If you deliver food with Uber Eats or any delivery platform like DoorDash or Menulog, you’re running a small business in the eyes of the ATO. That means you can — and should — claim tax deductions for the expenses you incur while earning your delivery income. In today’s article, we’ll break down how Uber Eats drivers’ tax deductions work — giving you a complete understanding of what you can claim and how to maximise your return.
You may miss legitimate deductions simply because you don’t track them properly. Here’s a complete guide to help you legally maximise your deductions and pay only what you owe.
1. Understand How Uber Eats Drivers Tax Deductions Work
As a delivery driver, you can claim any expense that is directly related to earning your income, and not private or personal. You must be able to show that you spent the money yourself, the expense is connected to your delivery work, and you have a record (receipt, logbook, or statement).
2. Vehicle Expenses — Your Biggest Deduction
You can claim the cost of using your car, motorbike, or e-bike for deliveries in two ways:
Option 1: Cents Per Kilometre Method
– Claim 85¢ per km for up to 5,000 km per year.
– No receipts required, but you must have a reasonable estimate (like Uber trip logs).
– Simple, but limited in claim size.
Example: Claiming Car Expenses with the Cents Per Kilometre Method
Peter delivers food part-time through Uber Eats in Adelaide. He tracks his delivery trips using Uber’s weekly summaries and estimates he drove 4,200 km for work during the financial year.
Claim Calculation:
- Method: Cents Per Kilometre
- Rate: $0.85 per km
- Distance: 4,200 km
Total Claim:
4,200 km×$0.85=$3,5704,200
Key Notes:
- No need to keep fuel or maintenance receipts.
- Must keep a reasonable estimate — Uber trip logs, delivery app summaries, or a simple spreadsheet.
- Maximum claimable distance is 5,000 km per year — even if you drove more.
This method is ideal for simplicity, especially if you don’t want to track every car-related expense. If you drive more than 5,000 km or have high running costs, the Logbook Method might give a bigger deduction.
Option 2: Logbook Method (Recommended)
Keep a 12-week logbook of business vs total kilometres. Apply your business-use percentage to actual car costs like fuel, registration, insurance, repairs, and depreciation or loan interest. This method usually gives a much bigger deduction for frequent drivers.
3. Other Common Uber Eats Drivers Tax Deductions
| Category | Examples | Notes |
| Phone & Internet | Mobile plan, data, internet for GPS/Uber app | Claim business-use % (e.g., 70%) |
| Delivery Equipment | Insulated bag, phone holder, helmet, safety vest | Fully deductible if used only for work |
| Uber Fees | Service & booking fees, tolls paid while delivering | Deduct 100% |
| Vehicle Costs | Fuel, rego, insurance, car wash, servicing | Apply logbook % |
| Accounting & Admin | Tax agent, accounting software (Xero, MYOB), bank fees | Fully deductible |
| Depreciation | Car, e-bike, phone, laptop | Claim over time or instant asset write-off (under $20,000) |
4. Example Deduction Calculation
Sarah delivers food part-time through Uber Eats in Adelaide. She keeps a 12-week logbook showing that 65% of her driving is for business. She owns a second-hand car and wants to maximise her tax deductions.
- Total km driven in 12 weeks: 3,000 km
- Business km (Uber deliveries): 1,950 km
- Business-use %: 1,950/3,000=65%
Sarah can now apply this 65% to all eligible car expenses.
Step 2: Actual Car Costs (Annual)
| Expense Type | Total Cost | Business % | Deductible Amount |
| Fuel | $2,200 | 65% | $1,430 |
| Registration | $1,000 | 65% | $650 |
| Insurance | $1,200 | 65% | $780 |
| Servicing & Repairs | $800 | 65% | $520 |
| Car Washes | $200 | 65% | $130 |
| Depreciation (car value $18,000, Year 1 – 8 years effective life) | $2,250 | 65% | $1,462.50 |
Total Vehicle Deduction: $4,972.50
Step 3: Other Common Uber Eats Drivers Tax Deductions
| Category | Example Items | Claim Basis | Deductible Amount |
| Phone & Internet | Mobile plan, data for Uber app | 70% business use | $840 × 70% = $588 |
| Delivery Equipment | Insulated bag, phone holder, vest | 100% work use | $150 |
| Uber Fees | Service fees, tolls | 100% deductible | $2,400 |
| Accounting & Admin | Tax agent, Xero subscription | 100% deductible | $300 |
| Depreciation | Phone (value $1,000) | 70% business use | $1,000 × 70% = $700 |
Total Other Deductions: $4,138
| Category | Amount |
| Vehicle Costs | $4,972.50 |
| Other Deductions | $4,138 |
| Total Claim | $9,110.50 |
- The Logbook Method gives bigger deductions if you drive frequently.
- You must keep a 12-week logbook and retain receipts for actual costs.
- You can claim depreciation on second-hand cars, phones, and laptops.
- Don’t forget Uber service fees, delivery gear, and phone/internet costs.
5. Record-Keeping Tips to Maximise Your Deductions
- Keep every receipt — even small ones (fuel, car wash, accessories).
- Take photos of receipts — digital copies are valid for ATO.
- Keep odometer readings at the start and end of each year.
- Separate your bank account for Uber income and expenses.
- Review your deductions every quarter — don’t wait till tax time.
- Store records for at least 5 years in case of ATO review.
6. Pro Tip — Keep an Ongoing Log
If you track your kilometres and expenses weekly, you’ll never lose out. Record delivery kilometres, expenses paid, business vs private trips, and Uber statements. Consistency is the key to maximising your claim.
Final Thoughts
Running an Uber Eats business is more than just deliveries — it’s about managing your income smartly. With good records and the right claiming method, you can legally save an amount in tax every year.
DISCLAIMER: The information provided in this guide is general in nature only and does not constitute personal financial, taxation, or legal advice. It has been prepared without taking into account your individual objectives, financial situation, or needs. Before acting on any information, you should consider the appropriateness of the information to your own circumstances and seek advice from a qualified financial adviser, tax agent, or legal professional.
