What Uber, Ola, Didi and taxi drivers need to know about GST, deductions, and BAS.
Unlike most sole traders, rideshare and taxi drivers must register for GST regardless of income — there's no $75,000 threshold. If you drive for Uber, Ola, Didi, or a taxi service, you need to register for GST from the very first fare.
For 2026-27, the rate is 91 cents per kilometre (88 cents for 2024-25 and 2025-26), but it's capped at 5,000 business kilometres per car per year — a maximum claim of around $4,550. Most rideshare and taxi drivers drive far more than 5,000km for work, since driving is the job, so this cap makes the method impractical for most full-time and even many part-time drivers.
This lets you claim the business-use percentage of your actual running costs — fuel, servicing, insurance, registration, and depreciation — with no kilometre cap. You keep a logbook for a continuous 12-week period to establish your business-use percentage, then apply that percentage to your actual costs for the full year.
For most rideshare and taxi drivers, where the vehicle is used overwhelmingly for work, the logbook method produces a significantly larger deduction than the cents-per-km cap allows.
| Vehicle deduction method comparison | |
|---|---|
| Cents per km (2026-27) | 91c/km, capped at 5,000km (~$4,550 max) |
| Cents per km (2024-25 & 2025-26) | 88c/km, same 5,000km cap |
| Logbook method | No km cap — claims actual % of real running costs |
| Car depreciation limit (2026-27) | $69,883 — the maximum vehicle cost you can depreciate from |
Because you're GST-registered from day one, you'll generally need to lodge a Business Activity Statement (BAS) regularly — usually quarterly — not just an annual tax return. Your BAS reports the GST you've collected on fares and the GST credits you're claiming on expenses.
Once your driving income reaches a certain level, the ATO may also ask you to prepay income tax through PAYG instalments, in addition to your regular BAS.
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