Yes. DoorDash engages Dashers as independent contractors, not employees, so you are running your own enterprise and you need an ABN before you start. GST is the part people get wrong: rideshare driving requires GST registration from the first dollar, but food delivery does not. As a Dasher you register for GST only once your turnover reaches $75,000.
Why DoorDash asks for an ABN
Dashers are not on a payroll. There is no employer withholding tax for you, no payslip and no superannuation. You are a contractor supplying a delivery service to DoorDash, and that is an enterprise in the ATO's language.
That has three practical consequences from your first shift:
- You need an ABN to be paid properly as a contractor.
- Nobody is putting tax aside for you. Your Dasher income is business income and goes in your tax return, so set money aside as you earn.
- Your expenses matter. Fuel, vehicle running costs, phone and data, insulated bags: the work-related proportion is generally deductible, but only if you have kept records.
The vehicle makes no difference. Car, scooter, bike or on foot, the contractor relationship is the same and so is the ABN requirement.
Do I need to register for GST for DoorDash?
Not straight away, and this is where the rideshare comparison misleads people.
GST law treats taxi and limousine travel differently from everything else. Anyone carrying passengers for a fare has to register for GST regardless of turnover, and that captures Uber, DiDi and Ola drivers from their first trip. business.gov.au states it plainly: you must register if "you provide taxi or limousine travel (including ride-sourcing services like Uber or DiDi) regardless of your GST turnover".
Delivering food is not carrying passengers. So DoorDash sits under the ordinary rule: register once your GST turnover reaches $75,000 in a 12-month period, or once you expect it to.
| What you do | ABN | GST |
|---|---|---|
| Dashing for DoorDash | Yes, from the start | Only from $75,000 turnover |
| Delivering for Uber Eats | Yes, from the start | Only from $75,000 turnover |
| Driving passengers (Uber, DiDi, Ola) | Yes, from the start | Yes, from the first dollar |
| Both: passengers and delivery | Yes | Yes, from the first dollar, and it covers your delivery income too |
That last row is the one that catches people. If you dash during the week and drive passengers on weekends, the passenger work drags you into GST, and once you are registered it applies across everything you earn under that ABN.
What happens if you dash without one
Two things, and the second is the expensive one.
First, sign-up stalls. DoorDash asks for an ABN as part of onboarding, so an application without one tends to sit unfinished.
Second, no-ABN withholding. When a business pays another business that has not quoted an ABN, and the payment is more than $75 excluding GST, the payer is required to withhold 47% of it and send that to the ATO. You get it back eventually through your tax return, but "eventually" means after 30 June, and in the meantime you have lost almost half of every payment to a timing problem you could have avoided in five minutes.
Setting up, in order
- Get the ABN first. It is the piece DoorDash asks for, and everything else waits on it.
- Describe the activity accurately on the application. "Food delivery services" or similar. A vague description is a common reason an application gets held for manual review instead of issuing the same day.
- Leave GST off unless you need it. Registering early means lodging activity statements you did not have to lodge. If you also drive passengers, that is the case where you add it now.
- Open a separate account for the Dasher income, and move a percentage across as you go.
- Start the logbook and the receipts on day one, not in June.
Doing it yourself, or having it done
The application is the same either way and most people can complete it. What we do for the $99 is check the entitlement and the activity description before it goes in, lodge it as a registered tax agent, and answer the phone if the ATO comes back with a question. If you also drive passengers, we add GST to the same application so you are not doing it twice.
Common questions
Do I need an ABN for DoorDash in Australia?
Yes. DoorDash engages Dashers as independent contractors rather than employees, which means you are carrying on an enterprise and need an ABN. It is also part of what DoorDash asks for during sign-up.
Do DoorDash drivers have to register for GST?
Only once your GST turnover reaches $75,000 in a 12-month period. Food delivery is not taxi or limousine travel, so the rule that forces rideshare drivers to register from the first dollar does not apply to dashing.
I dash and I drive for Uber. Which GST rule applies?
The rideshare one. Carrying passengers for a fare requires GST registration regardless of turnover, and once you are registered it applies to everything you earn under that ABN, including your DoorDash income.
Can I use my existing ABN for DoorDash?
Yes, as long as it is active and held by you as an individual. You do not need a separate ABN for each activity you run as a sole trader. Check its status on ABN Lookup first, because an ABN cancelled for inactivity will not work.
What happens if I deliver without an ABN?
A business paying you without an ABN is required to withhold 47% of any payment over $75 excluding GST. You recover it through your tax return after the end of the financial year, so it is a cash-flow problem rather than a permanent loss, but it is an avoidable one.
How much does it cost to get an ABN for DoorDash?
Applying yourself at the Australian Business Register is free. Our agent-lodged application is $99 including GST and tax deductible, which covers checking your entitlement and activity description before lodgement, same-day lodgement, and phone support if the ATO queries anything.
Need an ABN before your first shift? Five minutes, $99.
Agent-checked and lodged the same day. Free help on 1800 546 526.