Published: 10 April 2026

Menulog Delivery Tax: Complete Guide for Australian Drivers [FY 2025-26]

Delivering food through Menulog has become an increasingly popular way for Australians to earn extra income on a flexible schedule. Whether you're driving part-time alongside your main job or making deliveries your primary source of earnings, understanding your Menulog delivery tax obligations is essential for staying compliant with the Australian Taxation Office (ATO) and maximising your after-tax income. Many new drivers are surprised to learn that delivering for Menulog comes with specific tax requirements that differ significantly from traditional employment.

As a Menulog delivery driver, you're classified as an independent contractor rather than an employee. This means you're essentially running your own small business, which brings both responsibilities and opportunities. You'll need to manage your own tax obligations, including potential GST registration, while also being able to claim valuable tax deductions that employees cannot access. This comprehensive guide will walk you through everything you need to know about Menulog delivery tax for the 2025-26 financial year, from understanding your registration requirements to lodging your tax return with confidence.

What is Menulog Delivery Tax?

Menulog delivery tax refers to the various tax obligations that apply to individuals who earn income by delivering food through the Menulog platform. Unlike traditional employees who have tax automatically withheld from their wages by their employer, Menulog drivers receive their full earnings upfront and are responsible for managing their own tax affairs. This includes registering for an Australian Business Number (ABN), potentially registering for Goods and Services Tax (GST), keeping accurate records, and lodging tax returns.

The ATO treats food delivery drivers similarly to rideshare drivers when it comes to tax obligations. This classification as independent contractors means you have the flexibility to choose when and how much you work, but you also bear the responsibility of ensuring you meet all tax compliance requirements. Understanding these obligations from the start can save you significant stress and potential penalties down the track, while also ensuring you claim all the deductions you're entitled to reduce your taxable income.

ABN and GST Requirements for Menulog Drivers

One of the first steps in setting up your Menulog delivery business is obtaining an Australian Business Number (ABN). You cannot work for Menulog without an ABN, as the platform requires this for payment processing and tax reporting purposes. The good news is that applying for an ABN is free and can be completed online through the Australian Business Register in approximately 15 minutes. You'll need to provide details about your business structure (typically sole trader for delivery drivers) and the nature of your activities.

When it comes to GST registration, the rules for food delivery drivers are specific and important to understand. While most businesses only need to register for GST once their annual turnover exceeds $75,000, the ATO has special requirements for ride-sourcing and food delivery services. If you're delivering food through platforms like Menulog, you must register for GST regardless of how much you earn—even if you only make a single delivery. This requirement applies from your very first dollar of income and failing to register can result in penalties and interest charges from the ATO.

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. While you must remit this GST to the ATO, you can also claim GST credits on business purchases related to your delivery work, such as fuel, vehicle maintenance, and phone expenses. This means the GST you pay on these business items can be offset against the GST you owe on your Menulog earnings, potentially reducing your overall tax burden significantly.

Income Tax Rates for Menulog Delivery Drivers (FY 2025-26)

Your Menulog delivery income is considered assessable business income that must be declared on your annual tax return. This income is added to any other earnings you receive, such as wages from a regular job, investment income, or other business activities. Understanding how your total income affects your income tax liability is crucial for effective financial planning and avoiding surprises when you lodge your tax return.

For the 2025-26 financial year, Australia uses a progressive tax system where higher income levels attract higher tax rates. As a Menulog driver, you'll pay tax at the same marginal rates as employees and other sole traders. Here are the individual income tax brackets for Australian residents:

In addition to income tax, you'll need to pay the Medicare levy of 2% on your taxable income. This applies to all Australian residents and is calculated automatically when you lodge your tax return. It's important to remember that the tax-free threshold of $18,200 applies to your combined income from all sources. If you have a regular job earning $40,000 and make an additional $15,000 from Menulog deliveries, your total income of $55,000 means a significant portion of your delivery earnings will be taxed at 30% plus the Medicare levy.

Tax Deductions for Menulog Delivery Drivers

One of the significant 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 Menulog delivery driver, there are numerous expenses you can claim, provided they are directly related to earning your delivery income and you keep proper records throughout the year.

Vehicle expenses typically represent the largest deduction category for delivery drivers. You have two methods for claiming these costs: the cents per kilometre method and the logbook method. The cents per kilometre method allows you to claim a set rate (currently 88 cents per kilometre for the 2025-26 financial year) for up to 5,000 business kilometres annually. This method is simpler but may result in a smaller deduction if you do extensive delivery work. The logbook method requires you to keep detailed records of your business and personal travel for a continuous 12-week period, but it often produces a larger deduction if you use your vehicle extensively for Menulog deliveries.

Other common deductions for Menulog drivers include mobile phone costs (since you need your phone to receive delivery requests and navigate to restaurants and customers), parking fees and tolls incurred during deliveries, insulated delivery bags and other equipment necessary for the job, vehicle registration and insurance (when using the logbook method), repairs and maintenance, cleaning costs for your vehicle, and any platform fees or commissions charged by Menulog. You can also claim a portion of your home internet if you use it for managing your delivery business, such as checking earnings statements or communicating with Menulog support.

To claim any deduction, you must have spent the money yourself (not been reimbursed by Menulog), 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. Using a dedicated business bank account and keeping digital copies of all receipts can make this process much more manageable and ensure you don't miss any legitimate deductions.

How to Calculate Your Menulog Delivery Tax

Calculating your tax liability as a Menulog driver involves several steps to ensure accuracy and compliance. First, determine your total assessable income from all sources, including your Menulog earnings, any wages from employment, investment income, and other business activities. Your Menulog tax summary will show your gross earnings before any fees or commissions, which is the amount you need to include in your tax return.

Next, calculate your total deductible expenses related to your delivery work. This includes vehicle expenses using either the cents per kilometre or logbook method, phone costs, equipment purchases, and any other business-related expenses. Subtract these deductions from your total income to arrive at your taxable income. This is the figure that determines which tax bracket you fall into and how much tax you'll owe.

Apply the relevant tax rates to your taxable income, including the Medicare levy of 2%. If you're registered for GST, remember that this is separate from your income tax and needs to be calculated and reported through your Business Activity Statements. Using an online income tax calculator can help simplify this process and give you a clear picture of your expected tax liability throughout the year, allowing you to set aside the appropriate amount from each payment you receive.

Superannuation and HECS-HELP Considerations

Unlike employees who receive compulsory superannuation contributions from their employers, Menulog 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, and making voluntary super contributions is one way to ensure you're building wealth for retirement.

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, so it's important to track your contributions carefully if you're making them from multiple sources.

If you have a HECS-HELP debt from your university studies, your Menulog 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, with rates ranging from 1% to 10% depending on your income level. Unlike employees who have HECS repayments automatically withheld from their pay, delivery drivers need to proactively account for these repayments in their tax planning.

Frequently Asked Questions

Do I need to register for GST as a Menulog driver?

Yes, you must register for GST from your very first dollar of Menulog income. Unlike other businesses that only need to register once turnover exceeds $75,000, the ATO requires all food delivery drivers to register for GST regardless of earnings. You'll need to charge 10% GST on your services and lodge quarterly Business Activity Statements.

How much tax should I set aside from my Menulog earnings?

A good rule of thumb is to set aside 25-30% of your gross Menulog income for tax purposes. However, the exact amount depends on your total income from all sources. If you have other employment pushing you into higher tax brackets, you may need to set aside more. Using our income tax calculator can help you estimate your specific tax rate.

What vehicle expenses can I claim as a Menulog driver?

You can claim vehicle expenses using either the cents per kilometre method (88 cents/km for up to 5,000km) or the logbook method. The logbook method typically yields larger deductions if you drive extensively. You can also claim parking, tolls, delivery bags, phone costs, and a portion of your vehicle registration and insurance if using the logbook method.

Does Menulog report my income to the ATO?

Yes, Menulog reports your earnings to the ATO through the taxable payments reporting system. This means the ATO knows exactly how much you've earned even if you don't report it correctly. It's essential to declare all your Menulog income on your tax return to avoid penalties for non-disclosure.

Can I claim my phone bill as a tax deduction?

Yes, you can claim a portion of your mobile phone expenses as a tax deduction since you use your phone to receive delivery requests and navigate. You'll need to keep records showing the percentage of phone use that is work-related versus personal use. The same applies to your home internet if you use it for managing your delivery business.

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 Menulog 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, ultimately reducing your tax bill.

Best practices for Menulog drivers include using a separate business bank account to keep delivery income and expenses separate from personal transactions, keeping digital records of all receipts and invoices, tracking your vehicle usage with a logbook if using the logbook method, downloading your Menulog tax summary annually, and recording expenses promptly rather than waiting until tax time. Many drivers find it helpful to use accounting software or even simple spreadsheets to track their income and expenses throughout the year.

When it comes time to lodge your tax return, you'll need to report your Menulog 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. For delivery drivers who earn significant income, the ATO may require you to pay tax quarterly through Pay As You Go (PAYG) instalments. This system helps you avoid a large tax bill at the end of the financial year by spreading payments throughout the year.

Conclusion: Managing Your Menulog Delivery Tax Effectively

Working as a Menulog delivery driver offers flexibility and earning potential, but it also comes with important tax responsibilities that differ from traditional employment. By understanding your obligations around ABN and GST registration, keeping accurate records of your income and expenses, and claiming all legitimate deductions, you can stay compliant with the ATO while minimising your Menulog delivery tax burden.

Remember that as a Menulog driver, you're essentially running your own small business. This means you need to be proactive about setting aside money for tax, understanding your GST obligations, and planning for your own superannuation and any HECS-HELP repayments. The ATO receives data directly from Menulog, so transparency and accurate reporting are essential to avoid penalties and interest charges.

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 throughout the year. With proper planning and the right tools, you can enjoy the benefits of flexible delivery work without the stress of tax time surprises.

Disclaimer: Tax rates are subject to change. Always verify current rates with ATO.gov.au. The information provided is general in nature and does not constitute professional tax advice. Consider consulting a registered tax agent or accountant for personalised guidance.