Tax deductions for taxi drivers

Yes, in most cases. Taxi, limousine and ride-sourcing drivers who are not employees must be registered for GST regardless of turnover — the usual $75,000 threshold does not apply — and report on a monthly or quarterly activity statement. A driver who qualifies can instead pay GST by quarterly instalments and report the actual figures once a year, so check which option applies to you. The ATO treats a driver as an employee when they keep none of the takings and are paid a set amount for driving; in that case it is the employer who registers. Check which describes you with the ATO or a registered tax agent. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.

All of the takings, whichever way they arrive: cash, card, Cabcharge or other account payments, tolls and extras, tips and any WorkCover payments. The shift rent or lease you pay the operator and your running costs come off as expenses, but the takings themselves are counted in full first. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.

Generally yes. Shift rent, bailment or lease payments to the owner or operator are a cost of earning your takings. Keep the statement for each payment, and note that where a payment is made on to someone else on your behalf, the record should still show what it was for. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.

That method is for a car you own, lease or hold under hire purchase, meaning built to carry under one tonne and fewer than nine passengers (a minibus or larger vehicle is claimed at actual cost instead), and covers a claim of up to 5,000 business kilometres per car per income year, a total a full-time cab driver can pass in a few months of driving. If you drive an operator’s cab on shift rent, you claim the costs you actually pay rather than a rate per kilometre. The limit is on what you claim, not on how far you drive: if you claim no more than 5,000 business kilometres for that car in the income year, you can use the method even if you travelled more. If you claim more than 5,000, the logbook method must cover the whole claim for that car, and the two methods cannot be combined. A logbook runs for a continuous 12 weeks and stays valid for five years if your use stays much the same. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.

Total kilometres including empty travel, the shifts you worked, your total takings from every payment type, and your expenses with the invoices or receipts behind them. The ATO’s advice is to keep records for five years after you lodge the return they support. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.

Most cab drivers are not employees: they pay the owner a lease or shift amount and keep the takings. A driver who keeps none of the takings and is paid a fixed amount for driving is generally treated as an employee, whose employer handles GST and withholding. The ATO’s employee-or-contractor guidance sets out the test, and it is worth confirming your own arrangement. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.