Tax Deductions for Bus Drivers
If you're working as a bus drivers, there are 29 categories of work-related expenses you may be able to claim. Below you'll find every deduction the ATO lists for your occupation — in plain English.
This guide covers 29 deduction categories with 222+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
29
Specific Items
222
Income Types
0
Work-Related Deductions (29)
Amounts you do and don't include
- salary and wages, including cash or bonus payments
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
- You must include all the income you receive as a bus driver during the income year in your tax return, regardless of when you earn it, including:
- Don't include as income any reimbursements you receive.
- Your income statement or a payment summary will show your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, tools and equipment
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, driving in the rain
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Allowances not on your income statement or payment summary
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
Allowances and claiming a deduction
- The following table sets out allowances you may receive and when you can claim a deduction.
- Example of allowance type
- Deduction (Yes or No)
- Compensation for an aspect of your work that is unpleasant, special or dangerous or for industry peculiarities
- Driving in the rain allowance
- Articulated bus allowance
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- Overtime meal allowance
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Joel is a local bus driver. Joel drives an articulated bus on one of his 5 shifts each week.
- Joel's employer pays him $14.08 for each shift he drives the articulated bus. At the end of the income year, Joel's employer shows the total allowance of $2,027 on his income statement.
- Joel must include the allowance of $2,027 as income in his tax return.
- Joel can't claim a deduction because he doesn't incur any deductible expenses. The allowance compensates him for a special aspect of his job, it isn't to cover work-related expenses.
- Sanjay is an employee bus driver. His employer requires Sanjay to wear a compulsory uniform, which consists of a shirt and pants with his employer's logo on them, when he is on duty. The uniform is not provided by Sanjay's employer, but they pay him a uniform allowance of $500.
- During the income year, Sanjay buys 5 shirts and 5 pairs of pants at a cost of $350.
- Sanjay must declare the allowance of $500 as income in his tax return.
- Sanjay can claim a deduction of $350 as a deduction for the uniform items he buys.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for the expenses.
- Deductions for work expenses
- Record keeping for work expenses
Car expenses
- live a long way from your usual/regular workplace
- have to work outside normal business hours
- work split shifts (for example, driving between home and work during your split shift when you drive the school route).
- the tools or equipment are essential to perform your employment duties
- the tools or equipment are bulky, meaning that     because of the size and weight, they are awkward to transport
- they can only be transported conveniently using a motor vehicle
- there is no secure storage for such items at the workplace.
- directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, finishing your morning bus shift and travelling directly to your second job in administration
- to and from an alternative workplace for the same employer on the same day – for example, travelling between different depots for the same company or employer
- from home directly to an alternative workplace – for example, travelling from home to a depot other than your regular depot to fill in for another driver.
- own the car
- lease the car (directly from the finance company)
- hire the car under a purchase agreement (with the car dealership or a finance company).
- vehicle with a carrying capacity of one tonne or more (such as a ute)
- vehicle that can transport 9 passengers or more (such as a minibus).
Example: no deduction for home to work travel
- Kingsley is a coach driver. His employer keeps a basic tool kit on the bus to fix minor repairs. If the bus breaks down Kingsley calls the duty mechanic to come out and do the repairs.
- When Kingsley drives from his home to the depot, he carries his own large tool kit because he doesn't like the tools the employer provides. He takes his tool kit home with him each night after his shift because there is nowhere to store it securely at the depot.
- Even if the tools are bulky, Kingsley can't claim a deduction for the cost of his travel between his home and the depot. The large tool kit that Kingsley carries is not essential to perform his duties. It's his personal choice to carry his large tool kit because Kingsley is only required to do minor repairs and the tools needed to carry out those repairs are kept on the bus.
- The costs of travelling between Kingsley's home and the depot are private expenses.
Example: no shifting places of work
- Hector is an employee of his local council as a bus driver. Hector must report to his local depot at the start of each shift.
- At the depot, Hector is given his bus routes for the day and the bus he will be driving that shift. During his shift, he drives the bus along the various bus routes and at the end of each shift, Hector drives the bus back to the depot.
- Hector can't claim a deduction for the car expenses he incurs when travelling between his home and the depot.
- Hector doesn't have shifting place of work just because he drives to various locations along his bus routes. He has one regular place of work which is the depot.
- The cost of driving between his home and the depot aren't incurred in earning Hector's income as a bus driver. The expenses are incurred to put Hector in the position to earn his income and are private.
Child care
- You can't claim a deduction for the cost of child care (including school holidays and before and after school care) when you're working. It's a private expense, and the expenses have no direct connection to earning your income.
Cleaning products
- You can claim a deduction for the cost of cleaning products you buy if one of your duties is to keep the bus clean. You can claim items such as anti-bacterial products, window cleaner and tissues.
- You can't claim cleaning or sanitary products you buy for your personal use such as hand sanitiser.
- You can't claim a deduction where your employer provides the cleaning products or reimburses you for the expenses.
Example: deduction for cleaning products
- Dave drives a school bus. One of his duties is to clean the bus after he finishes his shift each day. His employer doesn't provide any cleaning products.
- Dave buys some cleaning cloths, anti-bacterial cleaning spray and window cleaner so that he can wipe down the seats and clean the windows at the end of his shift.
- Dave can claim a deduction for the cost of the cleaning products he buys to clean the bus.
- If Dave uses these products at home, he will need to apportion the expenses for the work-related use and only claim that portion of the expense.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing with protective features or functions you wear to protect yourself from specific risks of injury or illness at work. For example, steel-capped boots or fire-resistant clothing. Conventional clothes you wear at work are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, trousers, socks or closed shoes.
- occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a judge's robes or a chef's chequered pants). Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions.
- a compulsory uniform – clothing that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either:     you as an employee working for a particular employer
- the products or services your employer provides.
- a non-compulsory uniform – a uniform that is not compulsory to wear and that your employer registers on the Register of Approved Occupational Clothing.
Example: compulsory uniform with logo
- Mike is a charter bus driver. His employer requires him to wear shirts with his employer's company logo embroidered on it. The employee guidelines include a requirement to wear black pants and shoes, but don't stipulate any other qualities of those items. Mike's employer does not provide him with any of the items he is required to wear.
- Mike can claim a deduction for the cost of buying the shirts with the company logo as they are a compulsory uniform (distinctive items with his employer's logo and compulsory for him to wear at work).
- He can't claim the cost of buying his black pants and shoes. Even though his employer requires him to wear a specific colour, they are not distinctive enough to make them part of his uniform and are still conventional clothes.
Example: protective clothing
- Rajesh is a bus driver for the city council. His employer requires him to wear steel-capped boots when driving the bus to protect his feet from potential hazards or impacts.
- Rajesh can claim a deduction for the cost to buy the steel-capped boots because they have protective features which protect him for the risk of injury while driving the bus.
- If Rajesh's employer was to provide him the boots or reimburse him for the cost, he couldn't claim a deduction.
Example: registered non-compulsory uniform
- Lena is a bus driver with a travel company. In addition to her role as a bus driver, she also works in the reception area for several hours each day. Unlike her role as a bus driver, reception staff have a uniform that comprises of a suit and shirt in the company's colours monogrammed with the company logo.
- It isn't compulsory for a reception staff member to wear the uniform, however Lena's employer encourages staff members to wear it and has registered the suit as a non-compulsory uniform on the Register of Approved Occupational Clothing.
- Lena can claim a deduction for the cost of buying the uniform, because her employer has registered it on the Register of Approved Occupational Clothing.
Compulsory assessments
- You can claim a deduction for compulsory assessments and medical assessments your employer requires you to take in your current employment. For example, a fitness Ok to drive assessment.
- You can’t claim a deduction for compulsory pre-employment assessments and medical examinations you take to obtain employment as a bus driver. For example, a fitness to drive assessment that you need to pass as a condition of employment.
Example: compulsory assessment you can't claim
- Kirk interviews for a new job as a bus driver and is offered the position. As a condition of employment, before commencing work, Kirk must get a pre-employment medical assessment and provide the medical report to his employer. The assessment and report cost Kirk $125.
- Kirk can't claim a deduction for this assessment, as it's a requirement for Kirk to have this assessment to gain employment as a bus driver.
Drivers licence
- You can't claim a deduction for the cost to get or renew your drivers licence , even if you must have it as a condition of employment. This is a private expense.
- You can claim a deduction for additional costs you incur to get a special licence or condition on your licence in order to perform your work duties. For example, the cost to get a heavy vehicle permit.
Example: heavy vehicle permit
- Rhonda is a bus driver who needs a drivers licence and a heavy vehicle permit to perform her role. Her drivers licence renewal costs her $45 per year and it costs $73 to apply for the heavy vehicle permit.
- Rhonda can't claim a deduction for the $45 to renew her licence because it is a private expense.
- Rhonda can claim the cost of the heavy vehicle permit ($73) as it's an additional expense she must incur in order to perform her work duties.
Fines and penalties
- You can't claim a deduction for any fines or penalties you get when you travel to work or during work. Fines may include parking and speeding fines or penalties. For example, a fine you receive for speeding whilst driving the bus.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- Bus driver expenses G–O
- Bus driver expenses P–S
- Bus driver expenses T–W
Glasses, contact lenses and anti-glare glasses
- You can't claim a deduction for prescription glasses or contact lenses , even if you need to wear them while working. These are private expenses.
- You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.
- You can only claim a deduction for the work-related use of the item.
Example: claiming sunglasses
- Brianna is an employee bus driver. She works for a company that does airport transfers. Her regular route involves picking up passengers from the airport and taking them into the city centre. She wears sunglasses to protect against the glare of the sun while driving the bus. She also needs to wear prescription glasses while driving, for her short-sightedness.
- Brianna buys a pair of prescription sunglasses which counter the glare during day driving. She also buys a pair of untinted prescription glasses for night driving.
- Brianna can claim a deduction for the prescription sunglasses as they protect her eyes from the glare of the sun.
- Brianna can't claim a deduction for the untinted prescription glasses. These are a private expense as they do not provide protection from illness or injury while she is working or from her working environment.
- If Brianna also uses her prescription sunglasses for private purposes, she will need to work out her deduction based on the amount of work-related use.
Laundry and maintenance
- protective (for example, a hi-vis jacket)
- occupation specific and not a conventional, everyday piece of clothing such as jeans or general business attire
- a uniform either non-compulsory registered by your employer on the Register of Approved Occupational Clothing or compulsory.
- $1 per load if it only contains clothing you wear from one of the categories above
- 50c per load if you mix personal items of clothing with work clothing from one of the categories above.
Example: laundry expenses
- Jelani's employer provides her with a compulsory uniform to wear at work. She washes, dries and irons her compulsory uniform in a separate load of washing twice a week. Jelani works 48 weeks during the year.
- She works out her claim of $96 for laundry as follows:
- Number of claimable laundry loads per week × number of weeks = total number of claimable laundry loads
- 2 × 48 = 96
- Total number of claimable laundry loads × reasonable cost per load = total claim amount
- 96 × $1 = $96
- As her total claim for laundry expenses is under $150 Jelani isn't required to have written evidence of her laundry expenses. However, if asked she will need to be able to explain how she works out her claim.
Meal and snack expenses
- overtime meal expenses , but only if you buy and eat the meal while you are performing overtime and you receive an overtime meal allowance under an industrial law, award or agreement
- the cost of meals you incur when you are travelling overnight for the purpose of carrying out your employment duties ( travel expenses ).
- You can't claim a deduction for the cost of food, drink or snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.
Example: no deduction for food and drink
- Renee is a coach driver for a company that conducts day tours for tourists. Her employer pays her a meal allowance of $20 per shift which shows on her income statement at the end of the year.
- During her shift, Renee buys and consumes food and drink. When Renee lodges her income tax return she will need to declare the meal allowance she receives as income from her employer.
- Renee can't claim a deduction for the amount she spends on food and drink. This is because buying and consuming the food and drink was during her regular working hours. Even though she receives an allowance, these expenses are private.
Music streaming services, CDs, audio books or podcasts
- You can't claim a deduction for music streaming services, CDs, audio books, podcasts or devices that you use in the bus. Even if they're used to help relieve fatigue, these items aren't essential to earning your income. They are private expenses.
Newspapers and other news services, magazines and professional publications
- a direct connection between your specific work duties and the content
- the content is specific to your employment and is not general in nature.
- The cost of newspapers, other news services and magazines are generally private expenses and not deductible.
- You can claim a deduction for the cost of buying or subscribing to a professional publication, newspaper, news service or magazine if you can show:
- If you use the publication for work and private purposes, you can only claim the portion related to your work-related use.
Overtime meal expenses
- you receive an overtime meal allowance under an industrial law, award or agreement
- the allowance is on your income statement and payment summary as a separate allowance
- you include the allowance in your tax return as income.
- up to the reasonable amount, you don't have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for all your expenses.
Example: deduction for overtime meals
- Bus driver expenses A–F
- Bus driver expenses P–S
- Bus driver expenses T–W
Parking fees and tolls
- You can't claim a deduction for parking at or near a regular place of work. You also can't claim a deduction for tolls you incur for trips between your home and work. This is a private expense.
- You can claim a deduction for parking fees and tolls you incur on work-related trips. For example, if you drive your car from the depot to head office for training and incur a toll on the way.
Phone, data and internet expenses
- provides you with a phone for work and pays for your usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses .
Example: calculating phone expenses
- George is a bus driver and he uses his personal mobile phone for work purposes. He is on a set mobile phone plan of $49 a month.
- He receives an itemised bill from his phone provider each month by email, which includes details of the individual phone calls he has made.
- George regularly prints out his monthly phone bill and for one month he highlights his work-related phone calls. He also makes notes on the highlighted itemised bill about who he has phoned, for example the depot and his manager.
- Out of the 150 phone calls he has made in a 4-week period, George works out that 30 (20%) of the individual phone calls are for work. He then applies that percentage to his monthly plan amount ($49 a month).
- George calculates his phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 30 ÷ 150 = 0.20 (that is 20%)
- George can claim 20% of the total bill of $49 for each month for work purposes.
- $49 × 0.20% = $9.80
- Since George was only at work for 46 weeks of the year (10.6 months), George calculates his work-related mobile phone expense deduction as follows:
- 10.6 months × $9.80= $103.88
Example: work and private use
- Suzette uses her computer and personal internet account at home to access her work emails and complete compulsory training. Suzette also uses her computer and the internet for private purposes.
- Suzette keeps a diary for a 4 week period, recording the times she used the internet for work and private purposes.
- Suzette's internet use diary showed 10% of her internet usage was for work-related activities and 90% was for private use. As her internet service provider charge for the year was $1,200, she can claim:
- $1,200 × 0.10 = $120 as work-related internet use.
- If anyone else was accessing the internet connection, Suzette needs to reduce her claim to account for their use.
Removal and relocation expenses
- You can’t claim a deduction for the cost to transfer or relocate to a new work location. This is the case whether the move is a condition of your existing job or you are taking up a new job.
Repairs to tools and equipment
- You can claim a deduction for repairs to tools and equipment you use for work. If you also use them for private purposes you can only claim an amount for your work-related use.
Seat covers
- You can't claim a deduction for the cost of seat covers you use in your bus for work. This is a private expense.
Self-education expenses
- maintains or improves the skills and knowledge you need for your current duties
- results in or is likely to result in an increase in your income from your current employment.
- doesn't have a connection with your current employment
- only relates in a general way to your current employment
- enables you to get employment or change employment.
- Higher Education Loan Program (HELP) (FEE-HELP and HECS-HELP)
- VET Student Loans (VSL)
- Australian Apprenticeship Support Loan (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: education doesn't maintain or improve specific skills or knowledge
- Jennifer works as a bus driver for the local state high school. Her duties consist of picking up and dropping off students before and after school. She drives the bus as a part-time job while she is studying a Master of Transport logistics.
- There is a general connection between the work she currently performs as a bus driver and her study. However, the duties she undertakes in her role as a bus driver don't relate to the specific knowledge she gains from her study.
- She can't claim a deduction for the costs of obtaining her Master of Transport Logistics, as the course does not have a connection with her current employment.
Example: maintains or improves specific skills or knowledge
- Cyril is a bus driver for an airport transfer service. His duties include collecting fares, giving change, generating tickets as well as assisting passengers with baggage. He enrols in a weekend training course on manual lifting in the workplace. The course provides him with knowledge on safely lifting, moving and securing luggage and directly ties into the work he does from day to day as a bus driver.
- Cyril can claim a deduction for the cost of attending the training course, as it maintains and improves the skills and knowledge he needs for his current duties.
- However, if Cyril's employer paid for or reimbursed him for the cost of attending the training course he would be unable to claim a deduction.
Seminars, conferences and training courses
- You can claim for the cost of seminars, conferences and training courses that relate to your work as a bus driver.
- The costs you can claim includes fares to attend the venue where the seminar, conference or training course is held and registration costs. If you need to travel and stay away from home overnight to attend such an event, you can also claim the cost of accommodation and meals.
- You may not be able to claim all of your expenses if attending a seminar, conference or training course is for both work-related and private purposes. If the private purpose is incidental, such as a catered lunch or a reception for delegates, you can still claim all your expenses. However, if the main purpose is not work-related, such as attending a conference while on a holiday, you can only claim the direct costs. Direct costs include the registration costs.
- Where you have a dual purpose for attending the seminar, conference or training course you can only claim the work-related portion. For example, you add a holiday of one week to a training course that runs for one week.
Stationery
- You can claim a deduction for the cost of logbooks, diaries and pens that you use for work. For example, to record the behaviour of students or damage to vehicles.
- You can't claim a deduction if your employer provides or reimburses you for these items.
Sunglasses, sunhats and sunscreen
- must work in the sun for extended periods
- use these items to protect you from the real and likely risk of illness or injury while at work.
- You can claim a deduction for the work-related use of sunglasses, sunhats and sunscreen lotions if you:
- This includes prescription sunglasses and anti-glare glasses.
- You can only claim a deduction for the work-related use of the products if you also wear them for private purposes.
Example: deduction for sunglasses
- Bus driver expenses A–F
- Bus driver expenses G–O
- Bus driver expenses T–W
Tools and equipment
- you use it mainly to produce non-business assessable income
- it's not part of a set that together cost more than $300
- it's not identical, or substantially identical to, other items that together cost more than $300.
- cost more than $300
- is part of a set that together cost more than $300
- is identical, or substantially identical to, other items that together cost more than $300.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- you sleep in accommodation your employer provides
- you eat meals your employer provides
- your employer or a third party reimburses you for any costs you incur.
- you were away overnight
- you spent the money
- the travel directly relates to earning your employment income
- how you calculate your claim.
- the travel allowance is not on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
- you spent the whole allowance on deductible accommodation, meal, and incidental expenses, if applicable.
- you receive a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Example: travel away from home overnight
- Jules is a bus driver. She lives in Sydney and usually transports primary school children to and from school each day. Each year Jules drives the school children to Mt Hotham for a 3 day snow trip with the school.
- Jules can claim a deduction for the cost of her accommodation, meals and incidental expenses she incurs while travelling away from her home overnight in the course of performing her employment duties.
- Jules can't claim a deduction if her employer pays for or reimburses her for these expenses.
- For more information, see TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024–25
Union and professional association fees
- Bus driver expenses A–F
- Bus driver expenses G–O
- Bus driver expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Bus Drivers
Use this checklist at tax time to make sure you don't miss any deductions.
💡 Practical Tips
📱 Use the myDeductions Tool
Download the ATO app and use myDeductions to record expenses throughout the year. Much easier than collecting receipts at tax time.
🧾 The $300 Rule
You can claim up to $300 in work-related expenses without receipts — but you must have actually spent the money and it must be related to earning your income.
🏠 Working From Home
If you work from home, you can claim 67 cents per hour (revised fixed rate) for running expenses like electricity, internet, and phone. Keep a record of hours worked.
🚗 Car Expenses
Choose between the cents per km method (85c/km, max 5,000 km) or logbook method (actual expenses × business use %). A 12-week logbook is valid for 5 years if your circumstances don't change.
⚠️ Common Mistakes & ATO Audit Flags
The ATO actively audits bus drivers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Claiming expenses reimbursed by your employer
Fix: If your employer already paid you back, you can't also claim a deduction. Check your pay slips.
Not keeping receipts for claims over $300
Fix: You must have records for all deductions over $300. Bank/credit card statements alone aren't enough — keep the actual receipts.
Claiming private expenses as work-related
Fix: Only expenses directly related to earning your income are deductible. Personal items worn or used at work don't count.
🔍 ATO Audit Flags
Deductions significantly above average for your occupation
The ATO publishes benchmarks. If your claims are well above the norm, expect a 'please explain'.
Claiming the same expense twice (e.g., WFH and office supplies)
The ATO's data matching catches double-dips. Make sure each expense is claimed once.
Data sourced from the Australian Taxation Office — Bus Drivers Guide. Last updated: 2026-03-14.