Tax Deductions for Train Drivers
If you're working as a train 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 234+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
29
Specific Items
234
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 train driver during the income year in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or a payment summary will show all 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, dirty work
- 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
- 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
- Mario is an employee train driver. His employer requires him to relocate to another depot. Mario's employer pays him an allowance to cover the cost of finding accommodation at the new location and moving his household items. The relocation allowance is shown on Mario's income statement.
- Mario must include the allowance as income in his tax return.
- Although the allowance is paid to help Mario pay for his relocation expenses, he can't a deduction for the expenses he incurs. This is because he doesn't incur the relocation expenses in earning his income and they are private.
- Jasmine is a long-haul train driver. Jasmine requires certain hand tools on each of her shifts, so her employer pays her a tool allowance each week.
- At the end of the income year, Jasmine's employer shows the total tool allowance ($350) on her income statement.
- During the income year, Jasmine buys a new hammer for $49 and spanner set for $125. She only used the tools for work.
- Jasmine must show the allowance of $350 as income on her tax return.
- Jasmine can claim a deduction for the cost of the tools she buys and uses for work ($174).
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
- Deductions for work expenses
- Record keeping for work expenses
Car expenses
- live a long way from your usual or regular workplace
- have to work outside normal business hours (for example, weekend or early morning shifts).
- 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, travelling from your first job as a train driver directly to your second job as a safety instructor
- to and from an alternative workplace for the same employer on the same day – for example, travelling between depots or train stations for work
- from home directly to an alternative workplace – for example driving to a training provider's premises to undertake a course.
- 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
- William is a long-haul train driver. For each shift, he drives his own car to work and parks it in a secure parking centre. He wears his train driver uniform to work but carries a duffel bag containing a change of clothes, a pair of sneakers as well as his lunch and a drink bottle.
- William can't claim expenses that he incurs for driving his car from home to work as the bag and its contents are not essential for him to perform his duties as a train driver and they are not considered bulky. The costs of travelling between home and work are private expenses.
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.
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 drill pants and shirts, socks or closed shoes such as sneakers.
- 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 supplied by employer
- Thomas is a train driver. His employer requires him to wear a uniform comprising of a white business shirt and dark grey business pants both with the rail logo embroidered on them.
- The uniform was provided to Thomas as part of his induction pack at no cost to him. If the uniform is damaged, his employer will replace or repair it.
- Thomas can't claim a deduction for the cost of buying or repairing his compulsory uniform as he doesn't incur any expenses.
Example: compulsory uniform with logo
- Mikaela must buy and wear polo shirts with her employer's company logo embroidered on them. The employee guidelines include a requirement to wear professional black pants or a skirt and black shoes.
- Mikaela can claim a deduction for the cost of buying the logoed shirts as they are a compulsory uniform (distinctive items with her employer's logo and compulsory for her to wear at work).
- She can't claim a deduction for the cost of buying her black pants or skirt and shoes as they are conventional clothes. Even though her employer requires her to wear a specific colour, they are not distinctive enough to make them part of her uniform and are still conventional and the cost is private.
Example: protective shoes
- Trung is a long-haul train driver. He delivers coal to mine sites. For safety reasons, the mine sites require anyone coming on site to wear steel-capped boots and a hi-vis vest.
- Trung's employer provides him with a hi-vis vest but not with boots. Trung buys a pair of steel-capped boots for $150 to wear while he is working.
- Trung can't claim a deduction for the hi-vis vest. Although it is protective in nature, his employer provides the vest to him, so he does not incur any expense.
- Trung can claim a deduction of $150 for the steel-capped boots he purchased. The boots have protective qualities and protect him from the risk of injury while he is working.
Compulsory assessments
- You can claim a deduction for compulsory assessments and medical examinations your employer requires you to take in your current employment. For example, a fitness to drive assessment.
- You can’t claim a deduction for compulsory pre-employment assessments and medical examinations you take to obtain employment as a train driver. For example, a fitness to drive assessment you need to pass as a condition of employment.
Example: compulsory assessment you can't claim
- Ros was interviewed for a new job as a train driver in regional NSW and is offered the position, subject to a condition. The condition was that, before commencing work, Ros must get a pre-employment medical assessment done and then provide the medical report to her employer.
- The assessment and report cost Ros $125.
- Ros can't claim a deduction for this assessment and report, as it's a requirement for her to have this assessment to gain employment as a train 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 to perform your work duties. For example, the cost you incur to get a heavy vehicle permit.
- You can't claim a deduction if your employer pays for or reimburses you for the cost to obtain a special license or condition.
Entertainment and social functions
- work breakfasts, lunches or dinners
- attendance at sporting events
- gala or social nights
- concerts or dances
- cocktail parties
- other similar types of functions or events.
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.
Example: fine for speeding
- Russell is a local train driver. Russell was caught breaking the speed limit while on duty and was issued with a fine by the relevant authority.
- Russell can't claim a deduction for the cost of the fine.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- You can claim a deduction for the cost of first aid training courses if you are both:
- You can’t claim a deduction if your employer pays for or reimburses you for the cost of the course.
Example: first aid courses
- Train driver expenses G–O
- Train driver expenses P–S
- Train 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.
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 and registered by your employer on the Register of Approved Occupational Clothing or compulsory.
- $1 per load if it only contains clothing you wear at work 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: laundering a compulsory uniform
- Kelly is a short haul train driver. She drives between Albury and Melbourne each day. Kelly's employer provides her with a compulsory uniform that she is responsible for cleaning.
- She washes, dries and irons her compulsory uniform in a separate load of washing twice a week. Kelly works for 40 weeks during the income year.
- She calculates her claim of $80 for laundry expenses as follows:
- Number of claimable laundry loads per week × number of weeks × reasonable cost per load
- 2 × 40 × $1 = $80
- As Kelly's total claim for laundry expenses is less than $150, she isn't required to keep written evidence of her laundry expenses.
- Although Kelly isn't required to keep evidence to prove her claim for laundry expenses, if asked, she will still be required to explain how she calculated her claim.
Licences, cards and permits
- You can’t claim the cost to get your initial licence, regulatory permit, cards or certificates to get a job. For example, a heavy vehicle permit.
- You can claim a deduction for costs you incur to get or renew your licence, regulatory permit, card or certificate to continue to perform your work duties. For example, you can't claim the initial cost of getting your train drivers licence. However, you can claim the cost to renew it during the period you are working.
Meal and snack expenses
- take a mandatory long rest break as part of your shift
- sleep away from home overnight for work.
- 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 ).
Example: when you can't claim a meal expense
- Matthew is a short-haul train driver who drives a passenger train from Sydney to Canberra. He then returns to his station in Sydney the same day. He buys food and drink during the course of the trip.
- As this trip is part of Matthew's normal working day, he can't claim a deduction for the food and drink he buys.
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 train. 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 and professional publications 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 industrial law, award or agreement
- the allowance is on your income statement or 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 your expenses.
Example: deduction for overtime meal
- Train driver expenses A–F
- Train driver expenses P–S
- Train 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 regular place of work. These are private expenses.
- You can claim a deduction for parking fees and tolls you incur on work-related trips.
Example:
- Troy has to drive out to meet another driver 20km away from the depot due to the driver having to take their mandatory long rest break. Troy takes over driving the train and the other driver drives his car back to the depot. Troy pays a road toll on his way to meet the other driver.
- Troy can claim a deduction for the toll he pays. The toll is incurred while he uses his car for a work-related purpose.
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
- Violet is a train driver and she uses her phone for work purposes. She is on a set plan of $49 a month.
- She receives an itemised bill from her phone provider each month by email, which includes details of the individual phone calls she has made.
- At least once a year, Violet prints out her monthly bill and highlights her work-related phone calls. She also makes notes on the itemised bill about who she has phoned for work – for example, her manager and depot.
- Out of the 300 phone calls she has made in a 4-week period, Violet works out that 60 (20%) of the individual call expenses billed to her are for work and applies that percentage to her monthly plan amount ($49 a month).
- Violet works out her work-related mobile phone expense deduction as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 60 ÷ 300 = 0.20 (that is 20%)
- Violet can claim 20% of the total bill of $49 for each month for work purposes:
- $49 × 0.20 = $9.80
- As Violet worked for 46 weeks of the year (10.6 months), she calculates her work-related mobile phone expense deduction as follows:
- 10.6 months × $9.80 = $103.88
Example: work and private use
- Sylvia uses her computer and personal internet account at home to access her work emails, rosters and review online training courses when required. She uses her computer and the internet for private purposes.
- Sylvia keeps a diary for a 4-week period, recording the times she used the internet for work and private purposes. Sylvia's diary shows 10% of her internet time 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 for work-related internet use
- If anyone else was accessing the internet connection, Sylvia needs to reduce her claim to account for their use.
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 train 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 Loans (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: Education not related to current employment
- John is a train driver but would like to start up his own transport business. He is completing a part-time course in Business Administration.
- As the course doesn't have a connection to his current employment as a train driver, he can't claim a deduction.
Example: Education related to current employment
- Frances is a train driver based in Lismore, NSW. She travels to Sydney to attend a 2-day course on shunting, coupling and uncoupling. The course will improve her skills in her current position.
- Frances can claim a deduction for the course in addition to the cost of travel to and from the course, meals, incidentals and overnight accommodation in Sydney.
- If Frances' employer pays for or reimburses her for these expenses, she can't claim a deduction.
Sunglasses, sunhats and sunscreens
- must work outdoors in the sun for prolonged 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 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: claiming sunglasses
- Train driver expenses A–F
- Train driver expenses G–O
- Train driver expenses T–W
Taxi, ride-share, public transport and car hire
- You can claim a deduction for transport costs if you travel in the course of performing your work. For example, taking a taxi to the depot or the station because you have reached your maximum driving hours, or your employer requires you to travel from the depot to another location to start your work.
- You can’t claim a deduction for transport expenses you incur to travel between home and your regular place of work because these are private expenses.
- You can't claim a deduction if your employer reimburses you for these expenses.
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.
Example: deduction for tools essential to work
- On 1 July, Alison a train driver buys a set of spanners for $100.
- She uses these tools at work during the week and at home on weekends to work on her car.
- As the set of spanners cost less than $300, Alison can claim an immediate deduction based on her work-related usage in the year she buys them. She uses them 5 out of 7 days at work. A reasonable basis for calculating the deduction is:
- 5 ÷ 7 × $100 = $71
- If the set of spanners cost $400, Alison can't claim an immediate deduction for the total cost of the spanners. She can claim a deduction for their decline in value over the effective life of the tools.
- Alison looks up the ATO website on the effective life of depreciating assets. It states the effective life for hand tools is 10 years.
- She works out the deduction for the decline in value of her spanner set using the prime cost method:
- Asset's cost × (days held ÷ 365) × (100% ÷ asset's effective life) × work use percentage
- She has held the spanner set for 365 days and her work use percentage is 71%, that is:
- $400 × (366 ÷ 365) × (100% ÷ 10) × 0.71 = $28.48
- Alison can claim a deduction of $28 per year as deductible decline in value of her spanner set for 10 years.
Example: private expenses not deductible
- Olivia is a train driver. She buys a travel mug to drink out of while she is driving as the movement of the train can cause spills.
- Olivia can't claim a deduction for her travel mug. It is a private expense. This would be the case even if Olivia used the travel mug on a shift where she was required to travel for work and sleep away from home overnight.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- you slept 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 are not required to sleep away from your home overnight/take your mandatory long rest break in the course of performing your employment duties, for example if you drive a train interstate and return home the same day or without taking your mandatory long rest break
- you choose to sleep near your workplace rather than returning home.
- you were away overnight
- you have spent the money
- the travel directly relates to earning your employment income
- how you work out 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 received a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Example: away from home overnight, no allowance
- Joe is a long-haul train driver. He works shifts that require him to take a long mandatory rest break while travelling for work. He travels to a station where he hands the train over to another driver and takes his break at the company-paid accommodation.
- Joe buys himself dinner at a restaurant nearby and breakfast at the local bakery. After his rest break, Joe takes over a train from another driver and drives back to his home depot. Joe doesn't receive a travel allowance for the travel.
- Joe can't claim a deduction for the accommodation as his employer provides it and he incurs no cost.
- Joe can claim the cost of his meals because he incurs the cost as a result of having to sleep away from home when travelling for work. As he didn't receive a travel allowance, he needs to get and keep receipts for the meal expenses he incurred.
Example: travel allowance not on income statement
- his allowance is not shown on his income statement
- his allowance doesn't exceed the reasonable amount set
- he spent the whole amount on deductible expenses
- he did not spend more than the reasonable amount.
Union and professional association fees
- You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.
Watches and smart watches
- You can't claim a deduction for the cost of buying or maintaining watches or smart watches , even if they are required as part of your uniform. This includes chronograph watches as they are a private expense.
- However, you can claim a deduction if your watch has special characteristics that you use for a work-related purpose. For example, a nurse's fob watch.
- If the watch cost more than $300, you can claim a deduction for its decline in value over the effective life.
- You can claim a deduction for the cost of repairs, batteries and watchbands for special watches. You only claim a deduction for the amount you use the item at work if you also wear it for private purposes.
- Similar to ordinary watches, a smart watch (that connects to a phone or other device to provide notifications, apps and GPS, for example) is a private expense and not deductible under ordinary circumstances.
- However, if you require some of the smart watch's functions as an essential part of your employment activities, you may be able to apportion the expense between your private and work use. In order to show your work-related use of the watch, you will need to keep a diary or similar record of your use of the watch for a representative period.
Example: smart watch not deductible
- Train driver expenses A–F
- Train driver expenses G–O
- Train driver expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Train 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 train 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 — Train Drivers Guide. Last updated: 2026-03-14.