Key Takeaways
- You can claim a deduction for the work-related portion of your car usage.
- The "Logbook Method" is almost always better for Uber drivers.
- Apportionment is required for personal vs work travel.
- Keep all receipts for fuel, insurance, and maintenance.
The Short Answer
A Big Yes! If you use your personal car for Uber, Ola, or delivery services (like UberEats or DoorDash), you can claim a tax deduction for the "work portion" of your vehicle's running costs. This includes fuel, maintenance, insurance, and interest on car loans.
Option 1: The Cents per Kilometre Method (Simple)
If you only travel a few kilometres for delivery work per week, the "Cents per Kilometre" method is easiest. You can claim up to 5,000 kilometres per financial year (the rate is typically around 85-88 cents in 2026). You don't need detailed receipts for this method, but you must be able to justify how you calculated your work-related kilometres.
Option 2: The Logbook Method (Most Profitable)
For most Uber drivers, the "Logbook Method" results in a much larger tax deduction. You must keep a logbook for a continuous period of 12 weeks to determine the "business percentage" of your car usage. For example, if you drive 10,000 kilometres in 12 weeks and 8,000 of those are for Uber, your business percentage is 80%.
Using the logbook method, you can claim 80% of ALL your car expenses (fuel, registration, insurance, repairs, interest on loans, and depreciation on the car's value).
Keeping the Records
Keep your tax invoices for every single tank of fuel, every service, and all insurance renewals. Most Uber drivers find that using their ride-share app's mileage report in combination with their personal logbook is the best way to satisfy an ATO audit.
Registering for GST
By law, all Uber drivers must be registered for GST from the first dollar they earn, regardless of their total income. This means you must lodge a BAS (Business Activity Statement) every quarter and can claim back the GST you pay on your car expenses.
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