If you want to work as a courier driver in Australia as an independent contractor, you need an ABN. This is not optional. Without one, the company you drive for is legally required to withhold 47% of your earnings before paying you, under the Tax Administration Act 1953 — even if you have done all the work correctly.
What is an ABN?
An Australian Business Number (ABN) is an 11-digit number that identifies your business with the Australian Tax Office (ATO). When you work as a courier driver on a contract basis, you are running a business — even if it is just you and your car.
How to Get an ABN (Free, Takes 10 Minutes)
- Go to abr.gov.au
- Click “Apply for an ABN”
- Select your business structure (usually “Sole Trader” if it is just you)
- Complete the form with your personal details and the nature of your work (select “transport” or “delivery services”)
- Most applications are approved instantly online
There is no fee. The ATO does not charge for an ABN.
Do I Need to Register for GST?
Not necessarily. You are only required to register for GST if your annual turnover from all sources is $75,000 or more. Most part-time delivery drivers are below this threshold and do not need to register.
If you do register for GST, you will charge GST on top of your delivery rate and claim back the GST on your business expenses (fuel, insurance). The net effect depends on your situation — speak to an accountant if you are unsure.
What Happens at Tax Time?
As a sole trader with an ABN, you declare your courier income in your personal tax return as business income. You can deduct legitimate business expenses against this income, including:
- Vehicle running costs (using the ATO’s 5,000km flat rate method or the logbook method)
- Mobile phone (the work-use portion)
- Insurance premiums for the vehicle (the work-use portion)
Keep records of all income you receive (your RCTIs or invoices) and expenses throughout the year.
ABN and Recipient-Created Tax Invoices (RCTIs)
Most courier operators issue RCTIs — they create the tax invoice on your behalf rather than you having to invoice them each week. This is a legitimate and common arrangement. It simplifies your admin but you still need an ABN for it to work.
Your ABN will be recorded on every RCTI issued to you.
Sign up as a courier driver in Sydney — flexible hours, weekly pay, your own vehicle.