Why do rideshare and food delivery drivers need GST from the first dollar?

You signed up to drive a few nights a week to cover the bills. Then a mate mentioned GST, and now you're wondering if you've been doing it wrong since the first trip.

It's a fair worry, because the rules for passengers and the rules for food are different, and the apps look almost the same from the driver's seat. Here's where the line sits and what to do about it.

Passengers in the car: GST from day one

The ATO's rule is simple. If you provide taxi, limousine or rideshare travel for passengers, you must be registered for GST regardless of your turnover, from the day you start. Rideshare drivers also need an ABN. The only exception the ATO names is if you're an employee.

That means there's no $75,000 free zone for rideshare. Your first $20 fare is a GST sale.

Food or parcels in the car: the normal test

Delivering food or parcels isn't passenger travel, so it falls under the usual rule. You must register once your GST turnover reaches $75,000 over the last 12 months, or is likely to over the next 12. Below that, registering is your choice.

What counts as income from the apps

For income tax, the ATO says fares, tips and bonuses you get through the platform are all assessable income. It's easy to forget the extras, so pull the full annual or quarterly summary from each app rather than adding up your bank deposits.

• Fares from passengers.
• Tips from passengers through the app.
• Bonuses paid by the platform.

Your profit, which is what income tax is worked out on, is that income minus the business share of your expenses. GST is a separate tax with its own form, the BAS, and it's worked out quarter by quarter.

If you do both

This is where people get caught. GST registration belongs to you as a business, not to one app. Once you're registered because of rideshare, your other taxable business income counts on your BAS as well, including delivery work.

So a driver who does rideshare on Friday nights and food delivery at lunchtime reports both on the same quarterly BAS.

How the GST adds up

GST is 10%, so the GST inside a GST-inclusive fare is one eleventh of it. You also get GST credits for the business share of costs that include GST, like fuel, servicing, tolls and your phone. Only the business portion counts, so you need a fair way to split business and private use.

Worked example

Ali's year of rideshare

Example only. Ali drives rideshare part time in Brisbane. Over the year his fares total $20,000 including GST. The business share of his fuel, servicing, tolls and phone comes to $5,500 including GST, all from GST-registered suppliers. His mate Sione does only food delivery and also earns $20,000.

The sums, step by step (Australian dollars)

Step	Sum	Result
GST in Ali's fares	$20,000 / 11	about $1,818
GST credits on business costs	$5,500 / 11	$500
Net GST for the year	$1,818 minus $500	about $1,318
Roughly each quarter	$1,318 / 4	about $330
Sione's GST	Delivery only, under $75,000, not registered	$0

Ali owes about $1,318 in GST for the year, around $330 a quarter, while Sione earns the same from delivery and doesn't need to register.

Real quarters vary with how much Ali drives. If Sione ever adds rideshare, he'll need to register, and his delivery income will then go on his BAS too.

On the income tax side, you can only claim the business portion of each expense, and you claim it without the GST you've already claimed back. The ATO expects you to show how you worked out the business and private split.

What to do if you're behind

1. Get an ABN if you don't have one.
2. Register for GST, and check with the ATO or a registered tax agent what date your registration should start from.
3. Pull your trip summaries from the app for each quarter.
4. Lodge the BAS for each quarter you've missed. Contact the ATO if you can't pay it all at once.

Fixing it yourself is far better than waiting for a letter, and the ATO warns that penalties and interest may apply if you don't register. If you've been driving for a while without registering, a registered tax agent can help sort out the back quarters.

Your BAS as a driver

• G1: your total fares and other business sales for the quarter, usually including GST.
• 1A: the GST in your taxable sales, one eleventh of the GST-inclusive total.
• 1B: the GST credits on the business share of your costs.
• Due dates: 28 October, 28 February, 28 April and 28 July for most quarterly lodgers, moved to the next business day if that falls on a weekend or public holiday. If you receive and lodge your BAS online yourself, you may get an extra 2 weeks for every quarter except October to December.

Your situation might include a car you also use privately, other jobs, or a car bought partly for work. These are worth checking with the ATO or a registered tax agent.

Key numbers

The figures this guide uses, Any year

What	Figure and source
Rideshare GST registration	From the day you start, regardless of earnings ATO
Rideshare ABN	Required ATO
Employee exception	Only exception named ATO
Passenger transport rule in GST registration	Regardless of GST turnover ATO
General GST threshold	$75,000 ATO
Ride-sourcing income	Fares, tips and bonuses from the platform are assessable ATO

Free official help

• ATO ride-sourcing
  The ATO's rules for rideshare drivers, including GST from day one.
• ATO income and deductions for ride-sourcing
  What counts as income and how to split your expenses.
• ATO registering for GST
  The $75,000 test and the passenger transport rule.
• ATO what is the SERR?
  What the apps report to the ATO and when.
• ATO due dates for lodging and paying your BAS
  Quarterly BAS dates.

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Sources

1. Ride-sourcing (ATO). https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/sharing-economy-and-tax/ride-sourcing, accessed 2026-10-16.
2. Income and deductions for ride-sourcing (ATO). https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/sharing-economy-and-tax/ride-sourcing/income-and-deductions-for-ride-sourcing, accessed 2026-10-16.
3. Registering for GST (ATO). https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst, accessed 2026-10-16.
4. How GST works (ATO). https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/how-gst-works, accessed 2026-10-16.
5. Tax invoices (ATO). https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices, accessed 2026-10-16.
6. What is the SERR? (ATO). https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/third-party-reporting/sharing-economy-reporting-regime/what-is-the-serr, accessed 2026-10-16.
7. Due dates for lodging and paying your BAS (ATO). https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/business-activity-statements-bas/due-dates-for-lodging-and-paying-your-bas, accessed 2026-10-16.
8. GST reporting methods (ATO). https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/business-activity-statements-bas/goods-and-services-tax-gst/gst-reporting-methods, accessed 2026-10-16.
9. How GST applies when providing services (ATO). https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/sharing-economy-and-tax/providing-services/how-gst-applies-when-providing-services, accessed 2026-10-16.
10. Two week lodgment concession, terms and conditions (ATO). https://www.ato.gov.au/general/online-services/in-detail/two-week-lodgment-concession---terms-and-conditions/?page=1, accessed 2026-10-16.