Tax for Gig economy workers

Australian gig workers on platforms like Uber, DoorDash, and Airtasker are classified as independent contractors and must hold an ABN, declare all platform income, and lodge an annual tax return. Rideshare drivers must register for GST from the first dollar of turnover (no $75,000 threshold). Since 1 July 2024, all major platform categories report seller transaction data to the ATO under the Sharing Economy Reporting Regime, making undeclared gig income a high-risk target.

Last reviewed: 27 May 2026

Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact ATO. Read our editorial scope →

Most gig workers in Australia are treated as self-employed sole traders, not employees of the platform. That means no PAYG withholding, no employer super contributions, and full personal responsibility for income tax, GST (where applicable), BAS lodgement, and record-keeping. The critical split is between rideshare (GST from the first dollar, no threshold) and everything else ($75,000 GST turnover threshold). Since 1 July 2023 for rideshare and accommodation, and 1 July 2024 for all other platform categories, the Sharing Economy Reporting Regime requires platforms to report detailed seller data to the ATO twice yearly.

The reality this serves

Australians earning income through digital platforms: Uber, Ola, DoorDash, Uber Eats, Menulog, Airtasker, Upwork, Freelancer, Airbnb, and similar. Classified as independent contractors (not employees) for tax purposes. Responsible for their own ABN, income tax, GST (compulsory from the first dollar for rideshare), BAS lodgement, and superannuation. The Sharing Economy Reporting Regime means platforms now report transaction-level data to the ATO, making undeclared gig income a target.

Contractor classification: not employees of the platform

The ATO's default position is that people using digital platforms to offer rides, deliveries, tasks, or freelance services are running their own business as sole traders. Uber and Ola drivers, DoorDash and Menulog riders, Airtasker taskers, and Upwork freelancers are all treated as independent contractors responsible for their own income tax, GST, super, and record-keeping. The platform is a client or marketplace, not an employer. This means no PAYG withholding on platform payments, no employer super contributions, no payslips, and no access to employee entitlements like leave or workers compensation through the platform. If a gig worker is genuinely an employee (payslips, PAYG withholding, super contributions from the platform), the employment rules apply instead, but this is uncommon for the major platform categories.

GST: rideshare from dollar one, everything else at $75,000

Ride-sourcing (Uber, Ola, and similar) is classified as 'taxi travel' and the $75,000 GST registration threshold is specifically disapplied. Rideshare drivers must register for GST from their first fare, charge GST on every trip (usually embedded in the app fare), lodge quarterly BAS, and can claim GST credits on business expenses. If a driver does any rideshare work, their GST registration applies to all activities under the same ABN (including delivery or Airtasker work). For all other gig categories (food delivery, task-based, freelance, accommodation, car sharing), the standard $75,000 turnover threshold applies. Below that, registration is voluntary but allows claiming GST credits on inputs. Short-term commercial accommodation (Airbnb) is generally a taxable supply when GST-registered, but long-term residential rent is input-taxed (no GST charged, no credits).

Ride-sourcing is treated as taxi travel. The $75,000 GST registration threshold does not apply. Registration is compulsory from the first dollar. (A New Tax System (Goods and Services Tax) Act 1999 s 144-5)

Implemented through Treasury Laws Amendment (2022 Measures No. 2) Act, the SERR requires electronic distribution platforms to report detailed seller data to the ATO. From 1 July 2023, platforms facilitating taxi travel, ride-sourcing, and short-term accommodation began reporting. From 1 July 2024, the regime expanded to food delivery, asset hire (car sharing), task-based, and freelance services. Reports are filed twice yearly and include seller name, address, date of birth, ABN, bank details, number of transactions, gross and net payouts, and GST on payments. Platforms including Uber, DoorDash, Airtasker, Upwork, and Airbnb now provide the ATO with granular income data for every seller. Omitting gig income from your tax return when the platform has already reported it to the ATO triggers reviews, amended assessments, and possible penalties.

Electronic distribution platforms must report seller transaction data to the ATO twice yearly, covering identity, ABN, transaction volumes, and gross payouts. (Treasury Laws Amendment (2022 Measures No. 2) Act; TAA 1953 Schedule 1, Subdivision 396-B)

Quarterly BAS and PAYG instalments

Gig workers registered for GST must lodge quarterly BAS reporting GST collected and claiming GST credits. Even without GST registration, if a gig worker's prior-year tax assessment shows a sufficient tax liability from business income, the ATO may automatically enter them into the PAYG instalments system. Quarterly instalments are based on prior-year business income, with the option to vary if current-year income is lower. Tax professionals recommend gig workers set aside 25% to 30% of each gig payment in a separate account to cover income tax, Medicare levy, and (where applicable) GST payments. No tax is withheld from platform payments, so the entire obligation lands on the worker at lodgement or through instalments.

Allowable expenses in context

Gig workers claim deductions for expenses directly related to earning platform income. The business-use percentage is critical where costs are shared between personal and business use. Motor vehicle: fuel, servicing, repairs, tyres, insurance, registration, loan interest or lease payments, depreciation, parking, and tolls. Limited to the business-use percentage established by either the logbook method (12-week logbook) or cents-per-kilometre (88 cents per km, capped at 5,000 business km for 2025-26). Rideshare and delivery drivers with high business use should use the logbook method. Phone, data, and internet: deductible to the extent used for navigation, platform apps, client communication, and admin. Apportion based on reasonable estimates or usage records. Equipment and consumables: delivery bags, thermal bags, bike accessories, tools, PPE, small equipment, stationery. Fully deductible where used exclusively for business; apportioned where mixed. Platform fees and commissions: commissions retained by Uber, DoorDash, Airtasker, Upwork are fully deductible business expenses. Home office and admin: reasonable portion of home running costs for time spent on record-keeping, invoicing, and booking management. NOT deductible: fines (speeding, parking, traffic), private portion of phone or vehicle costs, personal clothing, meals not required by the work, personal commuting from home to a regular work location.

Worked example

Declan Murphy — Melbourne, VIC

Uber rideshare driver (part-time sole trader) (FY 2025-26)

Declan drives for Uber 20 hours per week alongside part-time study. Gross fares (including GST) for 2025-26 total $30,000. Uber retains 27.5% commission ($8,250). Vehicle expenses total $9,000 for the year at 80% business use. He has no other employment income. He is GST-registered (compulsory for rideshare from the first dollar).

GST: collected on fares $30,000 x 1/11 = $2,727. GST credits on vehicle expenses (business share): approximately $654. GST on Uber commission ($8,250 / 11): approximately $750. Net GST payable: approximately $1,323 per year. Income: gross fares $30,000 minus GST-exclusive Uber commission $7,500 minus vehicle costs 80% of $9,000 = $7,200. Total deductions $14,700. Net business profit approximately $12,573. Taxable income $12,573, below $18,200 tax-free threshold, so nil income tax. But GST of $1,323 is still payable quarterly via BAS, approximately $331 per quarter.

Support schemes

ABN registration (free)

Eligibility: Any individual carrying on an enterprise in Australia. No age limit, no minimum turnover. The activity must be genuinely business-like (not casual employment disguised as contracting).

Personal deductible super contributions

Eligibility: Any individual under age 75 (or meeting the work test for those 67 to 74 in specific circumstances). Gig workers as sole traders can contribute and claim a deduction.

Cents-per-kilometre method for vehicle expenses

Eligibility: Any sole trader or employee using a car for business purposes. Capped at 5,000 business kilometres per year. No requirement to keep a logbook, but you must be able to demonstrate how you calculated the business kilometres.

Frequently asked questions

Do I need to register for GST if I only do food delivery (not rideshare)?+

Only if your total GST turnover from all ABN activities reaches or is projected to reach $75,000 in a 12-month period. Most part-time food delivery workers will be under this threshold. However, if you do any rideshare work (even one Uber trip), you must register for GST from the first dollar, and that registration applies to all your ABN activities including delivery. Below the $75,000 threshold, voluntary GST registration lets you claim input tax credits on business purchases but requires charging GST and lodging quarterly BAS.

What is the Sharing Economy Reporting Regime and does it affect me?+

Yes. Since 1 July 2024, all major platform categories (rideshare, delivery, task-based, freelance, accommodation, asset hire) are covered. Platforms report your name, address, date of birth, ABN, bank details, transaction count, and gross payouts to the ATO twice yearly. This means the ATO already knows how much each platform paid you. If you omit gig income from your tax return, automated will flag the discrepancy. The regime does not change what you owe; it changes the likelihood of getting caught if you underdeclare.

Do platforms like Uber or Airtasker pay super for me?+

No. Because gig workers are classified as independent contractors (not employees), platforms do not pay Superannuation Guarantee on your behalf. You are entirely responsible for your own retirement savings. You can make personal deductible contributions to your super fund (capped at $30,000 concessional for 2025-26), which reduce your taxable income. At a 30% marginal rate, a $5,000 deductible contribution saves $1,500 in income tax while costing $750 in 15% super fund tax. Without deliberate action, gig work years contribute nothing to super.

How do I handle tax if I have a salary job and do gig work on the side?+

Your employer withholds PAYG tax from your salary, but no tax is withheld from gig income. At year end, your total taxable income (salary plus net gig profit) determines your overall tax liability. The gig profit is added on top of your salary and taxed at the marginal rate that applies to the combined total. If the gap between PAYG withheld and total tax owed is large enough, the ATO will enter you into the PAYG instalments system for the following year. Set aside 25% to 30% of gig earnings in a separate account to avoid a year-end surprise, or ask your employer to increase PAYG withholding from your salary to cover the expected shortfall.