Do Uber drivers pay tax in Australia?

As a driver-partner, you independently provide transportation services. You are not an employee of Uber and will be responsible for reporting and paying any applicable tax or GST earned from your trips with Uber to the Australian Tax Office (ATO). Uber does not withhold or file any tax on your behalf.



Yes, Uber drivers in Australia are classified as independent contractors (sole traders) and are strictly required to pay tax on their earnings in 2026. Because they are not employees, Uber does not withhold tax on their behalf. Drivers must register for an ABN (Australian Business Number) and, crucially, must be registered for GST (Goods and Services Tax) from their very first dollar earned—unlike other small businesses that only register after hitting a $75,000 threshold. This means drivers must lodge a Business Activity Statement (BAS) quarterly and pay 1/11th of their fares to the Australian Taxation Office (ATO). At the end of the financial year, they must declare their total Uber income on their individual tax return, where it is taxed at their marginal rate. To offset this, drivers can claim significant "work-related deductions," including fuel, car maintenance, insurance, and the "Uber Service Fee." In 2026, the ATO utilizes data-matching technology to ensure that all income reported by Uber is accurately reflected in driver tax filings.

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Because you work for yourself, you are responsible for both the “employer” and “employee” portions of the tax. For Tax Year 2022 (returns filed in 2023), the self-employment tax rate is 15.3 percent. Self-employment tax is paid in addition to your regular income tax.

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Arab, the company spokesperson, added that “Uber's median take rate has remained the same” — that is, around 25 percent.

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If you are an Uber driver, you are self-employed, and thus must make estimated tax payments on a quarterly basis. If you work it just right, you won't have to pay any additional tax at year end when you file your 1040, nor will you have a big refund. That's the best situation.

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Uber drivers can make as much money as they want. The amount you make all depends on the hours you choose. For example, 35% of Uber drivers work 12 to 19 hours a week. On top of this, Uber drivers make an average of $19 per hour.

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Earnings are decreasing because Uber and Lyft keep changing the rates - keeping prices the same for passengers, lowering pay for drivers and pocketing the difference. As Uber and Lyft continue to make more, drivers continue to make less.

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Using Schedule C. You will most likely report the income from your 1099s on Schedule C, Profit or Loss from Business. Since Uber reports this income information directly to the IRS, you don't have to include the actual 1099 forms with your tax return. Schedule C can also be used to list your business-related expenses.

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How is Uber income taxed? Uber drivers are considered self-employed or independent contractors, so the Canada Revenue Agency (CRA) requires that they file income tax each year.

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The minimum wages have been revised in Australia, effective 01 July 2023. The national minimum wage is increased from $21.38 to $23.23 per hour and $812.44 to $882.80 per week. Note: This minimum wage increase might not reflect the inflationary trends.

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