Uber has taken Australia by storm, with many Australians using it to earn extra income and get around more easily. But if you don’t handle your taxes properly, you could face serious Uber driver tax return issues.
Earning side income with Uber is easy—as long as you have a car, you can start driving. However, you must understand how to manage your tax obligations from the beginning. Without proper tax planning, you could end up with a significant ATO tax debt, potentially in the thousands or even tens of thousands of dollars.
When you drive for Uber, you aren’t an employee—you’re a contractor. While Uber provides the platform, you are responsible for your tax obligations. According to Uber:
“All Uber partners are independent contractors, so we do not withhold any taxes and partners are entirely responsible for their tax obligations.”
Although the ATO currently recognises Uber drivers as contractors, it’s reviewing this classification and considering whether they should be deemed employees. If that happens, Uber’s operations in Australia could face new challenges.
Key Tax Rules Every Uber Driver Should Know
As a contractor, you need to stay on top of your tax responsibilities to avoid trouble. The ATO treats all money earned from Uber as taxable income, so you must declare it on your tax return.
Even if you earn less than the $75,000 GST income threshold, you still need to register for GST and lodge your BAS (Business Activity Statement) quarterly.
Here’s what you need to remember when preparing your Uber tax return:
Keep all valid invoices for five years, as the ATO may audit you within that time.
Maintain a valid logbook to claim vehicle-related deductions like fuel, repairs, loan interest, and more.
If you provide passengers with tissues or lollies, you might be able to claim these as deductions—check with us to find out if you qualify.
Make sure to claim work-related expenses, such as mobile phone and internet usage, on a pro-rata basis.
Need Help with Your Uber Tax Return?
While there’s growing demand from Uber drivers to be recognised as employees, Uber continues to resolve legal actions to maintain their contractor model. As a contractor, you must stay compliant with your tax obligations.
At Endurego, John has helped many Uber drivers sort out their tax affairs and avoid hefty ATO debts. If you want expert help with your Uber driver tax return, call us today at 0410 829 900 to book an appointment.
