A Tax Guide for Bus Drivers
This guide provides a general overview of tax deductions and other financial considerations for you as a bus driver, based on information from the Australian Taxation Office (ATO) and our professional expertise.
To claim a deduction for any work-related expense, it must meet the following three conditions:
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You must have spent the money yourself and were not reimbursed.
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The expense must directly relate to you earning your income.
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You must have a record, like a receipt, to prove the expense.
A key rule is that you can only claim the work-related portion of any expense.
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The ATO's myDeductions tool in their app is an excellent way to keep track of your receipts and expenses throughout the year. We also recommend a shared Google Drive, OneDrive, or Dropbox folder. You can easily export your records and email them to us, or bring them to your appointment.
This is one of the most common areas of confusion. You cannot claim the cost of normal trips between your home and your usual workplace (like your main depot). This is considered private travel, even if you work split shifts or outside normal hours.
However, you can claim the cost of using a car you own when you drive:
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Directly between separate jobs on the same day (e.g., from your bus depot to a second job).
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To and from an alternative workplace for the same employer (e.g., travelling from your usual depot to another depot).
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From your home directly to an alternative workplace (e.g., you are instructed to start your shift at a different depot and you drive there from home).
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Cents per Kilometre Method: You can claim a set rate for each business kilometre, up to a maximum of 5,000 km per car per year. This rate covers all your running costs. You need to be able to show how you worked out your business kilometres.
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Logbook Method: This method allows you to claim the business-use percentage of all your actual car running costs, including fuel, insurance, servicing, and depreciation. You must keep a logbook for a continuous 12-week period to determine your work-related percentage.
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You can claim travel expenses if you are required to travel away from your home overnight in the course of your duties. A perfect example is driving a two-day bus tour where you sleep away from home.
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These expenses can include meals, accommodation, and incidental expenses you incur.
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Important: Receiving a travel allowance from your employer does not automatically entitle you to a deduction. You must still be able to show you were away overnight, you spent the money yourself, and the travel directly related to your job.
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You cannot claim any expense that was paid for or reimbursed by your employer.
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You cannot claim the cost of conventional clothing, even if your employer requires you to wear it. This includes items like plain black pants or standard collared shirts.
You can claim the cost of buying, hiring, repairing, or cleaning clothing if it is:
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Protective: Clothing with features to protect you from injury or illness at work, such as steel-capped boots or hi-vis vests.
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Compulsory Uniform: Clothing you are explicitly required to wear that is distinctive to your organisation, such as an embroidered shirt with your employer's logo.
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Non-compulsory Registered Uniform: A uniform that your employer has registered with the Register of Approved Occupational Clothing.
For laundry, you can claim the specific cost of washing these work items. If your claim is under $150, the ATO accepts $1 per load for work-only items as a reasonable basis for calculation.
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This is a critical area with specific rules:
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Driver's Licence: You cannot claim the cost of getting or renewing your standard driver's licence, as this is a private expense. However, you can claim the additional cost to get or renew a special licence or condition required for your role, such as a heavy vehicle permit.
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Compulsory Assessments: You cannot claim pre-employment medicals or assessments you take to get a job. You can claim the cost of compulsory assessments and medical examinations you require to keep your current employment, such as a working with children check.
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You can claim the work-related portion of other expenses that relate to your employment, including:
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Sunglasses and sunscreen if your work exposes you to the sun for prolonged periods.
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Overtime meals that you buy and eat, but only if your employer paid you an overtime meal allowance under an industrial law, award, or agreement.
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Cleaning products for the bus, if you are required to keep the bus clean and the products are not supplied by your employer.
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Diaries and logbooks used to record work-related information, such as student behaviour or vehicle damage.
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Phone and internet costs (the work-related portion, which you must have records to show).
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Union and professional association fees.
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You can call us on (08) 6117 9219, or send us an email at reception@aevumaccounting.com.au
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