Uber drivers in Australia are like other employees, freelancers, and entrepreneurs: they must pay taxes. There isn’t a way to avoid this requirement, even when you’re self-employed. Most Uber drivers want to take advantage of the tax deductions available to hold on to as much of their earnings as possible.
What Can an Uber Driver Claim on Taxes in Australia?
There are two main deductions people can claim as an Uber driver in Australia:
- Business Expenses
- Self-Employment Expenses
Let’s take a look at each of these, shall we?
Business Expenses are those things that are directly related to your work as an Uber driver. These expenses were incurred when conducting your business, and they will help reduce your taxable income. The Australian Taxation Office, or ATO, has an exhaustive list of deductible expenses on their website, which you can read about here.
Self-Employment Expenses are everything related to your work as an Uber driver that is not specifically deducted as a business expense. These include things like:
- Car expenses
- Gym and other health club expenses
- Bookkeeping and accounting
- Smartphone and data bills
If you have a work-related expense on the approved list, ask your Uber support team if they qualify for the deductions. Chances are, they do, or a similar cost will.
Can Uber Drivers Claim Fuel Expenses on Tax in Australia?
Absolutely! The ATO recommends you refuel your vehicle to go to the next job. So, if you refuel your car to get to the next job, you can claim that expense. If you refuel your vehicle when you return home, you cannot.
In some cases, you may have had to refuel your vehicle because there wasn’t one parked in your area, or you had to move your car for street sweeping. The ATO website says you can claim this expense if it was incurred for the sole purpose of earning income, and you cannot claim if it was incurred for any other purpose.
Can Uber Drivers Claim Car Insurance on Tax in Australia?
If your car insurance pays off a debt, such as a car loan, you cannot claim this expense. However, if your car insurance is solely to protect your car against loss, damage, or liability, then you can claim that expense. If you use a company car or vehicle, you cannot claim your car insurance as a self-employment expense.
Can Uber Drivers Claim Car Repairs on Tax in Australia?
You can claim the expense if your car repairs were due to an accident and not from normal wear and tear. You can also claim the fee if it was repaired to your vehicle to make it roadworthy. Car repairs that cannot be claimed include, but are not limited to, oil changes and cleaning.
Can Uber Drivers Claim Car Payments on Tax in Australia?
You can claim the interest portion of your car payments. For example, if your car payment is $300, and you only paid $200 in interest, you can claim the $200. On the subject of car payments, if you purchase a car with a loan and then trade it in for a new car, you can use the sale of your old car to offset the cost of your new vehicle. However, this only applies if you are paying down the debt.
As an Uber driver in Australia, you’re eligible to claim all sorts of tax deductions. You should always speak with a qualified accountant or tax adviser before claiming any deductions to ensure you’re taking the proper steps.
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