Tax time can be challenging, especially for truck drivers with various work-related expenses. Understanding what you can and cannot claim is essential for maximising your tax refund. This guide outlines the key deductions available to truck drivers, ensuring you don’t miss out on any potential tax benefits.
General Principles for Claiming Deductions
To claim a deduction for work-related expenses:
Self-Incurred Costs: You must have spent the money yourself and not been reimbursed.
Direct Relationship: The expense must directly relate to earning your income.
Record Keeping: You must keep records to prove your expenses.
Only the work-related portion of an expense can be claimed. Personal expenses or portions of expenses unrelated to your job cannot be deducted.
Car Expenses
Non-Deductible:
Regular commutes between home and work, even if you work non-standard hours, are not deductible.
Deductible:
Trips between separate jobs in one day.
Travel between different workplaces for the same employer on the same day.
In limited circumstances, trips between home and work if you carry bulky tools or equipment necessary for your job.
Methods for Claiming:
Logbook Method: Keep a logbook to calculate the percentage of work-related use, along with written evidence of expenses.
Cents per Kilometre Method: Show how you calculated your work-related kilometres and ensure they were work-related.
If you claim using one of these methods, further deductions for the same car, such as servicing and insurance, cannot be claimed separately.
Travel Expenses
Deductible:
Travel expenses incurred while travelling away from home overnight in the course of performing your employment duties. This includes mandatory rest breaks, driving interstate, and returning to your home depot. Overnight travel must involve a rest break of sufficient length for you to sleep (around seven hours or more) and may involve taking up accommodation.
Non-Deductible:
Travel expenses paid for or reimbursed by your employer.
Accommodation expenses if you sleep in your truck or if your employer provides you with accommodation.
Receiving a travel allowance from your employer does not automatically entitle you to a deduction. You must still show that you were away overnight, spent the money, and the travel directly relates to earning your employment income.
Clothing and Laundry Expenses
Non-Deductible:
Conventional clothing (e.g., standard jeans, plain shirts, and plain pants), even if required by your employer.
Deductible:
Compulsory uniforms explicitly required by a workplace agreement or policy that is strictly enforced and distinctive to your organisation.
Protective clothing with features or functions that protect you from specific risks of injury or illness at work.
Expenses must not be reimbursed by your employer to claim a deduction.
Driver’s License
Non-Deductible:
Costs of getting or renewing your driver’s license, even if it is a condition of your employment.
Initial cost of getting a special license or condition on your license to get a job as a truck driver.
Deductible:
Additional costs to renew a special license or condition on your license necessary to perform your employment duties, such as a heavy vehicle permit.
Other Expenses
Non-Deductible:
Private expenses such as music subscriptions, childcare, fines, and the cost of food, drink, or snacks consumed during normal working hours.
Deductible:
Work-related portion of expenses such as sunglasses and sunscreen if prolonged periods of sun exposure are likely while performing your duties, and sleeping bags and pillows used during mandatory long rest breaks and sleep away from home for work.
Keeping Track of Your Deductions
Using a tool like the ATO’s myDeductions can simplify keeping track of your expenses and receipts throughout the year. This not only ensures you claim every possible deduction but also keeps you prepared in case of an audit.
Try TaxFox Today
By understanding and leveraging the specific deductions available to truck drivers, you can significantly enhance your tax refund. Ensure you keep accurate records and only claim the work-related portion of your expenses. For more detailed information or personalised advice, consult the ATO website or speak with a registered tax professional. For more detailed information, visit ATO Truck Driver Deductions.
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