Ride sourcing – Claiming car expenses

Ride sourcing – Claiming car expenses

Those who participate in ride-sourcing (i.e., Uber, GoCatch) as a driver can access a number of tax deductions come tax time.

You may be able to claim expenses such as:

  • Parking fees
  • Road tolls
  • Mobile phone costs
  • Fees or commissions charged the facilitator
  • Other expenses – to the extent that they relate to work-related travel.

Under the logbook method (the business-use percentage of car expenses) include:

  • Petrol
  • Depreciation of your car
  • General vehicle running costs such as insurance, car rego and repairs
  • Maintenance.

Expenses you cannot claim include:

  • Fines, such as parking and speeding fines
  • Fuel tax credits
  • The cost of getting and maintaining a standard driving licence
  • Costs of a capital nature, such as car purchase price
  • Personal or private expenses, such as the private use of a car used for ride-sourcing activities.

If you use your car for both personal and work-related use, you will need to apportion your car expenses appropriately. If the owner of the car is a spouse or de-facto partner, you can still claim deductions for the car as it is considered a joint asset.

You may be eligible for a range of concessions, i.e., simpler depreciation – instant asset write-off if you are a small business entity in an income year. Be sure to review your eligibility each year.

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