
If you only deliver for platforms like Uber Eats, DoorDash, or Amazon Flex and do no rideshare, the standard $75,000 GST threshold applies. You do not need to register for GST unless your total ABN income exceeds $75,000 per year.
Registering for GST: Step by Step
If you have not yet registered for GST, do so before you take your first rideshare trip. Registering after you have already started driving creates backdated GST obligations and can result in penalties.
Apply for an ABN at the Australian Business Register if you do not already have one.
Register for GST through the ATO's Business Registration Service or through the ATO's Online Services for Business portal.
Choose quarterly BAS lodgement (the default for most small businesses).
Set up a system to track your quarterly gross fares and business expenses from day one.
For a full walkthrough of both ABN and GST registration, see Gig Worker ABN & GST Registration Guide for Gig Workers (Australia).
Common GST Mistakes Rideshare Drivers Make
Calculating GST on Net Pay Instead of Gross Fares
Many drivers mistakenly calculate GST on the amount deposited into their bank account after Uber or DiDi has taken their commission. GST must be calculated on the gross fare amount, not your net deposit. Always use the gross figures from your platform's earnings statement.
Not Registering Before the First Trip
Operating as a rideshare driver without GST registration is a compliance breach from your first trip. If the ATO identifies this through data matching (platforms report income data under the sharing economy reporting regime), you may face backdated GST liabilities plus the Failure to Lodge penalty.
Missing a BAS Due Date
A missed BAS triggers a Failure to Lodge penalty of $330 per 28-day period (up to $1,650). Lodge your BAS on time even if you cannot pay immediately, lodging without payment stops the FTL penalty clock. You can then arrange a payment plan for the GST amount owed.
Forgetting to Claim GST Credits
Many drivers pay more GST than they owe because they forget to claim credits on their expenses. Every quarter, before you finalise your BAS, go through your business expenses and add up the GST credits available. The difference between claiming and not claiming can be $50-$200 per quarter for an average driver.
Mixing Personal and Business Expenses
Only claim GST credits on the business-use portion of shared expenses. Claiming 100% of a shared phone or vehicle cost is incorrect and creates risk if the ATO reviews your return.
For a comprehensive guide to avoiding these and other mistakes, see Common Gig Worker Tax Mistakes in Australia and How to Fix Them.
How GST Interacts with Your Annual Income Tax Return
GST and income tax are separate obligations reported separately. Your annual income tax return deals with income tax, not GST. However, the two interact in an important way:
Your income tax return uses GST-exclusive income figures (i.e., gross fares minus the GST component)
Your deductible expenses in your income tax return are also GST-exclusive (you have already claimed the GST back through your BAS)
Platform service fees are deductible as a business expense in your income tax return
This separation means you effectively account for GST quarterly via BAS, and income tax annually via your tax return using the net (GST-exclusive) figures for both.
A Profit & Loss statement makes this reconciliation straightforward by showing your GST-exclusive income and expenses clearly. The Accounting Samurai P&L Generator generates this automatically from your bank and card statements — giving you the exact figures you need for both your BAS and your annual tax return.
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For more on how rideshare tax returns work, see Rideshare Driver Tax Preparation: Step-by-Step Guide for Uber & DiDi Drivers.
How to Reduce Your GST Bill Legally
There is no way to avoid paying GST on your rideshare fares, it is a legal obligation. However, you can minimise your net GST bill by maximising the GST credits you claim on legitimate business expenses.
The most impactful GST credits for rideshare drivers are:
Fuel: High-volume drivers can spend $3,000-$8,000 per year on fuel. At 1/11th, that is $273-$727 in GST credits per year.
Vehicle servicing: Regular servicing on a high-kilometre vehicle adds up quickly. GST credits on servicing reduce your quarterly BAS significantly.
Phone plan: The work-related portion of your monthly phone bill generates quarterly GST credits. See Phone & Data Tax Deductions for Gig Workers in Australia.
Accounting tools: GST on the cost of tools like the Accounting Samurai P&L Generator is also creditable.
Good record-keeping is the key. If you cannot substantiate an expense, you cannot claim the credit. Keep tax invoices, bank statements, and platform earnings records for at least five years.
Setting Aside Money for GST Throughout the Quarter
Because GST is paid quarterly rather than annually, you need a system to set aside the right amount throughout each quarter rather than scrambling when BAS is due.
A practical approach used by many rideshare drivers:
Open a dedicated GST savings account. Each week, transfer 1/11th of your gross fares into this account. If you earned $800 gross this week, transfer $72.73 to your GST account.
At the end of each quarter, calculate your total GST credits on expenses and subtract them from your accumulated GST savings. The remainder is your net GST payable.
Lodge your BAS and pay the net amount from your GST account. The balance left over (from credits) can be transferred back to your main account.
This approach means you never face a surprise BAS bill and you always have the funds available when lodgement is due.
Generating Your P&L Statement for BAS and Tax Time
Whether you are preparing your quarterly BAS or your annual income tax return, a clean Profit & Loss statement makes the process significantly faster and more accurate. The Accounting Samurai P&L Generator automatically processes your bank and card statements to identify your rideshare income, categorise your expenses, and produce a formatted statement showing both your GST and non-GST figures.
This is especially valuable if you drive for multiple platforms Uber and DiDi, or rideshare plus Amazon Flex as it consolidates all income streams into a single report. For more on why a P&L statement matters, see Profit & Loss Statements for Gig Workers: What They Are and Why They Matter and Why Every Delivery Driver Needs a Profit and Loss Statement (With Examples).
👉 Generate Your Free Profit & Loss Statement Now
Frequently Asked Questions
Do I Pay GST on My Entire Uber Earnings or Just My Profit?
You pay GST on your gross fares; the total amount passengers paid, including the portion Uber keeps as its commission. GST is not calculated on your profit. However, you reduce your net GST bill by claiming GST credits on your business expenses, which effectively means you pay GST only on your value-add.
Does Uber Collect GST on My Behalf?
No. Uber collects fares from passengers on your behalf but does not remit GST to the ATO for you. You are responsible for your own GST obligations. Uber provides an ABN and GST summary in the driver app to help you track your gross fares for BAS purposes, but the lodgement and payment are your responsibility.
Can I Claim GST Credits on My Car Purchase?
Yes, but only the work-related portion and subject to the luxury car limit. If you purchase a vehicle specifically for rideshare work, you can claim GST credits on the business-use portion of the purchase price. This is typically handled through your BAS in the quarter of purchase. Consult a registered tax agent for large vehicle purchases to ensure the claim is structured correctly.
What If I Cannot Pay My BAS on Time?
Lodge your BAS on time regardless of whether you can pay. This stops the Failure to Lodge penalty. Then contact the ATO on 13 28 66 to arrange a payment plan. Interest (the General Interest Charge) will continue to accrue on the unpaid amount, but you avoid the escalating FTL penalty.
I Have Been Driving Without GST Registration. What Should I Do?
Register immediately at the ATO's Business Registration Service and contact the ATO to arrange backdated lodgements. Voluntarily coming forward results in significantly lower penalties than waiting for the ATO to identify the issue through data matching. A registered tax agent can help you lodge backdated BAS statements correctly. For a full guide to voluntary disclosure, see What Happens If a Gig Worker Doesn't Lodge a Tax Return with the ATO?.
Does GST Affect My Income Tax Return?
Yes, indirectly. Your income tax return uses GST-exclusive figures for both income and expenses. The GST you collected is not your income, it belongs to the ATO. And the GST you paid on expenses is not a deductible cost, you have already claimed it back through your BAS. Your income tax deductions are the GST-exclusive amounts only.
Related Reading
Gig Worker ABN & GST Registration Guide for Gig Workers (Australia)
Rideshare Driver Tax Preparation: Step-by-Step Guide for Uber & DiDi Drivers
Car Depreciation Guide for Rideshare Drivers in Australia
Uber Driver Tax Deductions List (Australia)
Phone & Data Tax Deductions for Gig Workers in Australia
Common Gig Worker Tax Mistakes in Australia and How to Fix Them
What Happens If a Gig Worker Doesn't Lodge a Tax Return with the ATO?
ATO Deadlines Calendar for Gig Workers
Tax Agent vs DIY: What Should Australian Gig Workers Do at Tax Time?
Profit & Loss Statements for Gig Workers: What They Are and Why They Matter
Why Every Delivery Driver Needs a Profit and Loss Statement (With Examples)
How Uber Drivers Can Prove Income for Loans, Rentals, and Mortgages
Proof of Income for Uber Drivers: What Documents Work Best
Amazon Flex Earnings Statement: How Drivers Can Show Real Income with a Profit & Loss Statement
Simple Bookkeeping Tips for Uber and Delivery Drivers (No Accountant Needed)
Best Bookkeeping Apps for Uber Drivers (2026 Guide)
QuickBooks vs P&L Generators for Gig Workers
Uber Eats Tax Deductions Explained: What You Can and Can't Claim
