If you deliver food or parcels for a living in Australia, your tax return looks nothing like an office worker’s. You might be an employee courier in a company van, a gig driver running three apps from your own car, or a rider on an e-bike. Each version has different deductions, different traps, and — for gig drivers — nobody withholding tax on your behalf. This guide works through all three, with real 2026-27 figures and worked examples, so you claim everything you’re entitled to and nothing that will bounce back at audit.
Quick answer: what delivery drivers can claim in 2026-27
At a glance, the big-ticket deductions are: car expenses (91 cents per kilometre up to 5,000 km, or the logbook method for high-kilometre drivers), platform fees and commissions, the work-related share of your phone and data, delivery gear (bags, mounts, hi-vis, safety boots), tolls and parking on work trips, accounting fees, and — for gig drivers — personal super contributions. What you generally cannot claim: your driver’s licence, lunch during a normal shift, fines, and the trip from home to your regular depot. The rest of this article shows the maths behind each one.
First, which kind of delivery driver are you?
This matters more than any single deduction, because employee couriers and gig drivers live under different tax rules:
| Employee courier | Gig driver (sole trader) | |
|---|---|---|
| How you’re paid | Wages, tax withheld by employer | Platform payouts, no tax withheld |
| ABN needed? | No | Yes — platforms require one |
| Vehicle | Often employer-provided (then you can’t claim its running costs) | Your own car, bike or scooter |
| Allowances | Car or travel allowance, declared as income | None — you claim actual deductions |
| GST | Not your problem | Register only if turnover hits $75,000 — unless you also do rideshare (see below) |
| Super | Employer pays super guarantee | Nothing automatic — but you can claim personal contributions |
If you use your own car as an employee — say, delivering between depots and customers — you claim car expenses the same way a gig driver does. If your employer provides the vehicle, you can’t claim fuel, rego or servicing for it, but you can still claim your phone, gear, tolls and other items you paid for yourself.
Car expenses: 91 cents per kilometre, or the logbook method
For 2026-27 the ATO cents-per-kilometre rate is 91 cents per kilometre, up from 88 cents. The rate is a base of 89 cents plus a temporary one-off 2-cent uplift for 2026-27 only. It covers everything about running the car — fuel, registration, insurance, servicing, repairs and depreciation — so you can’t claim any of those on top of it. Two limits apply: a maximum of 5,000 business kilometres per car per year, which caps the claim at $4,550, and you must be able to show how you worked out your business kilometres (a diary, roster or delivery history will do; no formal logbook is required for this method). Tolls and parking incurred on work trips sit outside the rate and can be claimed on top.
The logbook method has no kilometre cap. You keep a logbook for 12 continuous weeks recording every trip — business and private, with odometer readings — and the resulting business-use percentage applies to all your actual car costs for the year. The logbook stays valid for five years as long as your driving pattern doesn’t change much. You also need receipts for fuel, rego, insurance, servicing and depreciation (depreciation is capped by the 2026-27 car limit of $69,883).
The choice is a maths question, not a preference. As a rule of thumb: under about 5,000 business kilometres a year, cents per kilometre is simpler and usually wins. Well above that, the logbook almost always wins — and for a full-time driver the difference runs into thousands. The worked examples below prove it both ways.
Step by step: working out your car claim
- Count your business kilometres. Delivery trips only — not the drive from home to your first pickup zone if that’s your regular starting point, and not private trips. App trip histories and odometer notes are your evidence.
- Pick your method. At or under 5,000 business km, multiply by $0.91. Over that, run both methods and take the bigger number.
- Add work tolls and parking. These sit outside the cents-per-kilometre rate.
- If you’re an employee with an allowance, declare the allowance as income, then claim your full deduction — if the deduction is bigger than the allowance, the difference is extra tax back.
Worked example 1: Maya, part-time gig driver (cents per kilometre wins)
Maya delivers for Uber Eats and DoorDash around Brisbane in her own hatchback, alongside a part-time retail job. For 2026-27 her delivery income is $52,000 and she drove 4,800 business kilometres.
- Car: 4,800 km × $0.91 = $4,368
- Phone: $90/month plan × 80% work use × 12 = $864
- Platform service fees deducted from her payouts: $1,240
- Gear: insulated bags $120, phone mount $45, hi-vis vest $45 = $210
- Total deductions: $6,682
Her taxable income drops from $52,000 to $45,318. Tax on $52,000 would be $6,120 plus $1,040 Medicare levy ($7,160). On $45,318 it’s $4,115 tax plus $906 Medicare ($5,021). Her deductions save her $2,139. Note the platform-fee point: her $52,000 is gross income before the $1,240 in fees — the fees are a deduction, not a reduction in income. Drivers who report only the net payout under-declare both sides and invite a data-matching letter.
Worked example 2: Dan, full-time courier (logbook wins by thousands)
Dan drives a van full-time for a courier contractor, 28,000 business kilometres out of 34,000 total — an 82% business-use percentage from his 12-week logbook. His actual running costs for the year are $11,900 (fuel $5,200, registration $910, insurance $1,420, servicing $1,850, tyres $780, depreciation $1,740).
- Logbook method: 82% × $11,900 = $9,758
- Cents per kilometre: capped at 5,000 km × $0.91 = $4,550
- Logbook advantage: $5,208 — worth $1,562 at a 30% marginal rate
Dan’s lesson is the one most guides skip: the cents-per-kilometre cap is a ceiling that punishes high-kilometre drivers. If you drive more than about 6,000 business kilometres a year, run the logbook comparison before you lodge — the 12 weeks of record-keeping pays for itself many times over.
Worked example 3: Sarah, employee courier with an allowance
Sarah is employed by a courier company, uses her own car for depot-to-customer runs, and receives a $3,600 car allowance. She drove 6,200 work kilometres. She declares the $3,600 as income, then claims the cents-per-kilometre maximum of $4,550 — a $950 net extra deduction above the allowance. The trip from home to the depot isn’t claimable; the depot-to-customer legs are. And because her employer doesn’t reimburse her phone or hi-vis vest, she claims the work-related share of those too.
Everything else you can claim
Platform fees and commissions. Service fees, commissions and subscription fees charged by Uber Eats, DoorDash, Menulog or Amazon Flex are deductible — they’re the cost of earning the income. Keep the platform payment summaries; they also prove your gross income.
Phone and internet. Claim the work-related percentage of your plan and handset costs. The apps run on data, so a high work percentage is defensible for gig drivers — but it must be a genuine apportionment. A $90 plan at 80% work use is $864 a year; at 100% with no private use, expect questions.
Delivery gear. Insulated bags, backpacks, phone mounts, chargers, dashcams, hi-vis vests, safety boots and sun protection are all claimable if you paid for them and they relate to deliveries. Ordinary clothing is not — a plain black jacket isn’t protective clothing, even if you only wear it on shift.
Insurance and accounting. Income protection insurance, public liability cover for your delivery work, and your tax agent’s fee are deductible. Your agent’s fee for preparing the return is claimed in the following year.
Home office for admin. Gig drivers doing their books, invoicing and tax admin from home can claim the fixed-rate method for those hours (70 cents per hour for 2026-27 as a working figure, consistent with the ATO’s fixed-rate method). A few admin hours a week adds up to a few hundred dollars — don’t skip it, but don’t claim your whole rent either.
Personal super contributions. Gig drivers get no employer super. Contributions you make yourself are tax-deductible if you give your fund a valid notice of intent to claim and the fund acknowledges it before you lodge. It’s the single most overlooked deduction in gig work — and it builds your retirement balance at the same time.
Bikes, e-bikes and scooters. There is no cents-per-kilometre rate for bikes. Claim actual costs instead: the bike or e-bike itself (depreciated if over $300), battery replacement, tyres, servicing, lights, locks and delivery bags. Keep receipts and a reasonable estimate of business use.
GST, ABN and the rideshare trap
Every gig driver needs an ABN — the platforms require it, and you’re a sole trader for tax purposes. GST is where drivers get caught. Food and parcel delivery only: you register for GST once your GST turnover reaches $75,000 (counting all your business income, not just one app), and you must register within 21 days of becoming required. Rideshare is different: carrying passengers is treated as taxi travel, so you must be registered for GST before your first passenger trip, whatever you earn. The trap: if you drive UberX on weekends and deliver Uber Eats on weekdays under the same ABN, the rideshare rule drags your delivery income into GST as well — GST applies to everything under that ABN, and you’ll lodge BAS statements for it all. Drivers who add a few passenger shifts without realising this cop a backdated GST bill. If you only deliver, you almost certainly stay under $75,000 and GST never enters the picture.
Two more compliance facts. First, platforms report your earnings to the ATO under the sharing economy reporting regime (delivery platforms since 1 July 2024) — so declare everything, including tips paid through the app, bonuses and referral fees; cash tips are assessable too. Second, no tax is withheld from gig payouts, so set money aside as you earn — 15 to 20% of delivery income if it’s your only income, more if you also have a taxed job — and expect PAYG instalments once your first return shows a bill.
Common mistakes that cost delivery drivers
- Claiming 100% of car costs with no logbook. Unless the vehicle is genuinely never used privately, the ATO won’t accept it. Without a logbook you’re capped at the cents-per-kilometre method.
- Claiming lunch on shift. Meals during a normal working day aren’t deductible. The exception is overnight travel away from home for work — a different situation from a dinner rush.
- Claiming your driver’s licence. Obtaining or renewing a standard licence is a private expense, even when the job requires it.
- Claiming home-to-depot travel. Ordinary travel between home and a regular workplace is private, even for shift workers and even if you live far away.
- Double-claiming on top of cents per kilometre. Fuel, rego, insurance and depreciation are already inside the 91-cent rate. Only tolls, parking and non-car items sit outside it.
- Forgetting the other side of the ledger. Tips, bonuses and surge payments are income. So is the full gross payout before platform fees — not the net amount that lands in your bank.
- Ignoring the $1,000 standard deduction. For 2026-27, drivers whose itemised work deductions total under $1,000 may be better off with the standard deduction instead — but you can’t claim both. Run the comparison if your claims are small (for example, a bike rider with no car costs).
Record-keeping checklist
Keep these for five years: platform payment summaries and payout statements, fuel and servicing receipts (logbook method), your logbook if you use one, phone bills with your work-use calculation noted, gear receipts, toll and parking records, and your super fund’s notice-of-intent acknowledgement. The ATO’s myDeductions app in the ATO app will run a logbook and store receipts — it’s free and it beats a glovebox full of faded dockets.
Frequently asked questions
Do I need an ABN to deliver for Uber Eats or DoorDash?
Yes. The platforms treat you as an independent contractor and require an ABN before you can be paid. You’re a sole trader for tax purposes, which is why no tax is withheld and why you claim deductions directly.
Can I claim my driver’s licence or vehicle registration renewal course?
No. A standard licence is a private expense even if your job depends on it. Registration is different: it’s part of your car costs, claimable under the logbook method or already inside the cents-per-kilometre rate.
Can I claim meals while I’m out delivering?
Not for an ordinary shift. Meal deductions apply when you’re travelling away from home overnight for work — not for lunch between drops.
Can I switch between cents per kilometre and the logbook method?
Yes — you choose the method each income year, and you can use whichever gives the bigger deduction. A logbook stays valid for five years if your driving pattern doesn’t change significantly, so you don’t need a fresh 12 weeks every year.
Do I have to declare tips and bonuses?
Yes — all of it. Base fees, surge pricing, tips through the app, bonuses and referral payments are assessable income, and platforms report payouts to the ATO. Cash tips are assessable too.
I drive UberX as well as Uber Eats. Does GST apply to my delivery income?
Yes. Because rideshare requires GST registration from the first dollar, and registration covers your whole ABN, GST applies to your delivery income as well. You’ll report it all on your BAS and can claim GST credits on your delivery expenses to offset it.
The bottom line
For most delivery drivers, the car claim is the whole game: 91 cents a kilometre up to $4,550 for part-timers, and a logbook claim potentially twice that for full-timers. Around it, stack your platform fees, phone share, gear, tolls and — if you’re a gig driver — personal super contributions. Declare everything the platforms pay you, set tax money aside as you earn, and check the rideshare GST trap before you accept a single passenger trip. Done that way, a delivery driver’s tax return stops being a guessing game and starts being money back in your pocket.
Want to check what your total tax looks like once these deductions land? Run the numbers on the income tax calculator. If delivery is a side hustle alongside a main job, the side hustle tax guide covers the second-job withholding trap in detail, and the car expenses guide goes deeper on logbook rules. The $1,000 standard deduction guide helps low-claim drivers compare, the GST guide covers registration mechanics, and the myTax lodgement guide walks through the return itself.
Sources: ATO — Cents per kilometre method; ATO — Trips you can and can’t claim.
