Essential Tax Tips for Delivery Drivers : Tax Tips for delivery drivers

Welcome to TAXABN, your trusted partner in navigating the complexities of tax returns in Australia. Whether you’re delivering food, parcels, or groceries, understanding your tax obligations is crucial. In this blog, we’ll cover key tax tips for delivery drivers to help you maximize your deductions and simplify your tax return process.

Common Tax Queries for Delivery Drivers

1. What expenses can I claim as a delivery driver?

As a delivery driver, you can claim a variety of work-related expenses such as:

• Fuel and oil
• Maintenance and repairs
• Vehicle insurance
• Registration
• Depreciation of your vehicle
• Tolls and parking fees

Always keep detailed records and receipts for all these expenses.

2. Can I claim a deduction for using my personal car for deliveries?

Yes, you can claim a deduction for using your personal car. There are two methods:

• Cents per kilometre method: You can claim up to 5,000 business kilometres per year at the ATO’s set rate (72 cents per kilometre for 2023-24).
• Logbook method: Track your vehicle expenses and usage to calculate the actual cost of using your car for work.

3. Do I need to pay tax on my delivery income?

Absolutely. All income earned from delivery work must be reported and is subject to tax. This includes payments from food delivery apps or other delivery services.

4. What records do I need to keep for my tax return?

Maintain comprehensive records of:

• All your income
• Work-related expenses
• Receipts
• A logbook if claiming actual vehicle expenses

5. Can I claim my phone bill as a work expense?

If you use your phone for work, you can claim a portion of your phone bill. Estimate the percentage of phone use that is work-related and claim that portion.

6. What if I use my car for both personal and work purposes?

You can only claim the work-related portion of your car expenses. Use a logbook to accurately track your work-related usage and calculate the deductible percentage.

7. Do I need to register for GST?

You need to register for GST if your annual turnover is $75,000 or more. Most delivery drivers do not reach this threshold, but keep an eye on your earnings to be sure. However if you are a taxi driver, you need to register for GST before starting the driving job.

8. How do I calculate the cents per kilometre deduction?

Multiply your total work-related kilometres (up to 5,000 km) by the cents per kilometre rate set by the ATO (72 cents per kilometre for 2023-24).

9. What other work-related expenses can I claim?

Other deductible expenses include:

• Work-related training
• Uniforms
• Safety equipment
• Some costs associated with working from home

10. Do I need an ABN (Australian Business Number)?

If you are working as an independent contractor, yes, you need an ABN. This allows you to invoice companies and claim GST if applicable.

11. How do I lodge my tax return?

You can lodge your tax return online through mygov or best is to use register tax agent so that they can make sure you are doing the right things, otherwise you might be in trouble if ATO audit you.

12. What happens if I don’t report all my income?

Failing to report all your income can result in penalties and interest charges from the ATO. Always report your full income to avoid issues.

13. Can I claim food and drink expenses?

Generally, no. Food and drink expenses are considered personal and not deductible unless you are required to travel overnight for work.

14. Is there a specific tax rate for delivery drivers?

No, delivery drivers are taxed at the same rates as other individuals. Your tax rate depends on your total taxable income.

15. What if I make a mistake on my tax return?

If you realize you’ve made a mistake after lodging your return, you can amend. Always remember us, we are ready to help you for all your taxation queries and needs.