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:
- Depreciation of your car
- General vehicle running costs such as insurance, car rego and repairs
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.