As an Uber driver, there are a range of tax deductions you can claim. My Uber Income app makes it easier to manage your deductions and calculate your BAS and tax return. Download it for free clicking here.
Here are some work-related expenses that become tax-deductible when you drive for Uber.
Claiming a deduction for business use of your car
In the Logbook method, you can claim all expenses that relate to the operation of the car, at your percentage of business use, as established from your logbook.
The logbook must have been kept for a minimum 12 week period and you must record the date and mileage of your car at the start and end of each shift. You should start your logbook when you leave home and stop when you arrive back home or switch off the app.
Claiming work related tax deductions
Deductions that can be claimed 100% as an Uber expense:
- commissions, licensing or service fees paid to Uber
- costs of becoming an Uber driver – once you’ve started the official application process, such as medical and police checks, application fees etc. Costs incurred before becoming an Uber driver, or before the application process starts (such as attending information nights) are not deductible
- passenger costs such as water and mints
- tolls – you can claim tolls while on trips and tolls in between trips as well
- work-related parking expenses – keep receipts and add them up, or claim up to $200 a year for your parking charges less than $10 each
- bank fees – only if you maintain a separate account for your Uber work
- tax agent/accountants fee
Deductions that can be claimed as per your car business use portion:
- fuel for the car
- vehicle licensing or registration
- costs of cleaning – for specific passenger incidents you can claim the whole amount, but general cleaning costs, such as car washes, must have your logbook percentage applied
- servicing and repairing the vehicle
- depreciation on the purchase price of your car – if you own your car
- interest – if you have a loan on your car
- rental/hire/lease fees – if you lease/rent your car
- equipment and accessories – dashcam, seat covers, mobile phone holder, rubber mats
Deductions that can be claimed as per Uber use portion:
- mobile phone bills
- safety equipment (such as hi-vis vests) and sunglasses – if you use them when not driving as well you must specify a percentage of Uber use
- Spotify, Pandora or Apple subscription fees
- home office expenses – stationery, computer expenses, a percentage of your home internet bill
Work related tax deductions cannot be claimed for
- costs of a normal drivers licence
- fines (parking, speeding, etc)
- clothing other than safety clothing
- meals, drinks, etc purchased whilst on shift
Claiming instant asset write-off
As an Uber driver, you have access to all the tax concessions available to small businesses, including the instant asset write-off for capital assets. You can immediately deduct the cost of equipment you use in your business, including items such as computers and motor vehicles provided:
- the cost is less than the threshold advised by the ATO
- the asset was first used or installed ready for use in the income year you are claiming it in
See the “How to calculate Uber car depreciation” for more info on instant write-off.