In 2026, the rideshare economy in Australia is more competitive than ever. But while your app balance might look healthy, that isn't your true profit. Between fuel, insurance, and the dreaded "car depreciation," many drivers are actually earning less than minimum wage because they aren't managing their tax correctly.
Navigating the ATO rules for Uber is critical for your survival as a rideshare partner. This guide outlines the essential deductions available to Australian drivers in 2026.
The single biggest mistake drivers make is not keeping a valid 12-week logbook. Without one, you can only claim based on the "Cents per Kilometre" method, which is capped at 5,000km per year. For a professional Uber driver, you'll likely hit that 5,000km limit in the first few weeks.
While the rules for general businesses have shifted, the Instant Asset Write-Off remains a nuanced area for rideshare. If you buy a car specifically for Uber in 2026, you may be able to write off a significant portion of the cost immediately, but it is strictly capped by the "Car Limit" (approximately $69k for the 2025-26 year). If the car is used for private trips (like the school run), you must apportion the claim.
Beyond the car, there are dozens of smaller items you can claim in 2026:
💡 Note: You cannot claim the cost of your drivers license, even if it's a special 'Passenger Vehicle' endorsement. The ATO views this as a 'private' cost required to earn income.
Since you can't drive Uber without a smartphone and data, you can claim a percentage of your monthly plan. Most professional drivers claim between 40% and 70% of their phone bill, but you must be able to justify this with a diary showing your business vs private usage over a four-week period.
Our accountants specialized in the Gig Economy help Uber and DiDi drivers maximize their logbook claims and manage their quarterly BAS. stop the tax leaks today.
Talk to a Rideshare Tax Specialist