Income & Work-Related Deductions For Truck Drivers

Income & Work Related Deductions For Truck Drivers (1)

Taxes for truck drivers in Australia are quite complex and depends on what sort of truck you drive.

If you earn your income as an employee truck driver, you are entitled to income and work related deductions that need to be reported.

Firstly, you are categorised as:

  • Local Driver: If you usually travel within a city or town and reaches home every day after completing work.
  • Short-haul Driver: If you usually travel between the cities and towns, but returns home after completing the work.
  • Long-haul Driver: If you are away for work from home, takes long rest break at work only and visit home occasionally.

Salary & Allowance On Income

When calculating your deductions, make sure you include all the income you receive as a truck driver during the income year in your tax return including:

  • Salary and wages: Add salary, wages and any bonuses you receive.
  • Allowances: Add all allowances on income statement or payment summary.

Prepare your income statement or payment summary that shows your salary, wages and allowances for the income year. Don’t include any type of reimbursement.

Though all allowances you receive from your employer are considered as a source or type of income, you can’t always claim a deduction for it. In case, an allowance is applicable for deduction, the deducted amount is not usually the same as the allowance received.

Allowances Not On Your Income Statement/ Payment Summary

Some allowances might not be listed by your company on your payment summary or income statement. For example: Travel and overtime meal reimbursements. These allowances are listed on your paystubs.

If the allowance is not included on your payment summary or income statement and you:

  1. Spent the entire amount on deductible expenses:
    • You cannot claim any deductions for these costs.
    • You don’t include it as income in your tax return
  2. Spent more than your allowance:
    • You can’t claim any deductions for these expenses
    • You must include the allowance as income on your tax return

Reimbursements Are Not Considered an Allowance

The payment is considered a reimbursement if your company pays you the precise amount for the costs you incur. A reimbursement is not regarded as an allowance by the tax office.

If your employer pays back the costs you incur:

  • Don’t include the reimbursement as income on your tax return
  • You cannot write them off to claim a deduction

For truck drivers who want professional assistance for filing their tax and deductions, our tax accountants at KPG Taxation can help you out.

Consulting with KPG Taxation

Focus On Growing Your Business, Leave The Accounting On Us!

  • Income Tax : File your taxes & get the best claims & returns.
  • Accountancy : Hire expert accountants to manage your transactions.
  • Bookkeeping : Let us handle your record books and expense reports.
  • Business Advisory : From company set-up to payroll, we handle it all.