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Tax Implications For A Taxi Driver

Taxi drivers are considered as self-employed. If you’re a taxi driver and you’re not employed by someone else, you must:

  • register for GST – regardless of how much you earn
  • only claim GST credits related to your work
  • lodge business activity statements (BAS) monthly or quarterly (you can’t choose to lodge annually)
  • pay your net GST

Record-keeping requirements

You must keep proper records of all transactions, including:

  • total kilometres travelled (including travel without passengers)
  • number of shifts worked
  • total income (including cash, credit card and Cabcharge)
  • expenses (for example, petrol and car washes).

Your records should include documents such as invoices and receipts to verify your income and expenses. You must keep these records for five years after they were prepared, obtained or the transaction was completed, whichever is later.

 

Available deductions

Rent or Lease Payments

Any money you pay to lease your car or rent it from a fleet operator is a deduction in your tax return.

Licence
Any licence fees you pay to operate your taxi are tax deductible. This may include the taxi licence fee and also other fees to have a special driver’s licence.

Memberships
If you are a member of an organisation or union that is associated with Taxi driving, then you may claim this as a tax deduction.

Credit Card Processing Fees
Any fees and charges that you incur when processing a credit card are tax deductible.

Supplies

You can deduct the cost of any supplies you use in your taxi service. If you have special forms or equipment you use in your cab, these are business expenses. Deduct them and keep receipts to back up your claim.

 

If you have any enquiry, please contact our Business Mantra experts. You can call us on (08)9242 3555 or email us at info@businessmantra.com.au.

 

 

Source: ATO

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