ABN Nature of Activity for Uber Drivers in Australia: What To Put

If you’re setting up a small business that earns income through Uber - whether that’s rideshare, food delivery, or even managing a small fleet - you’ll need an Australian Business Number (ABN). A common sticking point in the ABN application is the “nature of activity” question. What exactly should you write there to correctly reflect what you do?

Getting this right matters. Your “nature of activity” description helps government agencies understand your business for tax and compliance purposes. It can also affect how the Australian Taxation Office (ATO) views your GST position and other obligations.

In this guide, we’ll explain how to describe your Uber-related business activity clearly and accurately, what else you need to register (like GST), and how to choose the right business structure. We’ll also share a step-by-step way to complete your ABN application with confidence - so you can focus on growing your business with the right legal foundations in place.

What Is The “Nature Of Activity” On An ABN Application?

When you apply for an ABN, you’ll be asked to describe the main business activity your enterprise carries on. This isn’t a marketing slogan - it’s a short, plain-English description of the core service you provide to earn income.

The description should:

• Be specific enough to indicate your main service (e.g. “ride-sourcing passenger transport” rather than just “transport”),
• Reflect how you actually earn revenue (e.g. per trip deliveries or passenger fares), and
• Match your day-to-day activity, not your long-term aspirations.

If you do multiple activities, list the one that generates most of your income. If income is split fairly evenly, choose the activity you expect to be your primary focus in the next 12 months.

If you’re unsure whether you’re “carrying on a business” as required for an ABN (rather than a hobby), it’s worth reading more about what defines a business activity in Australia before you apply.

Suggested “Nature Of Activity” Descriptions For Uber Businesses

Your wording doesn’t need to be long or complicated. It should be short, clear and accurate. Here are examples you can adapt based on what you do with Uber.

1) Uber Rideshare (Passenger Transport)

• “Ride-sourcing passenger transport services (Uber)”
• “Private hire passenger transport via ride-sourcing platform”

These phrases signal that you provide passenger transport as an independent contractor using a ride-sourcing platform. This aligns with how the ATO categorises ride-sourcing.

2) Uber Eats (Food Delivery)

• “On-demand food delivery services (Uber Eats)”
• “Courier services for food and beverages via digital platform”

This wording indicates you deliver meals ordered through an app. If you also deliver groceries or parcels, you can broaden it to “on-demand delivery services via platform”.

3) Multi-Platform Delivery (Uber Eats + Others)

• “On-demand delivery services via digital platforms”
• “Courier and delivery services (multi-platform)”

If you deliver through Uber Eats and other apps, use a description that covers all, so you don’t need to change it each time you add a platform.

4) Small Fleet Or Vehicle Management For Uber Drivers

• “Vehicle hire and management services for ride-sourcing contractors”
• “Rideshare vehicle leasing and driver support services”

If your revenue comes from leasing vehicles to Uber drivers and managing compliance, this makes your role clear (it’s not passenger transport or delivery - it’s supply and management).

5) Operations Or Administration Support For Uber Contractors

• “Administrative and support services for ride-sourcing and delivery contractors”
• “Back-office services for platform-based drivers”

This fits if you’re building a business that provides scheduling, compliance or bookkeeping support to contractors who work on Uber.

Tip: Keep the brand reference optional. You can include “(Uber)” or “(Uber Eats)” for clarity, but it’s not mandatory. The key is describing the service, not promoting a brand.

Do You Need An ABN, GST And Other Registrations?

Beyond the “nature of activity” field, you’ll want to make sure your registrations line up with your actual obligations. Here are the main questions we’re asked by small businesses operating with Uber.

Do I Need An ABN To Work With Uber?

Yes - as an independent contractor providing services through a platform, you’re generally carrying on an enterprise and should have an ABN. Working without an ABN can lead to withholding by payers and other headaches. If you’re still weighing it up, this overview of the advantages and disadvantages of having an ABN is helpful.

If you’ve already applied and want to confirm details, here’s how to check if an ABN is active quickly. And if you’re tempted to operate without one, read why it’s risky to run a business without an ABN.

Do I Need To Register For GST?

Rideshare businesses (passenger transport via ride-sourcing) must register for Goods and Services Tax (GST) from the first dollar earned - there’s no $75,000 threshold in that case. For delivery-only services (like some Uber Eats arrangements), your GST position depends on how the ATO classifies your activity and your turnover. The rules can change, so it’s best to check current guidance or speak with your tax adviser.

We’ve covered the basics in our guide to GST requirements for Uber drivers and a companion piece on Uber Eats driver requirements. If you diversify to other platforms, the compliance for similar models (like DoorDash) is discussed here: DoorDash and ABN requirements.

What About A Business Name?

If you trade under your own personal name (e.g. “Jordan Tan”), you don’t need a separate business name. If you trade under another name (e.g. “Citywide Deliveries”), you should register that business name. Remember, a business name is not a separate legal entity - it’s just the trading name. If you’re weighing up structure options, we explain the difference in business name vs company name.

Sole Trader, Partnership Or Company: Which Structure Works Best?

Choosing a structure affects your tax, liability and growth options. Many Uber contractors start as sole traders for simplicity, then switch to a company if they grow (for example, by adding other drivers or offering vehicle leasing).

• Sole Trader: Easiest to set up and run. You control the business and report income in your individual tax return. The trade-off is personal liability - there’s no separation between you and the business for debts.
• Partnership: Similar to sole trader but with two or more people running the business together. Partners share profits and responsibilities. Make sure you have a partnership agreement if you go down this path.
• Company: A separate legal entity that can offer limited liability and may be advantageous for growth, bringing in co-owners, or managing higher risk (e.g. a fleet). It’s more complex and has ongoing reporting requirements, but it can be worth it as you scale.

If you incorporate, you’ll need core governance documents like a Company Constitution and potentially a Shareholders Agreement if there’s more than one owner. Getting the structure right from the start helps you avoid expensive changes later.

Contracts, Compliance And Risk When You Operate With Uber

Working with Uber is different from being an employee - you’re running a business that supplies services through a platform. With that comes responsibility for your own contracts, compliance and risk management.

Your Relationship With The Platform

You’ll agree to platform terms that govern fees, ratings, suspensions and disputes. Read them closely and understand how changes can affect your revenue or access. If you subcontract work (for example, you use other drivers in your fleet), make sure your own agreements reflect your platform obligations so there are no gaps.

Consumer And Fair Trading Laws

Even as a contractor, you must comply with the Australian Consumer Law (ACL) when dealing with customers (e.g. fairness, representations, safety). If you offer add-on services (like delivery of your own goods), ensure your advertising and refunds align with the ACL. For a refresher on what counts as misleading or deceptive conduct, we break down the ACL’s section 18 in plain English.

Employment Law (If You Hire)

If you expand beyond yourself - for example by hiring admin staff or engaging other drivers - you’ll need proper agreements and to follow Fair Work rules. Use the right Employment Contract for employees or a suitable contractor agreement for genuine contractors, and keep policies in place for safety and conduct.

Insurance And Safety

Check what insurance is required in your state or territory (e.g. compulsory third party, rideshare endorsements). Consider business insurance for public liability, and if you’re a company employing staff, workers compensation and other mandatory covers. Your insurance broker can advise on the right mix for your risk profile.

Step-By-Step: Completing The ABN Application For An Uber Business

Here’s a practical checklist for completing the ABN application when your business operates with Uber.

1. Confirm You’re Carrying On An Enterprise: You’re providing services for a fee, on a commercial basis. If in doubt, refresh on what defines a business activity.
2. Choose Your Structure: Start as a sole trader if you’re testing the waters. Consider a company if you plan to scale or take on more risk. If you incorporate, put in place governance documents like a Shareholders Agreement.
3. Apply For Your ABN: Use the online application and have your TFN, contact details and start date ready. Keep your answers consistent with how you actually operate.
4. Enter Your “Nature Of Activity” Clearly: Use a plain description that matches your main service, such as:
   • “Ride-sourcing passenger transport services (Uber)”
   • “On-demand food delivery services (Uber Eats)”
   • “On-demand delivery services via digital platforms” (for multi-platform)
   • “Rideshare vehicle leasing and driver support services” (for fleet/management)
5. Register For GST (If Required): Ride-sourcing requires GST registration from your first dollar. Delivery-only businesses should assess current rules and their turnover. Our guide on GST for Uber drivers explains the basics.
6. Consider A Business Name: If you’ll trade as something other than your personal name, register a business name. Remember, this is separate from a company. If you’re choosing between the two, see business name vs company name.
7. Keep Records In Order: Set up bookkeeping from day one to track income, expenses, GST and BAS. Accurate records make tax time simpler and support your compliance if the ATO asks questions.
8. Review Licences And Insurance: Make sure you hold any rideshare authorisations, vehicle inspections and insurance required where you operate.

Once your ABN is granted, hang onto the confirmation. If you ever need to verify it later, you can quickly check if it’s active and ensure your public details are correct.

When Should You Update Your “Nature Of Activity”?

Businesses evolve. If you change your main activity (for example, you move from food delivery to passenger transport, or you pivot to vehicle leasing), update your ABN details so they match your current operations.

Other triggers for an update include:

• Adding or removing platforms that materially change your services,
• Changing structure (e.g. switching from sole trader to a company), and
• Crossing the GST threshold (if you weren’t previously required to be registered).

Keeping your ABN details current helps avoid compliance issues and ensures you receive the right notices from government agencies.

Practical Tips To Set Your Uber Business Up For Success

• Be consistent across the board: The “nature of activity” you write should match your platform profile, invoices and business records.
• Think one step ahead: If you know you’ll expand to multiple platforms soon, use a description that covers “on-demand delivery via platforms” rather than a single brand.
• Plan for GST from day one: If you provide ride-sourcing, build GST into your pricing and cash flow to avoid surprises at BAS time.
• Document relationships properly: If you hire help or sub-contract, use clear contracts that align with your platform obligations and Fair Work laws.
• Protect your brand as you grow: If you trade under a distinctive name, consider registering your business name and, if appropriate, your trade marks as you scale.

Key Takeaways

• The “nature of activity” on your ABN application should be a short, accurate description of your main service (e.g. ride-sourcing passenger transport or on-demand food delivery).
• Rideshare businesses usually must register for GST from the first dollar; delivery-only businesses should assess current rules and turnover and stay across ATO guidance.
• Start with a simple structure (often sole trader), then consider a company if you plan to scale or take on more risk or co-owners.
• If you trade under a name other than your own, register a business name; remember that a business name isn’t a separate legal entity.
• As you grow (hiring staff, subcontracting, or managing vehicles), put proper contracts and compliance processes in place to manage risk.
• Keep your ABN details up to date - especially if your main activity changes, you add platforms, or you change structure.

If you’d like a consultation on setting up your Uber-based business - including the right “nature of activity,” structure, contracts and compliance - you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.