Felix · Richify's AI CFO
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Everything Australian Amazon Flex drivers need for tax: ABN, deductions (vehicle, phone, equipment), GST rules, tax return lodgement, and exactly how much tax you'll pay.
Last updated: June 2026·Source: ATO, Amazon Flex AU
On $40,000 of Flex blocks as your only income you'd owe roughly $3,713 before deductions — about $71 a week, after the low income tax offset and including the Medicare levy — and this guide shows you the ABN step, the two vehicle methods, and how to lodge.
It depends on your total taxable income (Flex plus any other income) after deductions. For 2025-26: $0–$18,200 = 0%; $18,201–$45,000 = 16% on the amount over $18,200; $45,001–$135,000 = $4,288 + 30% over $45,000; $135,001–$190,000 = $31,288 + 37% over $135,000; $190,001+ = $51,638 + 45% over $190,000. Add the 2% Medicare levy, which is nil below $28,011 and phases in at 10c per dollar to $35,013. A driver whose only income is $40,000 of Flex earnings pays roughly $2,913 income tax (after the $575 low income tax offset) + $800 Medicare = about $3,713, or $71/week — and less after claiming vehicle and phone deductions.
ABN required
Yes — free to get
GST threshold
$75K (not rideshare)
Cents per km
88c (2024-25)
Tax return due
October 31
Amazon Flex pays you as an independent contractor for delivery blocks, not as an employee. No tax is withheld — you receive your full block earnings and pay income tax yourself at tax time (or via quarterly PAYG instalments if the ATO issues you an instalment notice).
Your taxable income = total block payments minus legitimate business deductions (vehicle, phone, equipment). Because Flex routes can be long, vehicle running costs are usually the biggest deduction.
The ATO's data-matching program collects your annual earnings from delivery platforms, so leaving income off your return is detected automatically.
Vehicle — logbook method
12-week logbook → business % applied to all running costs. Best for drivers doing long Flex blocks and 25,000+ km/year.
Vehicle — cents per km
88c × business km (max 5,000 km) = up to $4,400/year. No logbook needed. Simpler for casual drivers.
Fuel & running costs
Via logbook %: fuel, servicing, tyres, registration, insurance, depreciation. (Don't double-claim with cents-per-km.)
Phone plan
Business-use % of your monthly plan. Keep a 4-week diary of work vs personal use.
Hand trolley / equipment
Trolley, sack truck, crates or bags used to move parcels during blocks.
Hi-vis & safety gear
Hi-vis vest, gloves, and any protective equipment used for deliveries.
Parking & tolls
Parking and toll costs incurred during a delivery block (not your commute to the depot).
Phone mount
Full cost ($15–$80) if used exclusively while delivering.
Income protection insurance
Full premium if the policy covers your delivery income and is held outside super.
Accountant/tax agent fees
Fully deductible in the year paid.
Estimates for Amazon Flex as your only income source, before deductions, including 2% Medicare levy:
| Amazon Flex income | Income tax | Total (incl. Medicare) | Weekly burden |
|---|---|---|---|
| $20,000 | $0 | $0 | $0 |
| $30,000 | $1,188 | $1,387 | $27 |
| $40,000 | $2,913 | $3,713 | $71 |
| $50,000 | $5,538 | $6,538 | $126 |
| $60,000 | $8,688 | $9,888 | $190 |
| $80,000 | $14,788 | $16,388 | $315 |
Based on ATO 2025-26 Stage 3 brackets. Actual tax is lower after deductions (vehicle etc.). Excludes HECS-HELP repayments if applicable.
Log each block, track deductible km and expenses, get a quarterly tax estimate, and chat with Felix — your AI CFO — about gig tax. Free on iOS and Android.
Get Richify freeABN (required)
Register free at abr.gov.au in ~10 minutes. Amazon Flex won't pay you without one. No ABN means 47% withholding on payments.
GST (conditional)
Register only if total gig income exceeds $75,000/year. Parcel delivery has no mandatory GST-from-$1 rule (that's rideshare only). Most Flex drivers never register.
Tax return
Lodge via myTax (due Oct 31) or a tax agent (due May 15). Report earnings under ‘Business income’ and claim deductions by category.
Super (your responsibility)
Amazon Flex pays zero super. Make personal contributions before June 30 to claim a deduction — taxed at 15% vs your marginal rate.
Enter your Flex earnings, deductions, and other income to get an ATO-aligned tax estimate including Medicare and HECS-HELP.
Gig tax calculator →Yes — all Amazon Flex earnings are fully taxable as business income. You deliver as an independent contractor, so no tax is withheld from your block payments.
The ATO receives data from delivery platforms under its data-matching program, so it already has a record of your earnings before you lodge. You must declare Amazon Flex income even if it's a side hustle on top of a regular PAYG job, and even if you only completed a few blocks.
Undeclared income attracts penalties of 25–75% of the shortfall plus interest.
Only if your total gig income across all platforms exceeds $75,000 in a 12-month period. Amazon Flex is a parcel-delivery service, so — unlike rideshare (Uber, DiDi) — there is no mandatory GST-from-$1 rule.
Most casual Flex drivers earn well under $75,000 and do not need to register. If you also drive rideshare, that work requires GST registration from the first dollar, and once registered you account for GST across all your gig income.
Two methods: (1) Cents per km — 88c per km (2024-25 ATO rate) for up to 5,000 business km, no logbook needed, best for part-time drivers. (2) Logbook method — a 12-consecutive-week logbook establishes your business-use percentage, which you apply to all running costs (fuel, insurance, registration, servicing, tyres, depreciation, loan interest). Flex blocks often cover long distances, so full-time drivers doing 25,000+ km/year usually get a much larger deduction from the logbook method.
Keep all receipts.
Beyond your vehicle: phone plan (business-use percentage, typically 50–80% for active drivers), phone mount, hand trolley or sack truck used for deliveries, hi-vis vest and safety gear, parking and toll costs incurred during delivery blocks, bags or crates used to organise parcels, and accountant/tax-agent fees. You cannot claim the handset purchase price as a contractor, ordinary clothing, fines, or the trip from home to the pickup depot (that first leg is private travel).
Yes — Amazon Flex requires an ABN to sign up and be paid. Registration is free and takes about 10 minutes at abr.gov.au.
Without an ABN, the platform is required to withhold 47% (the top marginal rate) under the 'no-ABN withholding' rule. You'd reclaim it at tax time, but it's a serious cash-flow hit, so get your ABN before your first block.
It depends on your total taxable income (Flex plus any other income) after deductions. For 2025-26: $0–$18,200 = 0%; $18,201–$45,000 = 16% on the amount over $18,200; $45,001–$135,000 = $4,288 + 30% over $45,000; $135,001–$190,000 = $31,288 + 37% over $135,000; $190,001+ = $51,638 + 45% over $190,000.
Add the 2% Medicare levy. A driver whose only income is $40,000 of Flex earnings pays roughly $2,913 income tax (after the $575 low income tax offset) + $800 Medicare = about $3,713, or $71/week — and less after claiming vehicle and phone deductions.
Set aside a percentage of your NET Flex income — gross blocks minus your deductible costs — not of what Amazon deposits. Using the totals in the tax table on this page, and assuming Flex is your only income: at $20,000 you owe nothing at all — the low income tax offset cancels the tax and no Medicare levy is due; at $40,000 about $3,713, roughly 9%; at $60,000 about $9,888, roughly 16%; at $80,000 about $16,388, roughly 20%.
So a driver treating Flex as side income under about $30,000 can usually get away with holding back 5-10%, while someone doing it full-time at $60,000-plus should be setting aside 20-25% to be safe. Two things push the real figure higher: any OTHER income you earn stacks on top and is taxed at your top marginal rate rather than from the tax-free threshold up, and Flex has no PAYG withholding at all, so the entire bill arrives in one lump.
Move the money to a separate account the day each block pays — spending gross earnings and meeting the bill in October is the single most common way gig drivers get into trouble with the ATO.
Amazon does not publish official Australian earnings figures, so treat any specific number — including these — as indicative rather than authoritative. Driver-facing guides in 2026 report standard blocks paying roughly $28-$35 an hour, with short-notice 'Instant Offer' blocks in high demand going higher, which works out around $84-$105 for a 3-hour block and $112-$140 for a 4-hour block.
The figure that actually matters for tax is much lower: those are GROSS numbers before you pay for fuel, tyres, servicing, insurance and depreciation out of your own pocket, and the same guides put net earnings nearer $22-$30 an hour once vehicle costs come out. That gap is exactly why the per-kilometre deduction on this page matters so much — at 88c/km for 2025-26 (91c from 1 July 2026), your kilometres are usually the largest single deduction you have, and claiming them properly is often worth more than any other line on your return.
Your own rate will vary by city, block type and how far you drive between drops.
No — as a contractor you get no employer super. You're responsible for your own retirement savings.
The tax-effective option is a personal concessional (before-tax) contribution, taxed at 15% inside super instead of your marginal rate. Lodge a 'Notice of intent to claim a deduction' with your fund before lodging your return.
Even modest regular contributions compound significantly over a working life.
Keep for 5 years from lodgement: your Amazon Flex earnings statements, fuel receipts or card statements, a vehicle logbook if using that method, registration/insurance/servicing records, phone invoices with a 4-week business-use diary, receipts for equipment (trolley, hi-vis, mount), and toll/parking records. The ATO actively audits gig workers and will request evidence — clear photos or scans are accepted.
