In 2026, the Australian tax system is incredibly efficient. But for new Uber drivers, the rules around Goods and Services Tax (GST) are the single largest cause of confusion. Unlike a freelance designer who only needs to register for GST once they earn $75,000, the ATO views rideshare as a "Taxi-like service."
This means if you drive Uber, you are an "enterprise" in the eyes of the law, and you must manage your GST from your very first fare. Here is how the rules stand in 2026.
Even if you only plan to drive for 5 hours a week and earn $5,000 a year, you must register for an ABN and GST. If you don't, Uber will eventually be required to withhold tax from your payments, and the ATO will charge you back-dated penalties.
💡 Note: If you are already registered for GST for another business (e.g., as a freelance architect), your Uber income will simply be added to that existing GST registration. You do not need a second ABN.
Your Uber fares already include GST. If the passenger pays $22 for a ride, $2 of that is GST. You are essentially collecting that $2 on behalf of the ATO. Every quarter, you must report your total fares and pay that GST to the government. This is why having a separate tax savings account is critical for rideshare partners in 2026.
This is where GST works in your favor. Every business expense you have usually includes GST. By reporting these on your Business Activity Statement (BAS), you reduce the amount of GST you owe the ATO.
In 2026, most rideshare drivers use Simplified GST Accounting. This allows you to report your total sales and total purchases without having to list every single receipt. However, you must still keep those receipts for 5 years in case of an audit. Using an app that integrates with Xero (like MileIQ) makes this process automated and audit-proof.
Our accountants help rideshare partners automate their GST reporting and ensure they're always claiming every possible credit. Focus on the road, while we handle the ATO.
Talk to a Rideshare GST Specialist