Renting a car in Australia used to mean one thing: a day rate at an airport counter. In 2026 it covers four distinct markets — traditional rental fleets, street-based car share, subscription plans, and a peer-to-peer (P2P) segment where ordinary owners rent out their own vehicles.
This guide covers both sides of that market: what you can rent and roughly what it costs, the rules that differ by state, how insurance and paperwork work, and how to rent out your own car — including listing it for rent here on MotorLoop.
- US$112bn
- Projected global car rental revenue in 2026 (Statista)
- US$135.75bn
- Projected global revenue by 2030 (Statista)
- 360,000
- Active listings reported by Turo worldwide, March 2024
- 20,000
- Owners sharing vans on Camplify (platform figure)
The four ways Australians rent cars
| Model | What it is | Who offers it in Australia |
|---|---|---|
| Traditional rental | A company hires out its own fleet, usually by the day or week | Avis, Budget, Hertz, Thrifty, Europcar, Sixt, Enterprise and independents |
| Car share | Company-owned cars parked on streets, booked by the hour or day | GoGet, Popcar, Flexicar |
| Peer-to-peer (P2P) | Private owners rent out their own vehicles through a platform | Turo, DriveMyCar, Camplify (caravans), evee (EVs) |
| Subscription | A monthly fee bundling the car, rego, insurance and servicing | Carly, SIXT+ and others |
The biggest recent shift was in P2P. Uber Carshare — formerly Car Next Door, which Uber acquired in January 2022 — shut down in September 2024, citing rising costs and operational challenges. Uber still rents cars in Australia, but as an aggregator selling traditional rental-fleet inventory. That left Turo (operating here since late 2022) and DriveMyCar — which describes itself as Australia's first peer-to-peer car rental service — as the main P2P options for cars, with Camplify covering caravans, campervans and motorhomes.
What you can rent
| Category | Where you typically find it | Indicative renter pricing |
|---|---|---|
| Economy and compact cars | Every channel | Around $32–$70 a day (Melbourne CBD examples, September 2026) |
| Medium cars and SUVs | Every channel | Around $45–$99 a day |
| Utes, vans, people movers | Car share, traditional, P2P | From about $11.90 an hour plus per-km on car share |
| Luxury and prestige cars | P2P, specialist operators | Premium daily rates, higher bonds |
| Electric vehicles | evee (EV-only), Turo, some fleets | Similar to prestige petrol cars |
| Campervans, motorhomes, caravans | Camplify (P2P), JUCY, Britz, Maui | Camplify reports an average first booking value of $880 (platform figure) |
| Trucks and moving vans | Truck-rental arms of the majors, hire centres | Daily hire |
| Rideshare-ready cars | Specialist weekly rental | Weekly pricing aimed at gig drivers |
Renter requirements are set by rental companies rather than by law: typically a minimum age of 21 with a full licence held for at least a year, and a young-driver surcharge for under-25s. Temporary visitors can usually rent on a valid overseas licence, provided it is in English or accompanied by a translation or international driving permit.
What a renter usually needs
- Age
- 21+ (surcharge under 25 with most suppliers)
- Licence
- Full licence held 1+ year; overseas licence OK for visitors if in English or translated
- Payment
- Credit card in the main driver's name for the bond or pre-authorisation
- Check before signing
- Kilometre limits, fuel policy, tolls, extra-driver and one-way fees
State by state: what actually differs
Most of the legal frame for renting is national — contract law and the Australian Consumer Law. What genuinely changes across borders is the compulsory third party (CTP) injury cover built into registration, plus a handful of practical differences:
| State or territory | CTP injury cover | Market notes |
|---|---|---|
| NSW | "Green slip" from a choice of private insurers | Deep rental market centred on Sydney; a long P2P history (Car Next Door was founded there) |
| Victoria | TAC charge in rego, single government scheme | Strong Melbourne market; DriveMyCar partnered with RACV |
| Queensland | MAIC, choice of private insurers | Big tourist-rental market (Brisbane, Cairns, Gold Coast) and campervan demand |
| Western Australia | ICWA, single government scheme | Perth market; long-distance one-way rentals common |
| South Australia | Choice of private insurers | Adelaide market plus wine-region tourism |
| Tasmania | MAIB, single government scheme | High tourist rental per head; thinner P2P supply |
| ACT | MAI, choice of private insurers | Car-share operates in Canberra |
| Northern Territory | MAC, single government scheme | 4WD and camper tourism; unsealed-road restrictions are common in contracts |
DriveMyCar's owner guidance warns that, depending on the state where the vehicle is registered, you may need to amend the registration to a "commercial" or "business" class — and that the requirements differ from state to state. Confirm with your state registration authority and CTP insurer before your first hire.
Overseas-licence rules also differ by state for people who have moved here. Temporary visitors can generally drive on a valid overseas licence, but residents must convert to a local licence within a set window — six months in Victoria, for example (VicRoads). Check your own state's rule before booking a rental as a new resident.
The laws that matter
Self-drive rental is not rideshare
Point-to-point transport — a driver carrying passengers for a fare, like taxis and rideshare — is licensed by each state. Handing someone the keys to drive themselves is a rental contract, not a hire-car service, and no Australian state requires you to hold a special licence or permit to rent out your own car. The compliance work sits in insurance, registration and tax instead. The line to watch: chauffeured hire (a wedding car with a driver, say) IS point-to-point and needs the relevant state operator accreditation.
Consumer law
Rental platforms and professional operators are bound by the Australian Consumer Law, including consumer guarantees and the rules against misleading conduct. A casual private arrangement between two individuals carries fewer of those protections, which is part of why the platform layer — a formal agreement, verification and insurance — matters.
Tax: rental income is income
The ATO's sharing-economy guidance is explicit (ATO: peer-to-peer car sharing deductions):
- Declare all rental income in your tax return.
- Claim only expenses directly related to the rental activity, and keep records — the ATO accepts platform trip data as evidence.
- Platform membership and availability fees are generally fully deductible. Ownership costs (depreciation, interest, rego, insurance, servicing, cleaning, fuel where you pay it) must be apportioned between personal and income-producing use, using either the cents-per-kilometre method (capped at 5,000 income-producing km) or a logbook.
If you are carrying on an enterprise and your GST turnover across all your businesses reaches $75,000, you need an ABN and GST registration, charge GST, and can claim GST credits (ATO: how GST applies when sharing assets).
Insurance: the three layers
A standard private comprehensive car policy typically excludes use "for hire or reward". Rent your car out on your everyday policy and you may have no cover at all during a rental — neither for damage to your car nor for your own liability. Sorting rental-period cover is the step to take before you list anywhere.
Layer 1 — CTP (compulsory). Covers injuries to people, never property. It comes with registration and stays the owner's responsibility; the registration-class question in the state table above is where it can bite.
Layer 2 — damage and theft during the rental. Each platform answers this differently:
| Platform | Rental-period cover (as published by the platform) |
|---|---|
| DriveMyCar | Its motor fleet policy covers accident and theft during rentals, with $30 million third-party property cover, and roadside assistance |
| Turo | Hosts choose one of three earnings plans trading take-rate for protection; all include $20 million legal liability cover, with damage and theft protection varying by plan |
| Camplify | Damage protection is mandatory for hire — either the platform-aligned MyWay Protect product or your own comprehensive policy that explicitly covers rentals |
Layer 3 — the renter's damage liability. Traditional rentals and car share include basic damage cover with a high excess (often several thousand dollars); renters can reduce it with a daily excess-reduction product or cheaper third-party excess cover. Common exclusions to read for: tyres, windscreens, roof and underbody damage, unsealed roads and water crossings.
Paperwork
Renting: driver's licence, a credit card in the main driver's name for the bond, and photo ID or a passport for overseas visitors. The rental agreement sets kilometre limits, fuel policy, tolls and extra-driver or one-way fees, and nominates who pays infringements. The condition report — with dated photos at pickup and return — is what settles damage disputes, so treat it as the most important page of the lot.
Renting your car out: proof of ownership, current registration and CTP, clear photos and an honest description for the listing, and the platform's formal rental agreement. At every handover, complete the inspection report and take dated photos; the renter should return the car clean and refuelled, as you supplied it. Keep registration, servicing and tyres current between hires.
Tax: platform income statements, expense receipts, and logbook or kilometre records; an ABN and BAS if you are GST-registered.
How to rent out your car
List it on MotorLoop
MotorLoop has a dedicated Rental listing type. List your car for rent and it appears on the cars-for-rent hub alongside other rental listings. MotorLoop is a marketplace for the listing itself: enquiries come to you, and the rental agreement, insurance and handover stay between you and the renter. That gives you full control over your terms and pricing — and it makes sorting rental-period insurance (see the warning above) your responsibility before the first booking.
Or list on a rental platform
- Turo — the global P2P operator, in Australia since late 2022. You set price and availability, pick a protection plan, and the platform handles guest verification, payment and claims.
- DriveMyCar — specialises in longer rentals of 7 to 365 days. Cars must be under 15 years old, under 150,000 km and under $75,000 in value. Renters are ID- and credit-checked, a security deposit is collected, and its fleet policy covers the rental period. Over $8 million paid out to owners (platform figure).
- Camplify — for caravans, campervans, motorhomes and camper trailers. Over 20,000 owners and $500 million paid out to its community worldwide (platform figures). Commission on completed bookings (its owner page advertises 16%).
| Feature | MotorLoop | Turo | DriveMyCar | Camplify |
|---|---|---|---|---|
| What you can list | Any vehicle, cars included | Cars | Cars <15 yrs, <150,000 km, <$75k | Caravans and motorhomes |
| Rental-period insurance bundled | No | Yes | Yes | Yes |
| Typical rental length | You set the terms | Hours to months | 7–365 days | Multi-day trips |
| How you pay the platform | Standard listing terms | Share of trip price, varies by plan | Built into the renter's price | Commission per booking |
| Renter vetting | Enquiries via your inbox | ID verification | ID plus credit check | ID verification |
The process, whichever route you take
Renting out your car, start to finish
Check insurance and registration
Confirm your policy covers hire use (or use a platform that bundles rental-period cover), and ask your state registration authority whether your registration class needs to change.
Choose where to list
A marketplace like MotorLoop for full control over terms and pricing, or a rental platform for bundled insurance, renter vetting and payment handling.
Create the listing
Good photos, an honest description, a realistic price for your area, and clear availability. Cars with quality photos attract more enquiries.
Vet every booking
Respond promptly, review the renter's history where the platform provides it, and approve only hires you are comfortable with.
Document every handover
Complete an inspection report and take dated photos at pickup and return. Supply the car clean and fuelled, and expect the same back.
Keep records and declare the income
Save platform statements and receipts, keep kilometre records or a logbook, and declare the income in your tax return.
What you can earn
Published figures give a frame, but read them as marketing rather than medians:
| Source | Published figure |
|---|---|
| DriveMyCar | $350–$1,750 a month; its worked example has a $24,000 car earning about $840 a month if rented for a full year |
| Camplify | $880 average first booking; over $40,000 a year for its best owners (platform figures) |
| Turo | Hosts keep a share of the trip price set by their protection plan; per-model estimates on its earnings calculator |
A realistic example for a mid-range car on a P2P platform: eight rental days a month at $50 a day is $400 gross; after a 20–30% platform and insurance share, about $280–320 before costs and tax.
The honest deductions come from the ATO's own worked example: an owner earning $6,000 in a year claimed $5,115 in deductions — the income-producing share of depreciation, interest, registration, insurance, servicing, cleaning and fuel, plus platform fees. Net revenue is never the headline daily rate: subtract platform fees, cleaning between hires, extra wear, the business share of ownership costs, and income tax.
This is general information, not legal, insurance or tax advice. Rules differ by state and change over time, and platform terms change too — check the primary sources and your own insurer before you list or sign anything.
Sources:
- ATO: peer-to-peer car sharing deductions
- ATO: how GST applies when sharing assets
- VicRoads: driving with an overseas licence
- Statista Market Insights: car rentals worldwide
Related reading
- Car insurance and CTP in Australia: what's compulsory and what's not
CTP, third party property and comprehensive cover explained — agreed versus market value, what an excess is, and what happens when a car changes hands.
- How much does it really cost to sell a car privately in Australia?
An itemised, state-aware breakdown of what a private car sale actually costs — the inspection, the transfer, the duty, the presentation, and who pays which.
FAQs
Do I need a special licence to rent out my car in Australia?
No. Renting your car out self-drive is a rental arrangement, not rideshare, and no Australian state requires a special licence or permit for it. What you do need is appropriate insurance, current registration and CTP, and — depending on your state — possibly a change of registration class. Chauffeur-driven hire is different: that is point-to-point transport and is state-licensed.
Will my normal car insurance cover me if I rent my car out?
Usually not. Standard private comprehensive policies typically exclude use for hire or reward, so a rental could leave you with no cover at all during the hire period. Use a platform that bundles rental-period cover, or arrange a policy that explicitly covers rentals, before your first booking.
How much can I earn renting out my car?
Platform-published figures range from $350–$1,750 a month for cars on DriveMyCar, to $880 for an average first booking on Camplify, and over $40,000 a year for Camplify's best owners. Treat these as marketing figures: your actual result depends on your car, location, availability, price and how often it is booked — and costs, fees and tax come out of the headline rate.
Do I have to pay tax on car rental income?
Yes. The ATO requires you to declare all income from renting out your car. You can claim expenses directly related to the rental activity — platform fees in full, plus the income-producing share of ownership costs using cents-per-kilometre or a logbook. If your GST turnover across all your enterprises reaches $75,000, you also need an ABN and GST registration.
What is the minimum age to rent a car in Australia?
Rental companies set their own rules rather than law: typically 21 with a full licence held for at least a year, and a young-driver surcharge for under-25s. Some car-share services run dedicated under-25 plans.
Can I list my car for rent on MotorLoop?
Yes. MotorLoop has a Rental listing type: list your car for rent and it appears on the cars-for-rent hub. MotorLoop provides the listing and the enquiry path; the rental agreement, insurance and handover arrangements stay between you and the renter.