Uber, DiDi and Ola Drivers: GST From Your First Trip

Published 28 October 2026 · Every claim sourced — see references below

Short answer (as at 2026–27): if you drive for Uber, DiDi, Ola or a similar platform as an independent driver, you must have an ABN and be registered for GST before your first trip, whatever you earn. The usual $75,000 GST threshold that applies to most side hustles doesn’t apply to ride-sourcing. That catches many people out, because most side hustles can stay under the threshold for years.

Key points

ABN and GST registration are required from the day you start, regardless of income. The ATO’s only stated exception is if you’re an employee.
Ride-sourcing is taxi travel for GST purposes, which is why the $75,000 threshold doesn’t apply.
You report and pay GST through a BAS, monthly or quarterly. You can’t choose annual reporting.
GST applies to every dollar of fares, and you can claim GST credits on purchases for your ride-sourcing and other business activities, but not on personal purchases.
Income tax is separate: all ride-sourcing income goes in your tax return.
Platforms report driver income to the ATO, and have since 1 July 2023.

Why the threshold doesn’t apply

The ATO’s GST registration page lists the situations where you must register. One of them is when you provide taxi or limousine travel for passengers, including ride-sourcing, regardless of your GST turnover. It applies to owner-drivers and to people who lease or rent a taxi. The ATO’s ride-sourcing page explains that ride-sourcing is taxi travel for GST purposes, so the usual $75,000 rule doesn’t apply: you have to register regardless of how much you earn.

For other side hustles the position is different. Our guide on whether you need an ABN for a side hustle covers the general rules.

What counts as ride-sourcing

The ATO describes it as an ongoing arrangement where you use a car to transport passengers for a fare, and the passenger requests the ride through a third-party digital platform such as a website or app. Your ride-sourcing income is subject to both GST and income tax. This is different from food delivery, which is covered in our guide to the Fair Work delivery minimum pay order.

The ATO's exception is for employees. If you're unsure whether you're an independent driver or an employee, check with the ATO or a registered tax professional before relying on it.

Registering: ABN first, then GST

You need an ABN to register for GST. The ATO says you can get both at the same time through Online services for business, and a registered tax or BAS agent can do it for you. When applying for the ABN, the ATO’s page says to:

type “taxi ride sourcing” as your business description
select “taxi driver (except owner/operator)” or “taxi cab service”

When registering for GST, you register from the date you intend to start, or started, ride-sourcing, and you choose monthly or quarterly GST reporting. Once registered, give your ABN to the platform, as it may issue tax invoices for you.

If you already have an ABN but aren’t registered for GST, the ATO says you have to register within 21 days from when you start providing ride-sourcing services. If you’re already registered for GST for another reason, for example as an IT contractor, you can use the same registration.

Penalties and interest may apply if you don’t register. The GST registration page adds that if you were required to register and didn’t, you may have to pay GST on sales since the date you were required to, even if you didn’t charge GST in the price.

Reporting and paying GST: the BAS

Once you’re registered for GST you lodge a business activity statement (BAS). The ATO says:

You can lodge online (through Online services for individuals and sole traders via myGov, Online services for business, or software), through a registered tax or BAS agent, or by mail.
For ride-sourcing you report monthly or quarterly, and you can’t choose annual reporting.
Even if you have nothing to report, you still lodge a “nil” BAS by the due date.
The due date for lodging and paying is shown on your BAS.

On the ATO’s GST reporting page, businesses with a GST turnover under $20 million report quarterly unless the ATO has told them to report monthly. Check the ATO’s page on due dates for the dates that apply to you.

GST applies to every dollar you earn as a ride-sourcing driver. You report and pay the GST collected on fares, and claim GST credits on purchases relating to ride-sourcing and other business activities, but not on purchases for personal use. See also our guide to how side hustle income is taxed. The ATO doesn’t tell drivers which software to use, and neither do we.

Tax invoices

The ATO says to issue a tax invoice for fares over $82.50 (including GST) if a passenger asks for one. The ATO also notes that the platform may issue tax invoices for you once you’ve given it your ABN.

Income tax and deductions

Registering for GST doesn’t replace income tax. The ATO says all money earned from ride-sourcing is assessable income and goes in your tax return, and that you:

claim only deductions related to transporting passengers for a fare
apportion expenses to the time you’re providing a ride-sourcing service
keep records of income and expenses (the ATO points to the free myDeductions tool in the ATO app)

The ATO also says fuel tax credits aren’t available for fuel used in light vehicles on public roads, including for ride-sourcing. For the wider picture of how extra income is taxed, see tax time for side hustlers, and our side hustle tax calculator.

Will the ATO know about your income?

Yes, in the sense that platforms report. Under the Sharing Economy Reporting Regime, electronic distribution platform operators report supplier income to the ATO twice a year, by 31 January (for 1 July to 31 December) and 31 July (for 1 January to 30 June). Reporting started on 1 July 2023 for platforms supplying taxi services, including ride-sourcing, and short-term accommodation.

Common mistakes

Waiting until earnings are higher. The $75,000 test doesn’t apply to ride-sourcing.
Registering for an ABN but not for GST. The ATO says both are needed.
Choosing annual GST reporting. It isn’t available for ride-sourcing.
Claiming GST credits or deductions for personal use. Only the part used for ride-sourcing counts.
Forgetting a nil BAS. If there’s nothing to report, you still lodge.

Where to get help

The ATO’s ride-sourcing pages and its ride-sourcing drivers factsheet are the starting point, and the ATO has a Business enquiries line. A registered tax or BAS agent can register you and lodge for you.

This guide explains the rules as at 28 October 2026 and is general information, not tax, legal or financial advice. The ATO's ride-sourcing pages were last updated in 2025 and its GST registration and BAS pages in September 2026. Check the ATO website for the current version.

Frequently asked questions

Do Uber and DiDi drivers need to register for GST?

Yes. The ATO says ride-sourcing drivers must have an ABN and be registered for GST from the day they start, regardless of how much they earn. The only exception the ATO gives is if you're an employee.

Why doesn't the $75,000 GST threshold apply to rideshare?

The ATO says ride-sourcing is taxi travel for GST purposes, and the standard rule for a GST turnover of $75,000 or more doesn't apply to it.

How often do rideshare drivers lodge a BAS?

The ATO says you report your GST monthly or quarterly. When registering for ride-sourcing you can't choose annual reporting.

Do I have to give passengers a tax invoice?

The ATO says to issue a tax invoice for fares over $82.50 (including GST) if a passenger asks for one.

Can rideshare drivers claim fuel tax credits?

The ATO says fuels used in light vehicles on public roads, including for ride-sourcing, are not eligible for fuel tax credits.

Do I pay GST if I only drive part-time?

Yes. The ATO says the requirement applies regardless of how much you earn, so a few hours a week is treated the same as full-time.

Sources

This article is general information only, not tax, legal or financial advice. It doesn't consider your personal circumstances. For advice on your situation, speak to a registered tax agent or licensed adviser, and always check current requirements with the official source linked above.