Tax for Truckies

30/05/2026

TRAVELLING BETWEEN HOME AND WORK AND CARRYING BULKY TOOLS

For Australian tax purposes, travel between home and work is normally private and not deductible. However, there is an important exception for workers (including truckies and tradies) who must transport bulky tools or equipment.

You may be able to claim home-to-work travel if all of the following apply:

1. The tools or equipment are essential for your job.
2. They are bulky or cumbersome to transport.
3. There is no secure storage available at your workplace.
4. The main reason for the trip is to transport those tools, not merely to get yourself to work.

EXAMPLE where a claim may be allowed

A truck driver carries a large toolbox, chains, binders, lifting equipment, or other heavy gear that is required for the job, and the employer provides no secure place to leave it at the depot. The driver transports the equipment between home and work each day because it must be kept at home. In that situation, the home-to-work travel may be deductible.

EXAMPLE where a claim is usually NOT allowed

A truck driver keeps a few hand tools or PPE in the vehicle, but those items are not particularly bulky, or secure storage is available at the depot. The trip is primarily commuting to work, so it remains private travel and is generally not deductible.

Evidence to keep

If you’re relying on the bulky-tools exception, keep records showing:

* What tools/equipment you carry.
* Their size and weight.
* Why they are required for your job.
* Why secure storage is unavailable at work.
* A logbook or mileage records showing the trips.

30/05/2026

CLAIMING MEAL AND ACCOMODATION EXPENSES WHEN TRAVELLING AWAY FROM HOME

Note:

RECEIPTS NOT NECESSARY

You must incur the expense ie. spend the money and it is not reimbursed by employer.
You can rely rely on reasonable amounts that ATO issued a Tax Ruling on which is listed below
PROVIDED

credible oral evidence, bank records or bank statements and practical evidence about spending habits could be sufficient proof.

NOTE:
You still need credible evidence that the expenditure was genuinely incurred and work-related.

Meal

Reasonable amount

Breakfast

$31.15

Lunch

$35.55

Dinner

$61.30

Total if all 3 meals are claimed

$128.00

Commissioner of Taxation v Shaw [2026] FCA 197 was a Federal Court decision delivered by Justice Colvin on 4 March 2026 concerning work-related meal expense deductions claimed by a long-haul truck driver. The Commissioner appealed from an Administrative Review Tribunal decision that had allowed the taxpayer’s deductions. The appeal was dismissed.

Key points from the case:

* The taxpayer, Mr Shaw, claimed meal expenses while travelling for work as a truck driver.
* He relied on the ATO “reasonable amounts” determination for travel allowances and did not keep full written substantiation.
* The Court confirmed that:
* claiming at or below the ATO reasonable amount can remove the strict substantiation requirement under Division 900; but
* the taxpayer still must prove the expense was actually incurred under s 8-1 ITAA 1997.
* Importantly, the Court accepted that credible oral evidence, bank records, and practical evidence about spending habits could be sufficient proof even without itemised receipts.
* The Court rejected the Commissioner’s argument that the taxpayer effectively needed full substantiation merely because he claimed the reasonable daily amount.

The decision is significant because it clarifies the distinction between:

1. substantiation requirements; and
2. proving deductibility.

In practical terms, the case suggests:

* taxpayers using the reasonable allowance method do not automatically lose deductions just because receipts are incomplete;
* however, they still need credible evidence that the expenditure was genuinely incurred and work-related.

The judgment may influence future ATO audit practices for truck drivers and employees receiving travel allowances, particularly around meal expense evidence and reasonable allowance claims. At present, the ATO did not appeal the decision to the Full Federal Court within the ordinary appeal period, so the decision currently stands as persuasive Federal Court authority.

25/05/2026

Contact me at [email protected] if you need further explanation of thr article.

Q+A: The changes to capital gains tax have ruffled plenty of feathers. But will they apply to those on Centrelink support payments such as the age pension?

20/05/2026

With Mallee Haulage – I just made it onto their weekly engagement list by being one of their top engagers! 🎉

17/04/2026

Fuel Tax Credits

These credits are available on your quarterly BAS. The Road Usage Charge normally reduces these credits by 32.4 cents per litre but this will not happen for 3 months from 1 April for your June BAS.

However, you will not be able to benefit until you lodge your BAS. In most cases, the increase in fuel tax credits will result in a decrease of what you need to pay to the ATO. Normally you pay your net GST, Tax Instalments for the quarter and wages tax on your quarterly BAS.

17/04/2026

Government initiatives to help Truckies

To help Truckies during the fuel crisis, the Australian government has implemented a 26.3 cents per litre reduction in the fuel excise for three months, reduced the heavy vehicle road user charge to zero, and amended the Fair Work Act to allow rapid, emergency contract adjustments for fuel cost increases. These adjustments date back to 1 April. You will need to calculate the extra cost of fuel since the crisis; and pass on as a levy to customers.

17/04/2026

Thr ATO is currently allowing repayment plans of up to 3 years, reduced upfront commitments,and possible remission of interest and penalties. These arrangements are assessed case by case.
Contact Michael 0408149250 if you need help or advice.

17/04/2026

Truckie who use their private vehicle to drive to their depot with heavy tools ( 20kg) and claim vehicle expenses under thr logbook method.

Motor Vehicle Expenses- Odometer reading.

You must note the number on your ODOMETER on 30 June annually. Sure, you only need to keep your logbook for 12 consecutive weeks in one year which lasts for 5 years but you MUST note your odometer reading at the 30th June annually for your logbook to be valid!!

04/04/2026

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31/03/2026

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