Page 8 - drive a2b july 2020 web

10 common

tax deductions

for taxi and hire car drivers

Annual income tax returns can be lodged from 1 July 2020 for the 2019-20
financial year (i.e. 1 July 2019 to 30 June 2020).

Given the recent downturn in demand for taxi services, it is important for all
taxi and hire car drivers to be aware of what deductions they may be entitled
to claim for tax.

To help drivers with their tax return this year, Airtax has created this essential
checklist of 10 tax deductions.

1. Car running costs logbook, it is really important to do deducted in full under the instant
so because it generally increases asset write-off rules if the purchase
Taxi and hire car drivers who own deductions for car running costs. price was less than $30,000.
their own car are able to claim
some of the running costs. 2. Car purchase If the car was purchased for your
business between 12 March 2020
Running costs can include fuel, and 30 June 2020, the instant asset
insurance, registration, roadworthy Taxi and hire car drivers who write-off is limited to the car limit
certificates, repairs, maintenance, operate a small business and of $57,581 for the 2019–20 income
servicing, cleaning, detailing, purchased a car to use as a taxi or tax year.
washing, depreciation, interest on hire car during the 2020 financial
car loans, and lease or hire fees. year (i.e. 1 July 2019 to 30 June
2020) may be able to claim the cost 3. Industry fees and
The amount that can be deducted of the car as a tax deduction. charges
will depend on the number of If the car was purchased between Taxi and hire car drivers pay several
kilometres travelled for work and 1 July 2019 and 11 March 2020, fees and charges which can be
whether a logbook record is kept. then the cost of the car may be deducted for tax. This can include
Whilst it is not necessary to keep a

8 DRIVE A2B magazine · www.drivea2b.com.au · July 2020