Published: 10 April 2026

Deliveroo Driver Tax: Complete Guide for Australian Food Delivery Riders [FY 2025-26]

Working as a Deliveroo driver offers Australians the flexibility to earn money on their own schedule, whether you're looking for a side hustle to supplement your income or seeking full-time gig work. The ability to choose when and where you work makes food delivery an attractive option for students, parents, and anyone wanting to boost their take-home pay. However, the freedom of being a Deliveroo rider comes with specific tax obligations that many new drivers don't fully understand until tax time arrives.

Understanding Deliveroo driver tax is essential for staying compliant with the Australian Taxation Office (ATO) and ensuring you don't pay more tax than necessary. Unlike traditional employees who have tax automatically withheld from their wages, Deliveroo drivers are classified as independent contractors. This means you're essentially operating your own small business, which brings both responsibilities and opportunities. This comprehensive guide will walk you through everything you need to know about Deliveroo driver tax in Australia, from ABN and GST registration to maximising your deductions for the 2025-26 financial year.

What Is Deliveroo Driver Tax?

Deliveroo driver tax refers to the various tax obligations that apply to Australians who earn income by delivering food through the Deliveroo platform. As a Deliveroo rider, you are not an employee of the company—you are an independent contractor running your own delivery business. This distinction is crucial because it affects how you report your income, what deductions you can claim, and your obligations regarding GST and record keeping.

Your Deliveroo earnings are considered assessable business income by the ATO. This means you must declare all payments received from the platform on your annual tax return. Additionally, Deliveroo drivers must register for an Australian Business Number (ABN) and, unlike many other contractors, must also register for Goods and Services Tax (GST) regardless of how much they earn. The ATO has specific requirements for food delivery services that differ from other types of contract work, making it important to understand these rules from day one.

How Deliveroo Driver Tax Works in Australia

When you work as a Deliveroo driver, the tax system treats you as a sole trader. This means there is no employer withholding tax from your payments—Deliveroo pays you the full amount for each delivery, and it is your responsibility to set aside money for your eventual tax bill. Many new drivers are surprised by this arrangement and find themselves facing a significant tax debt if they haven't planned accordingly throughout the year.

Your Deliveroo income is added to any other earnings you receive, such as wages from a regular job, investment income, or other business activities. The combined total determines which tax bracket you fall into and how much tax you owe. In addition to income tax, you'll need to pay the Medicare levy of 2% on your taxable income. If your income exceeds certain thresholds and you don't have private health insurance, you may also be liable for the Medicare Levy Surcharge.

The key difference between Deliveroo driver tax and employee tax is the timing of payments. While employees have tax deducted from each pay packet, contractors must manage their own tax obligations. This includes potentially making quarterly Pay As You Go (PAYG) instalments once your business income reaches a certain level. Understanding this cash flow dynamic is essential for financial planning as a delivery driver.

ABN and GST Registration Requirements

One of the first steps when starting as a Deliveroo driver is registering for an Australian Business Number (ABN). You cannot work on the platform without one, as Deliveroo requires all riders to have a valid ABN. The good news is that applying for an ABN is free and can be done online through the Australian Business Register in about 15 minutes. Once you have your ABN, you'll use it for all your business dealings, including invoicing and tax reporting.

The GST registration requirement for Deliveroo drivers is where many people get caught out. While most businesses only need to register for GST once their annual turnover exceeds $75,000, the ATO has specific rules for ride-sourcing and food delivery services. If you're delivering food through platforms like Deliveroo, you must register for GST from your very first dollar of income—regardless of how much you earn. This requirement applies even if you only make one delivery per month.

Once registered for GST, you'll need to charge 10% GST on your services and lodge Business Activity Statements (BAS) with the ATO, typically on a quarterly basis. The GST you collect isn't yours to keep—you must remit it to the ATO. However, you can claim GST credits on business purchases related to your delivery work, such as fuel, vehicle maintenance, phone expenses, and equipment. This means you can offset the GST you've paid on these items against the GST you owe on your earnings.

Deliveroo Driver Tax Rates and Thresholds for FY 2025-26

As a Deliveroo driver, your income is taxed at the same marginal rates as other Australian residents. The progressive tax system means that higher portions of your income are taxed at higher rates as your earnings increase. It's important to remember that the tax-free threshold of $18,200 applies to your combined income from all sources, not just your delivery earnings.

For the 2025-26 financial year, the individual income tax brackets for Australian residents are:

In addition to these rates, you'll pay the Medicare levy of 2% on your taxable income. For example, if you earn $35,000 from Deliveroo deliveries and have no other income, you'll pay no income tax (as you're below the tax-free threshold) but will still owe $700 in Medicare levy. If you earn $35,000 from Deliveroo and $30,000 from a part-time job, your total income of $65,000 will be taxed at 30% on the amount over $45,000, plus the Medicare levy.

Tax rates are subject to change. Always verify current rates with ATO.gov.au or consult a registered tax agent.

How to Calculate Deliveroo Driver Tax

Calculating your Deliveroo driver tax requires understanding your total income position and applying the relevant tax rates. Here's a step-by-step approach to estimating your tax liability:

First, calculate your total assessable income from all sources. This includes your gross Deliveroo earnings (before any platform fees), wages from other employment, investment income, and any other business income. Next, subtract your allowable deductions to arrive at your taxable income. Deductions reduce the amount of income that is subject to tax, so claiming all legitimate deductions is important for minimising your tax bill.

Once you have your taxable income, apply the tax brackets to calculate your basic income tax liability. Don't forget to add the Medicare levy of 2%. If you have a HECS-HELP debt, you'll also need to calculate your compulsory repayment, which ranges from 1% to 10% of your repayment income depending on your earnings level. For the 2025-26 financial year, compulsory HECS repayments begin once your repayment income exceeds approximately $67,000.

Many experienced Deliveroo drivers use the rule of thumb of setting aside 25-30% of their gross delivery income for tax purposes. However, your actual rate will depend on your total income level, how much you earn from other sources, and the deductions you're able to claim. Using an income tax calculator can help you get a more precise estimate based on your specific circumstances.

Tax Deductions Deliveroo Drivers Can Claim

One of the advantages of working as an independent contractor is the ability to claim business-related expenses as tax deductions. These deductions reduce your taxable income, which in turn lowers your overall tax bill. As a Deliveroo driver, there are numerous expenses you can claim, provided they are directly related to earning your delivery income and you keep proper records.

Vehicle expenses typically represent the largest deduction for delivery drivers. You have two methods for claiming these costs:

• Cents per kilometre method: Allows you to claim 88 cents per kilometre for up to 5,000 business kilometres annually (FY 2025-26 rate). This method is simpler but may result in a smaller deduction if you do extensive delivery work.
• Logbook method: Requires keeping detailed records of your business and personal travel for a continuous 12-week period. You can then claim the business-use percentage of all vehicle expenses, including fuel, registration, insurance, maintenance, and depreciation.

Other common deductions for Deliveroo drivers include mobile phone costs (since you need your phone to receive delivery requests and navigate), parking fees and tolls incurred during deliveries, insulated delivery bags and other equipment, vehicle registration and insurance (when using the logbook method), repairs and maintenance, cleaning costs for your vehicle, and platform fees or commissions charged by Deliveroo. You can also claim home internet costs if you use it for managing your delivery business.

To claim any deduction, you must have spent the money yourself (not been reimbursed by Deliveroo), the expense must be directly related to earning your income, and you must have written evidence such as receipts or invoices. The ATO requires you to keep these records for five years after you lodge your tax return.

Superannuation and HECS-HELP Considerations

Unlike employees who receive compulsory superannuation contributions from their employers, Deliveroo drivers are entirely responsible for their own retirement savings. While making personal super contributions isn't mandatory for the self-employed, it's highly recommended to maintain your long-term financial security. The flexibility of gig work comes with the responsibility of planning for your own future.

When you make personal super contributions as a delivery driver, you may be eligible to claim a tax deduction for those contributions. This effectively reduces your taxable income while building your retirement nest egg. For the 2025-26 financial year, the concessional contributions cap is $30,000, which includes any personal contributions you claim as a tax deduction plus any employer contributions you might receive from other employment. Contributions above this cap may attract additional tax.

If you have a HECS-HELP debt from your university studies, your Deliveroo income also affects your repayment obligations. HECS repayments are based on your total repayment income, which includes your delivery earnings plus any reportable fringe benefits and reportable super contributions. For the 2025-26 financial year, compulsory repayments kick in once your repayment income exceeds approximately $67,000.

Unlike employees who have HECS repayments automatically withheld from their pay, delivery drivers need to proactively account for these repayments in their tax planning. Setting aside extra funds throughout the year can help you avoid an unexpected debt when you lodge your return.

Record Keeping and Lodging Your Tax Return

Good record keeping is essential for accurate tax calculations and ATO compliance. The ATO receives data directly from Deliveroo about your earnings, so they know exactly how much you've made even if you don't report it correctly. Keeping thorough records protects you in case of an audit and ensures you can claim all the deductions you're entitled to.

Here are some best practices for Deliveroo drivers:

• Use a separate business bank account: This keeps your delivery income and expenses separate from personal transactions and makes tracking much easier
• Keep digital records: Photograph or scan all receipts and invoices as soon as you receive them. The ATO accepts digital copies
• Track your vehicle usage: Keep a logbook for a continuous 12-week period to establish your business-use percentage if using the logbook method
• Download your Deliveroo tax summary: Deliveroo provides an annual tax summary showing your gross earnings and fees. Save this along with your monthly statements
• Record expenses promptly: Don't wait until tax time to sort through a pile of receipts. Record expenses weekly or monthly
• Use accounting software: Apps like Xero, MYOB, or even simple spreadsheets can automate much of the tracking process

When it comes time to lodge your tax return, you'll need to report your Deliveroo income in the business income section. If you're also registered for GST, you'll need to lodge your Business Activity Statements throughout the year in addition to your annual tax return. Many drivers find it helpful to use a registered tax agent or accountant, especially in their first year of delivery work.

Frequently Asked Questions

Do I need an ABN to work for Deliveroo in Australia?

Yes, you must have an ABN to work as a Deliveroo driver in Australia. Deliveroo requires all riders to provide a valid ABN before they can start accepting deliveries. You can apply for an ABN for free through the Australian Business Register online.

Do Deliveroo drivers need to register for GST?

Yes, Deliveroo drivers must register for GST regardless of how much they earn. Unlike most businesses that only register once turnover exceeds $75,000, the ATO requires all food delivery and ride-sourcing providers to register for GST from their first dollar of income.

What percentage of my Deliveroo income should I set aside for tax?

A good rule of thumb is to set aside 25-30% of your gross Deliveroo income for tax purposes. However, your actual tax rate depends on your total income from all sources, including any other employment. Using an income tax calculator can give you a more accurate estimate.

Can I claim my phone bill as a tax deduction?

Yes, you can claim a portion of your mobile phone expenses if you use your phone for Deliveroo work, such as receiving delivery requests and navigating. You should keep records to show what percentage of your phone usage is for business versus personal use.

How do I track my vehicle expenses for tax purposes?

You can use either the cents per kilometre method (claiming 88 cents per km for up to 5,000 km) or the logbook method. The logbook method requires recording all trips for 12 continuous weeks to establish your business-use percentage, but often results in a larger deduction.

Conclusion

Understanding Deliveroo driver tax is essential for anyone earning income through food delivery platforms in Australia. As an independent contractor, you have both responsibilities—such as registering for an ABN and GST, keeping accurate records, and setting aside money for tax—and opportunities, including the ability to claim a wide range of business deductions that can significantly reduce your tax bill.

The key to successful tax management as a Deliveroo driver is planning ahead. Set aside money from each payment you receive, keep thorough records of all your expenses, and use our calculators to estimate your tax position throughout the year. Remember that the ATO receives data directly from Deliveroo, so accurate reporting is not just good practice—it's essential for compliance.

For the 2025-26 financial year, familiarise yourself with the current tax brackets, Medicare levy requirements, and super contribution caps to ensure your financial planning is accurate. Use our suite of calculators—including our income tax calculator, Medicare levy calculator, and superannuation calculator—to get a complete picture of your tax position. If your delivery income pushes you into higher tax brackets, you may also want to explore salary sacrifice strategies through other employment or making personal deductible super contributions.

With the right approach to tax planning and the tools available on MyPayAU, you can enjoy the flexibility and earning potential of Deliveroo delivery work without the stress of tax time surprises. If you're unsure about any aspect of your tax obligations, consider consulting a registered tax agent who can provide personalised advice based on your specific circumstances.