Do You Need an ABN to Deliver with DoorDash?

The current wave of services apps has created an industry where opportunities for extra income can be easily accessible. With apps like DoorDash, no interview is required. Like signing up for any app, you simply fill in the forms and you are ready to go. However, not knowing what documents you need or how to obtain them can be a deterrence for many people interested in earning some extra cash. This article breaks down what an ABN is and how to acquire one so you can start your career at DoorDash.

Table of Contents

What is DoorDash?

DoorDash is a relatively new app that organises food delivery from a restaurant straight to the user’s door, like Uber Eats. Originally starting in America, the app is beginning to take off in Australia as well. The delivery drivers are referred to as dashers and act as independent contractors

Dashers will have offers to pick up food for customers on the app. The offers will show the distance they have to travel and clearly indicate how much that job will earn them. Once they accept, all they have to do is pick up the food from the restaurant and drop it off to the customer. The ability to pick and choose what offers to accept gives dashers a great deal of flexibility a lot of jobs do not offer. A dasher can choose their own hours and decide what offers pay enough for them to pursue.

What is an ABN?

An ABN is an Australian Business Number registered with the Australian Business Register (ABR). It consists of 11 digits and allows a business to interact with various government agencies and departments. Once you have an ABN, the public will be able to find information about your business through the ABR. If there are some details you would prefer to keep private, you can request to have them hidden from the public. For the request to be approved, however, the information must create a risk to the personal safety of someone associated with the business. Otherwise, exceptional circumstances must exist.

For more information on ABNs, check out one of Lawpath’s helpful articles.

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Need an Australian Business Number to start a casual job? We've got you covered.

Do you need an ABN to be a Dasher?

Yes, to deliver with DoorDash, you need an ABN.

Dashers are not employees of DoorDash, they work as independent contractors. As an independent contractor, you are required to have an ABN. This means you get to be your own boss, but it also means you are responsible for your own tax and super. This includes reporting and paying GST if you reach a certain threshold. If your GST turnover is $75,000 or more, you will have met that threshold. The Australian Tax Office (ATO) has helpful guides for calculating GST turnover. Furthermore, you will not be covered as an employee. If you need to take time off because you are sick or injured, you will not be entitled to paid leave. As a result, it is best to put money aside ahead of time in case you need to take time off.

How to apply for an ABN?

Applications for ABNs are generally processed through the ABR. For a fast and easy application, it is best to have the following information prepared:

  • Proof of your identity
  • Your Tax File Number
  • When you expect to start delivering for Doordash
  • Your Business Contact Details

After an ABN in a hurry? If you use Lawpath to register your ABN, you will typically receive it within 24 hours.

Conclusion

Delivering for DoorDash means you get to be your own boss. You do not work as an employee of DoorDash but as an independent contractor. Being your own boss, however, comes with some responsibilities. You need to have an ABN and register your business with the ABR to deliver with DoorDash. In addition, having an ABN also means you are responsible for your taxes and super. As a result, keep track of your turnover to know if you need to register and pay GST. Once you are all set up as a dasher, however, you get a lot of freedom. You get to choose your own work hours and what jobs are worth your time.

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