Train Drivers Tax Return and Deduction Checklist

Keeping trains on the tracks and running on time is important work. But if you’re a train driver, it’s also important to make sure your taxes are in order. Annually, you are expected to file your tax return with the ATO.

While most people strive to keep up with the tax deadline, there are those who end up missing out on a good number of deductions. If you are train driver, there are significant deductions that you may not be aware of, which could save you a lot of money. 

In this guide, we will provide a comprehensive checklist for your salaries and allowances, as well as the deductions you can claim, legitimately. 

Train Drivers’ Salaries and Allowances

First things first; you will need an income statement to be able to lodge your tax return. If you’re an employee, this will come in the form of a group certificate from your employer. 

If you’re a contractor, on the other hand, you will likely have received a PAYG payment summary – individual non-business from each client you have worked for over the course of the financial year.

Your income statement will show your total taxable income, which is the sum of your salaries, wages, allowances, tips, commissions and other forms of earnings. It’s important to check that the amount is correct before you lodge your tax return as any mistakes could result in a delay or overpayment.

Deductions You Can Claim

In the course of your official duty, there are certain expenses that you may have incurred which can be deducted from your taxable income. 

The most common deduction that train drivers can make is the work-related car expenses. If you use your own car to travel between workplaces or to transport tools or equipment, you can claim a percentage of the running costs. 

Other deductions may include:

  • License, Permit, and Certificate Renewals: You can claim the cost of renewing your driver’s license and other professional licenses and permits. 
  • Work-Related Clothing and Laundry: You can claim for the cost of laundry if you are required to wear a uniform to work or if you have to purchase protective clothing. 
  • Union Fees: You can claim the amount you have paid in union fees. 
  • Tools and Equipment: You can claim the cost of tools and equipment that you have purchased for work. 
  • Home Office Expenses: If you are required to work from home, you can claim a percentage of your power, gas, water, and internet expenses. 
  • Self-Education Expenses: If you have undertaken any self-education courses that are relevant to your work, you can claim the cost of the course, as well as associated expenses such as textbooks, stationery, and travel. 

This is not an exhaustive list of deductions; there may be other deductions that you can claim depending on your individual circumstances

What Deductions Are Not Claimable?

There are also a number of deductions that train drivers cannot claim. These include:

  • The cost of travel to and from work 
  • The cost of buying a new car 
  • Depreciation of tools and equipment 
  • Home office expenses if you are not required to work from home 
  • The cost of self-education if the course is not relevant to your work. 

How to Claim Tax Deductions

One of the most important things to help in claiming tax deductions is keeping receipts of your expenses. You should hold on to receipts, invoices, and records of any payments you have made for work-related expenses. 

It is also a good idea to keep a logbook if you are claiming car expenses. This will help you to keep track of the number of kilometres you have travelled for work.

Accurate Business & Accounting Services is always ready and available to help you with your tax returns and the relevant deductions. Talk to one of our experts today!