Delivering for Uber Eats, DoorDash or Menulog puts money in your account each week, but no tax comes out of it. That means you are responsible for reporting the income, claiming the right expenses and having money ready when your tax bill arrives.
This guide covers delivery rider tax for the 2025-26 return now being lodged and the 2026-27 year: ABNs, income reporting, when GST applies, car and phone deductions, records and the platform reporting rules. Every figure was checked against the ATO sharing economy guidance and the ATO ride-sourcing registration rules.
It is written for food and parcel delivery riders and drivers working as contractors through apps. If you are new to running your own ABN, our guide to ABN basics is a good place to start.
Key takeaways
- All delivery income is assessable and goes in your tax return.
- Food delivery only: GST registration is required once business turnover reaches $75,000.
- Rideshare (carrying passengers): you must register for GST before your first trip, whatever your turnover.
- Car expenses: 88c per km for 2025-26 and 91c for 2026-27, up to 5,000 km, or the logbook method.
- Platform service fees are 100% deductible; phone and car costs only for the business share.
- Platforms report your payments to the ATO twice a year.
Delivery driver tax at a glance
| Item | Food or parcel delivery only | Also doing rideshare |
|---|---|---|
| Income tax | All earnings assessable | All earnings assessable |
| GST registration | When GST turnover reaches $75,000 | Before your first passenger trip, regardless of turnover |
| GST on delivery income | Only once registered | Yes, on all business income under the same ABN |
| Car expenses | Cents per km or logbook | Cents per km or logbook |
| Platform reporting to ATO | Reported since 1 July 2024 | Ride-sourcing reported since 1 July 2023 |
Source: ATO – how GST applies when providing services, ATO – ride-sourcing registrations, ATO – what is the SERR, ATO – car expenses 2026, checked 7 October 2026.
Is delivery work a business for tax purposes?
The ATO lists food delivery and on-demand parcel delivery as “providing services” in the sharing economy, and says income tax and GST apply to those earnings. Most delivery apps engage riders as independent contractors and ask for an ABN. Your status depends on the actual arrangement, so check the ATO guide on employee or contractor if you are unsure.
As a contractor, no tax is withheld from your payouts. You declare the income in your individual tax return as a sole trader.
How do you report delivery income?
The ATO says what you earn is assessable income and must be reported in your tax return, even a one-off payment. Include everything paid to you through each app. Download the earnings statements from each platform at the end of June.
Under the sharing economy reporting regime, platforms report payments made to sellers twice a year: by 31 January for July to December, and by 31 July for January to June. Ride-sourcing and short-term accommodation have been reported since 1 July 2023, and all other reportable transactions since 1 July 2024. The ATO matches this data against your return.
When do delivery drivers need to register for GST?
For food or parcel delivery alone, the normal rule applies. You must register for GST once your GST turnover reaches $75,000, and the ATO says you count income from all your businesses, not just one app. Once registered, you lodge activity statements; see our BAS guide.
Ride-sourcing is different. The ATO ride-sourcing rules state that drivers must have an ABN and be registered for GST before the first trip, and the $75,000 threshold does not apply. If you use the same ABN for rideshare and delivery, GST applies to both. Read our GST registration guide for the steps.
What can delivery drivers claim?
The ATO deduction rules for providing services say you must have paid the cost yourself, it must relate directly to earning the income, and you need records. For mixed-use items, claim only the business share.
| Expense | How to claim |
|---|---|
| Platform service fees or commission | 100% deductible |
| Car running costs | Cents per km (up to 5,000 km) or logbook method |
| Motorbike, scooter or bicycle | Business share of actual costs, with records |
| Mobile phone and data | Business share, based on a reasonable record of use |
| Delivery bags, phone mounts, safety gear | Business share of cost |
Car expense methods
- Cents per kilometre – 88c per km for 2025-26 and 91c for 2026-27, for up to 5,000 business km per car (ATO car expense rates). Keep a reasonable record of how you worked out your business kilometres.
- Logbook – keep a logbook for at least 12 continuous weeks, recording odometer readings and each trip. The business-use percentage applies to all car costs, and the logbook is valid for five years.
Our list of sole trader tax deductions covers more expenses.
Worked example: Harpreet delivers food in 2025-26
Harpreet delivers food by car and earns $40,000 from delivery apps in 2025-26. He has no other income and does no rideshare work.
Car: 4,200 business km x $0.88 = $3,696.
Phone: $70 a month x 12 = $840, used 40% for deliveries, so $840 x 40% = $336.
Taxable income: $40,000 – $3,696 – $336 = $35,968.
Income tax: ($35,968 – $18,200) x 16% = $17,768 x 16% = $2,842.88. Less the low income tax offset of $700 = $2,142.88, plus Medicare levy (ATO resident tax rates).
GST: not required, because his turnover is under $75,000 and he does not carry passengers.
How should you prepare for the tax bill?
Because no tax is withheld, set money aside each week. The ATO preparing for a potential tax bill page explains you can make voluntary prepayments at any time. If you are not sure how much to put away, check the tax rates for your income and talk to a tax agent rather than relying on a flat percentage.
Super is voluntary for contractors, but you can contribute for yourself and may be able to claim a deduction. Our sole trader super guide explains how.
What records should delivery drivers keep?
The ATO sharing economy record rules require platform income statements, receipts for expenses you claim and motor vehicle records for the method you use. Keep them for five years. The ATO myDeductions tool lets you record trips and photograph receipts.
Rule of thumb: Treat every delivery app as one business. Add up income across all apps, track kilometres every week, and register for GST before your first rideshare trip if you ever carry passengers.
Common mistakes delivery drivers make
- Leaving out an app – platforms report to the ATO, so mismatches are easy to spot.
- Forgetting rideshare changes GST – one passenger trip means GST registration first.
- Claiming 100% of the car or phone – only the business share is deductible.
- Using old car rates – 85c and 78c per km are out of date.
- No kilometre record – even the cents per km method needs a reasonable basis for the km claimed.
FAQ about tax for delivery drivers
Do Uber Eats and DoorDash riders need to register for GST?
Not if you only deliver food or parcels and your total business turnover is under $75,000. Count income from all your business activities, not just one app. Ride-sourcing is different: if you also carry passengers, you must register for GST before your first trip, regardless of turnover, and GST then applies to all your business income.
Do I have to declare delivery income if I only work a few hours?
Yes. The ATO says what you earn providing services through a platform is assessable income and must be reported in your tax return, even if it is a one-off payment. Platforms also report payments to the ATO under the sharing economy reporting regime, so missing income is likely to be picked up.
What car expenses can a delivery driver claim?
If you use a car, you can use the cents per kilometre method, at 88 cents per km for 2025-26 and 91 cents for 2026-27, capped at 5,000 business km. Or use the logbook method, keeping a logbook for at least 12 continuous weeks and claiming the business share of actual car costs. The logbook stays valid for five years.
Can I claim my phone and platform fees?
Yes. Service fees or commission charged by the platform are fully deductible. For your phone, claim only the business share of the cost, based on a reasonable record of how much you use it for deliveries. Keep your phone bills and a note of how you worked out the percentage.
Do I need to pay super as a delivery rider?
If you are an independent contractor, nobody has to pay super for you, and contributing for yourself is voluntary. You can make personal contributions and may be able to claim a tax deduction if you lodge a notice of intent with your fund. If you are actually an employee, your employer must pay super guarantee.
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Talk to a registered tax agent
Nanak Accountants can set up your ABN, check whether you need GST, work out your car and phone claims and lodge your return. We work with delivery riders in English, Punjabi, Hindi and Nepali. Call 1300 626 258 to book a time.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO sharing economy, ride-sourcing registration, GST for providing services, SERR, logbook method, car expense rates, record keeping and resident tax rates pages on 7 October 2026. Rates and thresholds change, so confirm the current position before acting.
