How does Uber income affect the Age Pension?

Font Size:

Uber is becoming a popular way to top up income for those on the Age Pension. With some careful calculations, you can see a financial benefit, but how is this income assessed by Centrelink?

Q. Ron

How does driving for Uber work for pensioners? Uber drivers have to have an ABN, and would also have costs, such as insurance, petrol, tolls, commissions, etc. So, how would this be reported to Centrelink?

I’m looking at this right now and am keen to try it.

A. Uber is indeed a popular way to top up income for those on the Age Pension and, with some careful calculations, you can see a benefit to your bank account.

The good news is that your net income – i.e. profit earned as a sole trader – is the amount that is assessed by Centrelink. Therefore you should be able to deduct all your outgoings from your earnings before your Age Pension is affected.

In regards to reporting your income to Centrelink, you will need to contact it directly and ask how to do this, as it will assess your individual circumstances and advise the best way to do so.

The initial outgoings before becoming an Uber driver can quickly mount up: you need to register with Uber, make sure your car is fully roadworthy and, of course, ensure you have the correct insurance, which may mean you see a jump in your premium.

You will also have to declare your income to the ATO, although there are several deductions you can claim to offset this income. And you will need to register for GST and pay a proportion of your earning to the ATO to cover this. This is currently being challenged in the courts, but until such time as a resolution is found, you will need to make payments.

Lastly, income from Uber, or any sole trading business, is not eligible to have the Work Bonus applied. Therefore, you cannot claim the additional income exemption of $250 each fortnight.

You may wish to consult a tax accountant before making any decisions, and it would be prudent to confirm your individual circumstances with Centrelink.

Other articles:

Income and asset tests

Work Bonus

Join YourLifeChoices today
and get this free eBook!

By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

Written by Debbie McTaggart


Total Comments: 3
  1. 0

    Why would you have to register for GST. Isn’t that only necessary if you have a turnover $75000 a year?

  2. 0

    Taxi drivers don’t earn $75000.00 a year but pay gst because it is in the metered priced regulated by govt.If you use Uber the drivers don’t pay tax or gst are unregulated but drivers will be caught eventually.This is why we pay more taxes.So go ahead and be an accessory to tax evasion. Macca

  3. 0

    Just following this way and easily to find showing this icon in desktop in window 10 PC where is desktop computer windows 10 how do i find my computer in windows 10.



continue reading

Food and Recipes

Silky Vegan Chocolate Mousse

You may be sceptical about using tofu in a dessert, but I think you'll be pleasantly surprised. This silky chocolate...


What is deep sleep and how can you get more of it?

You may have heard that adults need between seven and nine hours of sleep each night. But the quality of...

Technology News

Why you may have to buy a new device whether you want to or not

Michael Cowling, CQUniversity Australia We've probably all been there. We buy some new smart gadget and when we plug it...


Poll reveals support for vaccinations and compulsory masks

Fewer Australians say they would take a coronavirus vaccination now than at the outset of the pandemic, but a big...


How to avoid being tracked online

The internet is most likely monitoring every move you make through your computer or device and, unless you know the...


Aussies want Morrison to refute health misinformation

Australians are fed up with the growing spread of misinformation related to the COVID-19 pandemic and want Prime Minister Scott...


The diet that can put type 2 diabetes into remission

Consuming fewer carbohydrates can potentially put type 2 diabetes into remission. An international study involving Australia's CSIRO found that strict...


CHOICE tips to take charge of 2021

Have you made a resolution to be better with money this year? After 2020, many of us could probably do...