Bus drivers
Income, allowances and work-related deductions
This ATO guide covers what employee bus drivers need to declare and what they can deduct at tax time. It explains how allowances such as wet-weather or articulated bus payments are treated, and which driving, clothing, meal and training costs are deductible. You can only claim expenses you paid for yourself that relate directly to earning your income and that you can substantiate.
The three golden rules for a work-related deduction
• You spent the money yourself and were not reimbursed.
• The expense directly relates to earning your income.
• You have a record, usually a receipt, showing you incurred it.
Income and allowances to declare
• Declare all salary and wages, including cash and bonus payments, regardless of when you earned them.
• Declare allowances your employer reports on your income statement or payment summary.
• Declare compensation and insurance payments that replace wages, such as income protection benefits.
• Reimbursements aren't income and aren't declared.
• Allowances for unpleasant or special conditions, such as a driving in the rain allowance or an articulated bus allowance, are taxable but give no deduction.
• Overtime meal, laundry and special skills allowances (like first aid) can support a deduction if you actually incur the cost.
• Travel and overtime meal allowances shown only on your payslip need only be declared if you're claiming a deduction.
• Your deduction is based on what you spent, not on the allowance amount.
Deductions you can claim
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Claim driving between two separate jobs on the same day, between depots for the same employer, or from home to a depot that isn't your regular one, using the logbook or cents per kilometre method.
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Home to work trips can be claimed where essential bulky gear can only be carried by vehicle with no secure storage at work, or where you have no fixed workplace
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If keeping the bus clean is part of your duties, you can claim things like antibacterial spray, window cleaner and tissues that you buy yourself.
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Items with genuine protective features, such as steel-capped boots or fire-resistant clothing, are deductible
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Uniforms your employer strictly enforces, or registered non-compulsory uniforms, can be claimed if you pay for them.
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Claim $1 a load for washing eligible work clothing or 50c for mixed loads, plus actual repair and dry-cleaning costs.
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Safety glasses, goggles, anti-glare or photochromatic lenses and sunglasses worn to reduce risk at work are deductible for the work portion.
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Deductible for work-related use if you must spend long periods in the sun.
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Medical or fitness assessments your employer requires while you're already employed, such as an ongoing fitness to drive check, are deductible.
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Extra costs to obtain a work-required licence condition, such as a heavy vehicle permit, can be claimed.
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Deductible if you're the designated first aid person and your employer doesn't pay for the course.
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Claim a meal bought and eaten on overtime where you receive an overtime meal allowance under an award, shown separately and declared as income.
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Work items such as a GPS used for charter work cost $300 or less can be claimed outright; dearer items are claimed as decline in value. Repairs are also deductible.
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Deductible for work-related travel, such as driving from the depot to head office for training, but not at your regular workplace.
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Claim the work-related share of your own phone and internet costs; totals of $50 or less need no records.
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Logbooks, diaries and pens used for work, such as recording student behaviour or vehicle damage, are deductible.
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Course fees, textbooks, journals, stationery and study equipment are deductible where the study relates to your current driving role or is likely to increase your current income.
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Accommodation, meals and incidentals are deductible when a job such as a multi-day tour requires you to sleep away from home and you pay the costs.
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Membership fees are deductible; your income statement can be used as evidence if the amount is shown there.
Deductions you can’t claim
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Normal trips to your regular depot are private, including driving home and back during a split shift.
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Everyday items such as black pants and business shirts aren't deductible, even if your employer requires them and you only wear them at work.
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Items you buy for your own use, such as hand sanitiser, aren't deductible.
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Seat covers used in the bus are treated as a private expense.
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Medical exams or fitness to drive tests you take to get the job aren't deductible.
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Getting or renewing your licence is private, even though the job requires it.
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Speeding and parking fines can't be claimed, including fines received while driving the bus.
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Food and drink during your normal shift is private, even if you receive a meal allowance.
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Audio you play in the bus, even to relieve fatigue, isn't essential to earning income
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Ordinary corrective eyewear is a private expense
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Child care while you work and your children's education costs are private.
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Moving to a new work location isn't deductible
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Repayments on HELP, VSL, AASL, SFSS and similar loans, and HECS-HELP fees, aren't deductible.
Records to keep
• Keep written evidence — usually a receipt showing the supplier, amount, what you bought, and the purchase and document dates.
• Written evidence is needed for all claims if your total work-related claims exceed $300.
• Records must be in English for expenses incurred in Australia.
• Car claims need a valid logbook and evidence of expenses, or records showing how you worked out your work kilometres.
• Laundry claims of $150 or less don't need receipts, but you must show your calculation.
• Phone, data and internet claims over $50 need bills and evidence of work use.
• For overnight travel, keep evidence you were away and what you spent; overseas accommodation always needs receipts.
• Some expenses need a diary or similar record, and certain record-keeping exceptions apply.
• The myDeductions tool in the ATO app can track expenses and trips and be shared with a tax agent.
Where this comes from Australian Taxation Office, “Bus drivers”, ato.gov.au (last updated 11 May 2026). Source: https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/guides-for-occupations-and-industries/a-d/bus-drivers-income-and-work-related-deductions Summarised in plain English by Balanced Books For You. Based on Australian Taxation Office material licensed under a Creative Commons Attribution licence. Balanced Books For You is not the ATO and this document is not an ATO publication.
Prepared by Balanced Books For You from the ATO guide for bus drivers. General information only — it does not take your circumstances into account. Talk to us before you lodge if anything here is unclear.