It’s not just about long miles and beautiful scenery when you’re on the road. It’s also crucial to maximise your hard-earned income during tax season. As a truck driver in Australia, you have to pay for gas, keep your truck in excellent shape, find a place to stay, and more.
There is a chance that many of these costs will help you instead of hurt you. If you know how to save on taxes in 2025, your daily work will turn into a gold mine of tax returns. Let’s look at some ideas that will help you keep more of your money.
Why would truck drivers require a tax strategy?
The Australian Taxation Office (ATO) lets truck drivers deduct many expenses that are linked to their jobs, but they don’t always take advantage of these breaks. Knowing what you can claim will help you get a bigger tax return, regardless of what kind of business you run (sole trader, contractor, owner-operator, etc.). If you follow the right steps, you could get thousands of dollars back in your bank account.
But how do you begin? Let’s break it down here.
The costs of a car are determined by its mileage, repairs, and wear and tear.
Since your truck is your office, you can reduce the costs of running it. This is what needs to be there:
- Keep track of how many litres of diesel or gasoline you buy: oil and fuel. To keep excellent records, keep your papers or use FuelTax apps.
- Both unexpected repairs and routine maintenance, such as oil changes, brakes, and tyres, qualify for tax deductions.
- Over time, your car will lose value. Use the ATO’s method to claim this depreciation every year. If you can’t figure it out, consult a financial advisor in your area.
Understanding the terms of your ‘truck financing‘ agreement can influence your depreciation claims and overall tax deductions. Use a logbook to keep track of the business use of your car. Keep track of your miles for at least 12 weeks to find out how much of your travel is for work.
When you stay longer, you can save money on travel and lodging.
For long drives, you may have to pay for a place to stay, like a hotel, hostel, or even a campsite. This is how these costs could be claimed:
- Whether you stay in a motel on the side of the road or a campground, the cost is tax-deductible if you need it for work.
- Meals: If you’re not at home, you should claim a flat rate for daily meals (check the ATO’s current limit).
- There are also costs for things like washing, showers at truck stops, and even gym memberships at hotels.
Tip: Keep receipts for all of your travel-related expenses. No cost is too small.
Home Office Tax Breaks: Do you work from your garage? Take it!
You can deduct some of your home costs if you use a space in it for work, like an office in the garage or an extra room for paperwork. For example:
- Interest on a mortgage or rent
- Services (like internet, power, and gas) and insurance
To figure out how much you can subtract, compare the area you used for work and personal use. Ensure that you primarily use your area for work purposes.
Tools, gear, and licences: Take away the basic gear.
You can deduct basic gear, such as tough boots or high-tech GPS systems, from your taxes.
- Clothes and tools that qualify include safety gear, work outfits, and even sunglasses.
- Fees for driving licences, heavy vehicle licences, and registration are all part of licences and permits.
- Improvements to technology: If it’s less than $300, technology used in the cab, like ELDs or satellite phones, can be removed right away.
Always keep user guides and records to prove who owns something and how it was used.
Fees for professionals: Charges and insurance protect your wallet.
Two deductions that are often missed:
- The fees for public liability, workers’ compensation, or professional indemnity insurance can be written off.
- Costs to become a member: The fees you pay to join professional groups (like the Road Transport Association) or unions (like the Australian Trucker’s Association) can be claimed.
Allowances for cash expenses and wear and tear on equipment are available.
Find the best property value.
Tools, trucks, and cars lose value over time. To lower your tax bill, report this decline in value.
- By 2025, the federal budget could make the quick asset write-off programme last longer. This implies that small businesses, including sole traders, can fully write off approved assets. Use the ATO website to stay up to date.
- If you sell something, you might need to change your loss claims.
In more complicated cases, a private wealth advisor can help you get the most out of your asset management plan.
Training and Education: Kill and Save
If courses like advanced driver training, first aid, or business management that are related to your current job are tax-deductible, then courses that help you get better at what you do are also tax-deductible. Keep your proof of payment and records.
Personal use of cars and phones for work
When you need to make a quick trip, do you use your own car or your work phone? Get a share of their costs reimbursed.
- If you use your phone for work, take a reasonable amount off your bill—say, 30%.
- To keep track of your car’s costs, use the same logbook method you used for your truck.
In case you’re not sure, see a professional.
Tax laws change every year, so getting the most out of your benefits requires ongoing knowledge. A tax agent or financial advisors Melbourne who are licensed can:
- Please list any charges you missed.
- Check that the ATO’s rules are being followed to avoid checks.
- Help you deal with tough situations like “private vs. business use.”
Get the most tax breaks possible. After 2025
Plan for the long term by making plans like:
- Up to ATO limits, putting money from a salary into super lower taxed income.
- Employers who work part-time can lower their tax bill by averaging their income.
Last Thoughts on 2025
- Write it all down: Use PocketSmith or Excel to keep track of your spending.
- Keep the lodge on time. The last day to send tax forms to the ATO is October 31, 2025.
- Keep your morals high: personal costs should never be thought of as work costs.
To put it simply, drive carefully to save more.
Maximising your return isn’t just about cutting costs; it’s also about building a stable financial future. Tax season can be a profitable stop on your road trip if you take advantage of all the qualified deductions and pay for professional help, like that of a private wealth planner.
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