How to Apply for an ABN for Uber Eats: A Step-by-Step Guide

If you’re planning to drive for Uber Eats in Australia, one of the first essential steps you’ll need to take is applying for an Australian Business Number (ABN). Having an ABN not only allows you to operate as a legitimate business but also ensures you comply with tax laws, including GST obligations and the ability to claim business-related expenses. In this guide, we’ll walk you through why you need an ABN for Uber Eats and how you can apply for one quickly and easily.

Why Do You Need an ABN for Uber Eats?

As an Uber Eats delivery driver, you are classified as a sole trader under Australian law. This means that you are running your own business, even though you might not have a traditional storefront. Here’s why having an ABN is crucial for your Uber Eats gig:

1. Tax Compliance: The ABN allows you to deal directly with the Australian Taxation Office (ATO) for tax-related matters. It ensures you are compliant with tax laws and enables you to pay the correct amount of tax at the end of the financial year.
2. Claim Business Expenses: With an ABN, you can claim expenses related to your Uber Eats business. This includes fuel, car maintenance, phone bills, and other costs associated with your deliveries, which can significantly reduce your taxable income.
3. GST Registration: If your earnings exceed the GST threshold of $75,000 annually, you are required to register for GST. Your ABN is required to register for GST with the ATO.
4. Professional Invoicing: When working as a delivery driver, having an ABN allows you to issue professional invoices for your deliveries. This is essential for your record-keeping and ensures your earnings are tracked correctly for tax purposes.
5. Avoid Withholding Tax: If you don’t have an ABN, Uber Eats may withhold tax from your earnings at the highest rate (47%). Having an ABN ensures that you are not overtaxed.

How to Apply for an ABN for Uber Eats: A Simple Step-by-Step Process

Now that you understand why you need an ABN for Uber Eats, it’s time to apply. Fortunately, the process is simple and can be done online in just a few steps.

Step 1: Determine Your Eligibility

Before applying, ensure that you meet the basic criteria:

• You are working as a sole trader (self-employed).
• You are providing delivery services through Uber Eats for payment.
• You plan to operate in Australia and meet the tax requirements.

Step 2: Gather Required Information

To complete your ABN application, you will need to provide the following details:

• Personal information: Full name, date of birth, address, and contact information.
• Tax File Number (TFN): While you can apply for an ABN without a TFN, having one simplifies the process and ensures that your tax affairs are in order.
• Business details: As an Uber Eats driver, your business is considered a sole trader operation, so you’ll need to describe the nature of your business as “food delivery services” or similar.
• Bank account information: This is optional but can be helpful for setting up payments related to your ABN.

Step 3: Apply Online for Your ABN

The fastest way to apply for an ABN is through the Australian Business Register (ABR). You can complete the application directly on the ATO’s website. The form asks basic questions about your business, and within a few minutes, you should receive your ABN.

If you’re not sure which form to use, you can refer to the ABN Application Guide for sole traders, which is available on the ATO website.

Step 4: Wait for Confirmation

In most cases, your ABN will be issued immediately after you submit your application. However, if there are any issues or additional information is required, the process may take a few days to complete. You’ll receive your ABN number through email.

Step 5: Register for GST (If Required)

If you expect your income from Uber Eats to exceed $75,000 within the financial year, you are required to register for Goods and Services Tax (GST). This can be done as part of your ABN application process. If your income is below the threshold, you can opt not to register for GST, but you may still choose to do so voluntarily.

Tips for Managing Your ABN as an Uber Eats Driver

Once you have your ABN, it’s important to manage your business affairs responsibly. Here are a few tips to help you along the way:

1. Track Your Expenses: Keep detailed records of any expenses you incur while working for Uber Eats, including vehicle-related costs, mobile phone usage, and other business-related outgoings. These can be claimed as tax deductions.
2. Understand Your Tax Obligations: As a sole trader, you’ll need to file an annual tax return. Be aware of your tax obligations and consider setting aside a percentage of your income throughout the year to ensure you have enough to cover your tax bill.
3. Use Accounting Software: Consider using accounting software like Xero, MYOB, or QuickBooks to track your income and expenses. This can make filing your tax return much easier.
4. Keep Your ABN Details Updated: If your personal details or business activities change, make sure to update your ABN registration with the ATO to avoid any issues down the line.

Final Thoughts

Applying for an ABN for Uber Eats is a crucial step in running your delivery business in Australia. Not only does it ensure you’re compliant with tax laws, but it also allows you to take advantage of valuable business deductions and avoid unnecessary tax withholding. The process is simple and can be done online in a matter of minutes. Once you’ve registered for your ABN, you’ll be ready to start earning as an Uber Eats driver and grow your business efficiently.

If you’re ready to get started, head over to the Australian Business Register website and apply for your ABN today.