Uhhh, tax deduction for Uber? Yep, just going to tax return, thanks, Jokes aside, you should be making sure you deduct everything you can for rideshare and Uber tax deductions. What can rideshare and Uber drivers claim on tax? Here are some Uber driver tax deductions in Australia. Don’t leave anything. If you save every little bit, and deduct everything you’re entitled to, the return can be massive. What are the details though, and what are you taxed against?
When it comes down to it, there are three main criteria that qualifies an expense for tax deduction, which is calculated against your income:
- You must have spent the money and not have been reimbursed
- It must be related to your job
- You must have a record to prove it
However, this in itself can be hard to understand. What constitutes an expense as “related” to your job? Here is what defines your taxable income, and a list of rideshare and Uber tax deductions in Australia.
What Is Your Taxable Income
Your taxable rideshare/uber partner income is money generated from your employer or your work. Your taxable income also includes:
- PAYG summaries
- Pensions and government allowances
- Interest earned (banks etc)
- Rental property income
- Business income
- Other income earned (capital gains etc)
Tax Deductions for Ride Sharing Drivers
- Buying any uniforms and clothes for your rideshare or Uber Australia uniform
- The cost of laundry for clothes/uniforms that are worn for ATO ride sharing purposes
- Protective clothing items that you use for your rideshare work (masks, hair nets, gloves, sunscreen if working in sunny areas etc)
- Purchase of equipment and supplies used for your rideshare work (mints, water bottles, seat covers etc) up to $300
- Mobile phone tax deduction expenses
- Vehicle upkeep (registration, licensing, insurance etc)
- Depreciation expense of equipment and tools over $300
- The repair and/or upkeep of rideshare equipment including car expenses ATO
- Interest generated from loans relating to work activities
- Self-education and courses that will improve your rideshare work
- License and certification that you will need for your rideshare work
- Work union fees/other similar organisations
- Subscriptions and magazines relating to ridesharing for Uber tax claims
- Travel expenses if work related (conferences, moving between jobs, and going to pick-up clients)
Protective Clothing For Ridesharing
The most obvious piece of clothing that you will use as protection for your ridesharing job is a face mask. Not only can you claim your own, but if you buy multiple for the people getting into your vehicle, you can claim it as one of your motor vehicle expenses ATO.
Equipment and Supplies Tax Deductions
You can claim any expense that you incur in paying for supplies like mints, water bottles and amenities. Your car also counts as your equipment, so any car depreciation is tax deductible.
This will be your main tax deduction. Because you are driving your personal vehicle for your job as a rideshare driver, you can claim all the expenses you incur doing it. How many kilometres can you claim on tax without receipts? The answer isn’t always simple, so you should see a tax professional.
Joining A Union
Joining a union is a popular thing for rideshare drivers. Can you claim union fees back on tax? The answer is yes.
Licenses and Trainings
You claim any license or training they get that will help with your work, or that you are required to get from your employer. You can’t claim the initial buy-in cost, but you can claim any cost it takes to renew it. For more information, see a professional.
- Car expenses and general wear if your car use is work related (estimated Km or a logbook with all expense items)
- Travel expenses for your work (flights, taxis and trains etc)
- Accommodation needed on work reasons (including meals)
- Phone bills for work
- Work related computing
- Working from home costs
- Tax return fees dating to the year previous
- Rental expense (if you are renting)
- Charity + gift deductions (including gifts to clients tax deductible ATO)
- Client entertainment expenses tax deductible ATO
- Sun protection (if you have to work outside)
Maximising Your Tax Return With An Online Tax Service
There will be more rideshare tax benefits and tax deductions that aren’t on this list. Tax deductions are not only industry specific, but also change from individual to individual. So, what can you claim on your tax return?
The best way to claim the most you can is with a tax agent like One Click Life. We have made the process simple with 5 easy steps.
The more you deduct, the less tax you pay and the more money you can spend on yourself. Clearly, you will want to deduct the most you can, and the sure-fire way to do that is with a tax agent or accountant. If you can claim your tax agent/tax return fee back on tax, why wouldn’t you use one to minimise your tax?
One Click Life fast offers online tax returns at your fingertips in an easy-to-use platform run by industry professionals.
Taxes, health insurance, and wills can be time-consuming and tedious. Our app allows you to be able to do this fuss-free, giving you a simple way to organise, track and manage all of your life admin in one place.
Let One Click Life take care of your tax return, and life’s essential tasks so you can spend more time doing the things you love.
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