Thinking of chucking on the app to do some full-time or part-time driving for Uber, DoorDash, Menulog, or DiDi? Welcome to the gig worker family!
Heaps of folks think, “I’ll just sign up on the app and hit the road… quick cash, too easy!”
Taking action is bloody brilliant, but skipping the official paperwork is a massive mistake. Why?
Because every dollar you make through the app is assessable income. If you don’t track your deductions, you’re just handing your hard-earned cash straight to the taxman. You do the hard yakka driving all day, only to end up with peanuts.
No ABN = Paying Way Too Much Tax!
In Australia, the ATO treats you as a sole trader running a business. To operate legally and claim your business expenses, you need to register for an ABN (Australian Business Number). The good news? Applying for an ABN is 100% free!
Note: If you are driving passengers (rideshare), the ATO also legally requires you to register for GST from the very first dollar you earn—no exceptions!
Once you’re set up, you can deduct a heap of business expenses from your income. What can gig workers claim?
– Fuel & Tolls (while you’re on the clock)
– Car Depreciation (You might even be eligible for the Instant Asset Write-Off!)
– A percentage of your mobile phone and data bill
– Rego, car insurance, servicing, and new tyres
– Water and mints for your passengers
– Dashcams, phone mounts, and car wash receipts
See how much money you’re throwing down the drain if you don’t claim these?
The Catch: You Gotta Keep Your Receipts (and a Logbook)
Fair dinkum, there is a catch. The ATO requires you to keep your tax records and receipts for 5 years.
On top of that, to claim car expenses, you generally need to keep a continuous 12-week logbook to prove your business-use percentage, or you can use the simpler “cents per kilometre” method (which lets you claim 88c per km up to a maximum of 5,000 km).
Yeah, nah… some people say, “That sounds like a lot of admin, mate. I can’t be bothered.”
But if you actually crunch the numbers on how much you spend running your car, you are missing out on thousands of dollars in tax returns!
The Solution: Don’t Let the Admin Stop You
I know keeping receipts is a pain. I used to do delivery driving myself, and when I actually calculated my income versus the petrol and wear-and-tear, I realised I was getting ripped off.
That is exactly why I designed Gig Log App. It’s a dead-simple, offline-first app that helps you log your trips, store receipts, and track your income. Because it doesn’t use live GPS tracking, it won’t absolutely nuke your phone battery, and your data stays private.
You just log your details, and with one click, the app generates a proper Profit & Loss statement. When tax time rolls around, just copy the numbers into your ATO tax return or hand it straight to your accountant. Too easy!
The Reality Check: The ATO Knows What You Earn
Some blokes still reckon, “Ah, it’s just a side hustle, the ATO won’t know.”
Wrong! The ATO does massive data-matching with platforms like Uber and DoorDash. They already know exactly how much you’ve been paid.
If you don’t report your income and that audit letter arrives in the mail, you’re gonna have a bad time. The country needs its tax dollars, so we all have to pay our fair share. But there is absolutely no reason you should pay tax on money you spent running your business.
Whether you’re driving full-time or just a few hours on the weekend, do yourself a favour: go get your ABN sorted. It’s free, it’s easy, and it’ll save you a fortune at tax time. No worries!