Thinking about driving for Uber or DiDi? Read this first.

Most people don't research rideshare before they start. They have a car, they have time, and earning money from both feels straightforward. So they sign up, complete their first trip, and figure things out as they go.

That works. Until it doesn't.

The drivers who struggle aren't usually the ones who don't work hard. They're the ones who start without understanding the financial and legal reality of what they're doing.

This is the practical side: what rideshare actually involves, what it costs before you earn a cent, and what you need to get right from day one.

What rideshare actually is

When you drive for Uber, DiDi, or any rideshare platform, you are generally operating as an independent contractor, effectively running a small business. The platform is your primary source of work, but not your employer. This classification is subject to ongoing legal and regulatory review in Australia, but the practical reality remains the same: the costs, the tax obligations, and the super. All of that is on you.

Nobody withholds tax for you. Your earnings are assessable income, and your taxable profit is what's left after platform fees and legitimate business expenses.

Nobody pays your superannuation. In most cases, you are responsible for your own super contributions. Nobody is setting that aside for you automatically.

Nobody covers your costs. Petrol, maintenance, tyres, insurance, and depreciation are all your responsibility.

Your car is not just your vehicle. It is your primary business asset and your biggest expense.

What it costs before you earn a cent

The tax reality

You don't need to understand the entire Australian tax system before you start. But two things cannot wait.

GST registration is not optional

Rideshare is classified as taxi travel under Australian tax law. This means different rules apply compared to most other sole trader work:

This rule applies to rideshare, specifically carrying passengers. If you only do delivery work and never carry passengers, the standard $75,000 threshold applies instead. If you do both, the rideshare rule overrides. Register from day one.

Nobody sets tax aside for you

Every dollar that hits your bank account from the platforms is gross income, not take-home pay. Tax still needs to come out of it, and working out the right amount to set aside depends on your total income and expenses. A registered tax agent can help you work this out for your situation.

Your start date matters

The date you register your ABN and GST affects what income and expenses you can report from. Keep records from the very beginning. Your first platform registration email is a useful reference for your start date.

Understanding platform fees

Before you drive a single kilometre, understand what the platforms actually take.

Platform fees for Australian rideshare drivers typically range from 15% to 27.5% depending on the platform, the service type, and your market. That comes off the top before you see a cent.

Do's and don'ts

The vehicle question

You don't need a new car. Buying one too early is one of the most common and costly mistakes new drivers make.

A newer, more expensive car increases your depreciation, your finance costs, and your insurance, without proportionally increasing your earnings. Many experienced drivers favour a three to four year old hybrid for its lower petrol costs and slower depreciation.

If you already own a suitable vehicle, start there. Make decisions based on real data, not assumptions about what you'll earn. Article 4 in this series covers the vehicle decision in detail.

Check your state requirements

Rideshare is regulated at the state level in Australia. Before you drive, check the specific licensing, accreditation, and background check requirements in your state. Requirements vary. Check with your platform or your state transport department directly.

The one habit that will define your results

Start your logbook on day one. Not next week. Day one.

To use the logbook method, the ATO requires a valid 12-week continuous record of your vehicle's business use. Without it, you may be limited to the cents-per-kilometre method, which has a cap and is often significantly lower than what drivers can record using actual vehicle expenses.

You cannot backfill a logbook. You cannot reconstruct it from memory. Start it from your first trip or lose the option entirely.

Where to from here

Rideshare is simple to start, but not simple to run well.

Get your ABN and GST registration sorted first. That is the one thing that genuinely cannot wait. Everything else, your systems, your habits, your vehicle decisions, builds from there.