Are you currently a driving partner of Deliveroo? If yes, then our tax guide is the perfect guide for you to get your tax obligations accurately and avoid an audit of ATO.
ABN Requirements
As a Deliveroo partner, it is imperative for you to have an ABN since you are paid as an entrepreneur. This means that you are responsible and eligible to pay taxes on your income and organize your pension contributions.
An ABN application is free via the Australian Business Register website, and this is a requirement when registering to become a Deliveroo Partner.
Tax obligations
According to the ATO act, any fee earned while working as a Deliveroo partner is considered income and as such must be acknowledged on the tax return.
Note: Do not spend all Deliveroo earnings immediately!
If you are a Deliveroo partner, in addition to other jobs or income-generating activities (e.g., Foodora, Uber, Uber Eats), it is advisable to save a minimum of 30% of all payments received to avoid having a massive bill at the time of taxes.
Need help deciding how much you ought to save? Speak to a tax agent like Etax.com.au. Sincerely, it is always wise to keep a little more, because it is much better compared to owning the ATO money.
GST Obligations
If you are into food delivery and you earn less than $ 75,000, it is not mandatory for you to register for the GST (but you should have an ABN). However, you should sign up for GST as a Deliveroo partner if you earn above $75,000 a year.
Deliveroo's partners are currently free from the ATO's GST mandatory tax, unlike drivers from Uber, while all Uber drivers must still sign up for GST even if they earn less than the $75,000. This is because tax legislation works differently for those involved in food delivery than those who drive a taxi. However, if you engaged in food delivery and still drive passengers, then you must register for GST.
This is the point where it becomes a bit complicated: when you are into food delivery and still drive passengers.
What happens if you are a Deliveroo partner and still offer “carpool” services?
If you are a Deliveroo partner and offer carpool services (such as Uber, GoCatch). Then, you must register for GST, and your GST obligations will apply to your rideshare portion and all other business activities.
Tax Benefits
You can lay a claim to numerous tax deductions as a Deliveroo partner. Here is a list of some work-related expenses that become deductible when working with Deliveroo:
- Insurance
- Repair and maintenance of bicycles or scooters
- Tires and equipment for bikes or scooters
- Registration costs
- You may also request additional costs directly related to the transaction as a Deliveroo partner:
- Cleaning costs
- Mobile prices
- Sun protection articles
You will already receive high-quality security equipment and equipment when you register as a member of the Deliveroo Pilot, which is not the subject of any complaint. Nonetheless, other direct expenses related to the work you usually pay for may be requested upon your return.
Record Keeping
As with any other job, you must monitor Deliveroo's work-related expenses to deduct them on your tax return.
It helps to ensure that you do not lose any deduction by saving money on your return, but it is also an ATO requirement if you want to see evidence in support of any claims made upon your arrival.
Deliveroo Tax Examples:
Example 1:
David is a Deliveroo partner, and he has received payments of $29,800 in the last fiscal year from Deliveroo. Since David does not offer Uber or other transport sharing services, all he requires is:
- An ABN
- Declare his $29,800 worth of earning in Deliveroo payments on his tax return.
- Pay taxes on this $29,800 income from Deliveroo, plus any other income earned during the fiscal year
Example 2:
Charles is a Deliveroo partner and has made $19,000 from Deliveroo's in the last fiscal year. He also provided carpool services and earned $4,500 more in payments. Because Charles offers two services (Deliveroo and his carpool) he should:
- Sign up for an ABN,
- Include all Deliveroo and Uber documents in the tax return
- Register for GST and make GST payments for Uber and Deliveroo
- Submit a financial statement (BAS).