Quick answer: What can delivery drivers claim?
If you earn income from food, parcel or other delivery work, you may be able to claim eligible expenses that directly relate to earning that income. You generally need to have incurred the expense yourself, not have been reimbursed, exclude private use and keep appropriate records.
Not automatically. The fact that you use something for delivery work does not mean 100% of the cost is deductible. If an expense has both delivery-work and private use, you generally need to determine the income-producing portion.
Is food and parcel delivery income taxable in Australia?
Income you earn from providing delivery services through a digital platform generally needs to be reported for Australian tax purposes.
This can include amounts earned from activities such as food delivery, parcel delivery and other delivery or courier services.
Depending on your arrangement, you may be working as an employee, contractor or operating a business or sole-trader activity. The correct tax treatment depends on the actual arrangement.
What if delivery driving is only your side hustle?
Having another full-time or part-time job does not automatically make delivery income tax-free.
For example, a Nepali student or worker may earn salary and wages during the week and complete food deliveries in the evening or on weekends. The delivery income still needs to be considered when preparing the person's tax return.
Ramesh works as an employee during the day and completes app-based food deliveries several evenings each week. His salary and wages and his delivery activity are different income sources. The fact that delivery work is only additional income does not automatically mean it can be left out of his tax return.
Three important rules before claiming an expense
You incurred it
You generally need to have spent the money yourself and not have been reimbursed for the expense.
It relates to income
The expense needs the required connection with earning your delivery income rather than being purely private.
Keep records
You need appropriate records to support the deduction and your calculation of any work-related portion.
Common delivery driver expenses that may be deductible
✓ May be relevant
- Eligible car or vehicle expenses
- Fuel where the applicable method permits it
- Work-related phone and data use
- Delivery bags and eligible equipment
- Phone mounts used for delivery work
- Eligible platform fees or commissions
- Eligible parking and tolls
- Certain protective equipment
- Relevant accounting or tax-related costs
- Other expenses directly connected with earning delivery income
✕ Do not automatically claim
- Private car use
- Your entire phone bill where there is private use
- Personal meals and drinks
- Ordinary clothing
- Traffic or parking fines
- Personal accessories unrelated to delivery work
- Expenses reimbursed by another party
- Private travel unrelated to earning delivery income
1. Car expenses for delivery drivers
For many delivery drivers, the vehicle is one of the largest costs associated with earning delivery income.
If you use your own eligible car to earn delivery income, you may be able to claim the work-related portion of eligible car expenses using an applicable method.
For individuals using an eligible car, the two commonly relevant methods are:
- the cents-per-kilometre method, and
- the logbook method.
From 1 July 2026, the cents-per-kilometre rate is 91 cents per kilometre for eligible taxpayers who elect to use this method for qualifying car expenses.
The cents-per-kilometre rate is not an additional amount on top of separately claiming the running costs already covered by that method. You also should not apply it to private kilometres.
For a detailed explanation, see: Car Expenses Tax Deduction Australia: Cents per Kilometre vs Logbook Method .
2. Logbook method for delivery work
For drivers with significant business or work-related vehicle use, the logbook method may be relevant.
Broadly, this method uses your work or business-use percentage to calculate the deductible portion of eligible actual car costs, subject to the applicable requirements.
Relevant costs can potentially include items such as:
- fuel,
- registration,
- insurance,
- servicing,
- repairs,
- decline in value, and
- other eligible car costs.
3. What if you deliver using a motorcycle, scooter or bicycle?
The special tax calculation rules applying to a “car” do not necessarily apply in the same way to motorcycles, scooters, bicycles and other vehicles.
If you use another type of vehicle for delivery work, the appropriate treatment of the actual expenses and any private-use portion needs to be considered.
4. Phone and mobile data expenses
A smartphone can be essential for app-based delivery work. Drivers may use their phone to:
- accept delivery orders,
- use GPS navigation,
- contact customers,
- communicate with a platform,
- confirm deliveries, and
- manage delivery activity.
If you use the same phone privately, you generally need to determine an appropriate work or business-related portion rather than claiming the entire bill.
Anita uses her personal mobile phone for food-delivery apps, navigation and customer calls, but also uses it extensively for private calls, social media and entertainment.
She should not automatically claim 100% of her phone costs. She needs a reasonable basis for determining the portion relating to her income-producing delivery activity.
Read our full guide: Phone and Internet Tax Deductions for Nepali Workers in Australia .
5. Phone mounts and delivery accessories
Delivery drivers often purchase equipment specifically to make their delivery activity possible or safer. Depending on the circumstances, eligible work-related equipment may include items such as:
- a vehicle phone mount,
- delivery-related charging equipment,
- eligible navigation accessories,
- delivery bags,
- thermal or insulated bags, and
- other equipment used in carrying out deliveries.
How the cost is claimed can depend on the nature and cost of the item, how long it is expected to be used and the extent of private use.
6. Delivery bags and insulated equipment
If you purchase a thermal or insulated delivery bag specifically for earning food-delivery income, the cost may have a direct connection with your delivery activity.
Again, the appropriate tax treatment can depend on the cost, nature and expected useful life of the item.
7. Platform fees and commissions
Digital delivery platforms may deduct fees or commissions from amounts associated with your delivery work.
Eligible fees or commissions directly connected with earning your platform income may be deductible, depending on your circumstances.
A delivery platform records gross delivery earnings and deducts an eligible platform service fee before paying the remaining amount to the driver.
The driver should keep the platform statements and understand both the income and expense components rather than simply relying on the net bank deposit without reviewing the underlying records.
8. Parking and toll expenses
Parking fees and tolls incurred as part of eligible income-producing delivery activity may potentially be deductible.
However, private travel and private parking should not simply be included.
Keep toll statements and parking receipts where relevant and record the business purpose of the trip.
9. Vehicle insurance and registration
Where the applicable car-expense method allows actual vehicle costs to be considered, eligible insurance and registration expenses may form part of the calculation.
If the vehicle is also used privately, only the applicable income-producing portion should be considered.
10. Repairs, servicing and maintenance
Delivery work can add considerable kilometres to a vehicle. Where actual vehicle costs are relevant under the method you use, eligible servicing, maintenance and repair costs may form part of the calculation.
You generally need to account for private use and comply with the requirements of the chosen method.
11. Vehicle and equipment decline in value
Some assets used to earn delivery income may lose value over time. Depending on the asset, cost, use and applicable tax rules, you may need to consider decline in value rather than automatically claiming the entire purchase price immediately.
This can be relevant to vehicles and certain higher-cost equipment.
12. Can delivery drivers claim clothing?
Ordinary everyday clothing is generally private, even if you prefer to wear particular clothes while completing deliveries.
Do not assume that shoes, jeans, jackets, shorts or ordinary weather clothing become deductible simply because you wear them while working.
Different rules can apply to certain protective or qualifying work clothing depending on the circumstances.
13. Can you claim meals while doing deliveries?
Buying lunch, dinner, coffee or snacks while working does not normally make those ordinary personal food costs deductible.
14. Parking and traffic fines
Do not confuse a parking fee with a parking fine.
An eligible parking fee incurred during income-producing activity may be different from a fine or penalty for breaking a law. Traffic and parking fines should not simply be treated as ordinary delivery expenses for deduction purposes.
15. What about driving from home to start deliveries?
Travel deductions can be fact-specific, particularly for gig workers whose work does not always involve a conventional fixed workplace.
Do not automatically assume every kilometre from the moment you leave home until the moment you return home is deductible.
You should consider when your income-producing delivery activity actually begins, the purpose of each journey and the applicable vehicle-expense rules.
16. Do food delivery drivers have to register for GST?
This is an important area where delivery work should not be confused with passenger ride-sourcing.
Taxi and ride-sourcing services have special GST registration rules. Food or parcel delivery does not automatically mean that the same compulsory GST registration rule applies simply because you use an app or drive a vehicle.
For delivery or other business activities, the normal GST registration rules and turnover threshold may instead need to be considered, depending on the activity and circumstances.
For more information, see: GST Registration in Australia: When Do Nepali ABN Holders Need to Register? .
17. Can delivery platforms report your earnings to the ATO?
Yes, digital-platform reporting is an important reason to keep your own records accurate.
Australia's Sharing Economy Reporting Regime requires relevant electronic distribution platforms to report certain transactions to the ATO. The regime includes services facilitated through digital platforms, including food delivery.
18. What if you deliver for multiple apps?
Many delivery drivers use more than one platform during the same financial year.
For example, a driver may receive income from multiple food, parcel or courier platforms. You should keep records for all relevant sources rather than reporting only the platform you use most often.
Suman completes deliveries through two different apps during the year. He earns $8,000 through one and $4,000 through another.
He should not treat the second platform as irrelevant merely because it is the smaller source of income. His records should capture the relevant income and eligible expenses across his delivery activity.
19. What about tips and bonuses?
Amounts you receive because of your delivery activity can have tax consequences even where they are described as bonuses, incentives or tips.
Do not assume that an amount is excluded from income simply because it was not part of the standard delivery fee.
Keep records of the different amounts received through your delivery activity.
20. ABN and sole-trader records
If you carry on your delivery activity as a sole trader or contractor under an ABN, keeping business records becomes especially important.
Useful records can include:
- Platform income statements.
- Bank records.
- Invoices where relevant.
- Platform fee and commission statements.
- Vehicle expense records.
- Kilometre records or logbook documents.
- Fuel and servicing records where relevant.
- Phone and data calculations.
- Receipts for delivery equipment.
- Parking and toll records.
- Insurance and registration documents where relevant.
- GST records if registered.
21. Employee or contractor?
Not everyone who performs delivery work necessarily has the same legal or tax arrangement.
Whether you are an employee, independent contractor or carrying on a business depends on the actual relationship and circumstances, not simply the label used casually by the worker or platform.
This distinction can affect how income and expenses are reported.
Delivery-driver car deduction example
Assume a driver is eligible to use the cents-per-kilometre method and has appropriate records supporting 3,200 qualifying income-producing kilometres during the 2026–27 income year.
Using the 2026–27 rate: 3,200 km × $0.91 = $2,912
This is only an illustration. The kilometres must actually qualify and the taxpayer must satisfy the requirements for using the method.
Delivery driver deduction guide
| Expense | Potential treatment | Key consideration |
|---|---|---|
| Eligible car use | May be deductible | Use an appropriate calculation method and exclude private use. |
| Fuel | May be relevant | Treatment depends on the vehicle and car-expense method used. Do not double claim. |
| Phone & data | May be deductible | Claim only the eligible income-producing portion where there is mixed use. |
| Delivery bag | May be deductible | Needs to relate to earning delivery income; treatment can depend on the nature and cost of the item. |
| Phone mount | May be deductible | Consider work use, private use and applicable asset rules. |
| Platform fees | May be deductible | Keep statements showing fees and commissions. |
| Eligible parking | May be deductible | Must relate to qualifying income-producing activity. |
| Eligible tolls | May be deductible | Separate private travel from delivery-related travel. |
| Car insurance | May be relevant | Depends on the car-expense method and business-use percentage. |
| Repairs & servicing | May be relevant | Actual costs may be relevant under an applicable method. |
| Ordinary meals | Generally private | Working while purchasing food does not automatically make it deductible. |
| Ordinary clothing | Generally private | Normal everyday clothing does not become deductible merely because it is worn while delivering. |
| Traffic fines | Do not claim as ordinary work expense | A fine is different from an eligible parking or toll expense. |
How should delivery drivers keep records?
Good records can make a major difference when preparing your tax return.
Instead of trying to reconstruct a year's worth of deliveries at tax time, create a simple system throughout the year.
- Download platform earnings statements regularly.
- Keep receipts for eligible expenses.
- Track qualifying kilometres.
- Keep a logbook if using a method that requires one.
- Record business and private vehicle use separately.
- Keep phone-use calculations.
- Save toll and parking records.
- Keep equipment purchase receipts.
- Record platform commissions and fees.
- Keep relevant insurance and vehicle documents.
- Retain GST records if registered.
- Keep records for every platform you use.
Common tax mistakes delivery drivers should avoid
- Not reporting delivery income. App-based income generally needs to be considered when preparing your tax return.
- Looking only at net bank deposits. Review your platform statements so you understand gross income, fees and other amounts.
- Claiming 100% of vehicle costs. Private vehicle use generally needs to be separated.
- Claiming 100% of the phone bill. If your phone is also used privately, the eligible work or business portion needs to be determined.
- Double claiming car costs. Do not use the cents-per-kilometre rate and then separately add expenses already covered by that method.
- Using the car cents-per-kilometre method for the wrong vehicle. Motorcycles and bicycles are not treated as cars for these special car-expense rules.
- Assuming all food is deductible. Ordinary meals and drinks are generally personal expenses.
- Claiming fines. Do not confuse deductible parking or toll costs with penalties for breaking road or parking laws.
- Forgetting income from a second delivery platform. Keep records across all platforms used during the year.
- Confusing food delivery with rideshare GST rules. Passenger ride-sourcing has special GST registration rules. Do not automatically apply those rules to food delivery.
Delivery driver tax-time checklist
- Gather statements from every delivery platform.
- Check total delivery income for the financial year.
- Review platform fees and commissions.
- Separate private and income-producing vehicle use.
- Choose the appropriate car-expense method if applicable.
- Check qualifying kilometres.
- Review phone and data use.
- Gather delivery-equipment receipts.
- Check eligible parking and toll expenses.
- Review insurance, servicing and vehicle records where relevant.
- Check whether any expenses were reimbursed.
- Consider your GST position.
- Keep records supporting every deduction claimed.
Related Hamro Accountant guides
Tax Return for Uber, Delivery and Rideshare Drivers in Australia
Phone and Internet Tax Deductions for Nepali Workers in Australia
GST Registration in Australia for Nepali ABN Holders
Work-Related Deductions Australia: What Can You Claim?
Deductions Without Receipts Rules for Nepali in Australia
Frequently asked questions
Doing delivery work in Australia?
Hamro Accountant can help you understand your delivery income, car expenses, phone costs, platform fees, GST position and other eligible deductions when preparing your Australian tax return.
General information only: This article provides general Australian taxation information and does not constitute personal tax, financial or legal advice. The tax treatment of delivery income and expenses depends on your working arrangement, whether you are an employee, contractor or carrying on a business, the type of vehicle used, the car-expense method selected, your private use, GST registration status and your individual circumstances. The 91 cents-per-kilometre rate referred to in this article applies from 1 July 2026 for the 2026–27 income year to eligible taxpayers using the cents-per-kilometre method. Australian tax rules and ATO guidance can change. Check current ATO guidance and obtain advice appropriate to your circumstances before lodging your tax return.