๐ Uber Driver / Rideshare Tax Deductions Australia
Uber, Ola, DiDi & Rideshare Drivers โ your complete 2026 ATO guide.
Last updated: May 2026
If you drive for Uber, Ola, DiDi or any rideshare platform in Australia, you're running a small business โ even if it's a side hustle. That means the Australian Taxation Office (ATO) lets you claim a deduction for almost every dollar you spend keeping your wheels turning. Get it right and you can save thousands. Get it wrong and you could end up owing money back. This guide covers every deduction available in the 2025โ26 financial year.
The 3 ATO golden rules
To claim a work-related deduction, you must meet all three:
- You paid for it personally and weren't reimbursed.
- The expense directly relates to earning your income.
- You have a record (usually a receipt).
โ Fully deductible 13 items
Car wash and cleaning supplies
Cleaning supplies for your rideshare vehicle are deductible.
Mints, water and amenities for passengers
Small amenities provided to passengers are deductible.
Phone mount and car charger
Equipment used for your rideshare work is deductible.
Dashcam (work use)
A dashcam used for rideshare driving is deductible.
Vehicle registration (work-use portion)
The work-use portion of your registration is deductible.
Rideshare licence / accreditation (state-specific)
Mandatory state rideshare accreditation is deductible.
Police check / medical for rideshare
Background checks required to drive are deductible.
ABN registration costs
Costs to set up and maintain your ABN for rideshare work are deductible.
Tax agent fees (last year)
Tax agent fees paid last year are deductible on this year's return.
Bookkeeping and accounting software
Software you use to track rideshare income and expenses is deductible.
Bank fees on a dedicated rideshare account
Bank fees on an account used exclusively for rideshare are deductible.
Rideshare-specific insurance
Rideshare-specific insurance premiums are deductible.
Rideshare platform service fees
Fees Uber/Ola/DiDi take from your earnings are deductible.
โ ๏ธ Partially deductible 5 items
These costs are split between work and private use. You can only claim the work-use percentage โ keep a 4-week diary or 12-week logbook.
Work-related car expenses
Travel between workplaces or to client sites is deductible; commute is not. Use cents-per-km (up to 5,000km) or logbook method.
Fuel (work-use portion)
The work-use portion of fuel is deductible โ track with logbook method.
Vehicle repairs and servicing (work-use portion)
Repairs and servicing are deductible at your work-use percentage.
Vehicle depreciation
Depreciation of your vehicle is deductible at your work-use percentage.
Mobile phone (work-related use)
Work-related calls, messages and data are deductible at the work-use percentage based on a 4-week log.
โ Not deductible 2 items
Common audit traps. Claiming these can trigger ATO review and penalties.
Driving fines and parking infringements
Fines and penalties are never deductible, even when incurred during work travel.
General clothing (non-uniform)
Conventional clothing worn to work is not deductible, even if your employer requires it.
Need help lodging your return?
ALI Tax's qualified agents handle returns Australia-wide. Average refund: $2,847.
Get started with ALI Tax โFrequently asked questions
Do I need an ABN to drive for Uber?
Yes. Rideshare drivers must have an ABN and register for GST regardless of income โ this is one of the few industries where the $75,000 GST threshold doesn't apply.
Can I claim the cost of buying my car?
Not as a lump sum. You depreciate your vehicle over its effective life (8 years for cars) and claim the work-use percentage each year.
Is my car loan interest deductible?
Yes, the work-use percentage of car loan interest is deductible if you use the logbook method.
I drive for Uber Eats AND UberX โ can I combine them?
Yes, both count as rideshare/delivery work. Combine the kilometres in your logbook.
How long do I need to keep records?
Five years from the date you lodge your tax return.