Delivering food or goods using a digital platform or app?

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As a delivery driver, do I need to register for GST or apply for an ABN?

• If you deliver food or goods for someone else as an employee, you will not have any goods and services (GST) obligations as part of your employment
• If you’re a contractor (i.e. you run your own business as a service provider for a larger company) and your turnover is under $75,000 (and you expect to earn less than this) in a financial year, then you are not required to register for GST. You are, however, required to apply for an Australian Business Number (ABN). You can register for an ABN (for free) at this website. You may need to contact the digital platform directly about linking your ABN to your account.
• If your turnover is $75,000 or more (or you think you’ll earn above this amount) then you’ll need to get an ABN and register to collect GST. Once you’ve registered, you must charge, collect and then report the GST you’ve collected to us via a business activity statement (BAS) – you’ll also be able to claim GST credits for business expenses.

I deliver food or goods using a digital platform or app, how does this affect my tax return?

How you report your income on your tax return depends on whether you’re an employee or whether you’re a contractor.

If you’re employed by the delivery service provider, you’ll report your income as salary and wages; if you’re a contractor, you’ll need to complete the business sections in your tax return to report your net income or loss. You can confirm your employment status by checking any contracts you’ve signed with the service provider, or check out guide on employees versus contractors over on our website.

You can usually claim income tax deductions relating to income you earn as long as:

• You’ve spent the money and not been reimbursed
• The costs relate to doing your job and aren’t a private expense (such as travel from home to the job)
• You work out how much of the total expense is for your business and how much for personal use
• You keep appropriate records to prove your claim.

If I am a contractor, how do I make sure I manage my tax?

There are a couple of options you can use to make sure you don’t get a tax bill when you lodge your return:

• You can pay smaller amounts towards your income tax account ahead of time. You can make a payment using our preferred payment methods at any time and as often as you like using your payment reference number (PRN).
• You can sign up for our pay as you go income tax instalment system (PAYGI). PAYGI is particularly useful where you have a regular source of income and you can predict how much you’ll make in a year. You tell us how much you think you’ll earn (and in some cases, how much tax you’ll need to pay) and we’ll issue you an instalment activity statement each month, quarter or year so you can increase or decrease your payments as required.

If you’ve reached the end of the financial year and have a tax bill to pay, we can often help you by setting up a payment plan. You can create a payment plan online using our online services in myGov, or you can phone us to discuss your situation for tailored advice and support.

I’m here in Australia on a working holiday maker visa and I deliver using a digital platform or app to earn some cash. Do I need to lodge a tax return?

There are a couple of things you’ll need to work out before you lodge your tax return:

• Are you an Australian resident for tax purposes? Generally speaking, if you earn assessable income in Australia during the financial year you’ll need to lodge an Australian tax return. Different tax rates may apply depending on your situation, and you may need to report your income at a particular section in your return to be taxed at the right rate.
• Are you an employee or a contractor? If you’re employed, they’ll apply the working holiday maker tax rate of 15% to any payments you receive, and you’ll report your earnings at Adjustments – Working holiday makers on your tax return. If you’re a contractor, you’ll need to register for an ABN and manage your tax affairs as a small business.

Our guide to the sharing economy and tax is full of handy information for new food or goods delivery drivers – you can also ask our Community for help!