Are Driving Lessons Tax Deductible?

If you’re learning to drive for work purposes, you may be wondering, can driving lessons be tax deductible?

Unfortunately, the answer isn’t black and white. 

There are many things to consider – let’s take a look at them!

Can Driving Lessons Be Tax Deductible?

The Australian Tax Office (ATO) permits tax deductions on any costs that are required for someone to earn an income.

For example, if you need driving lessons to become a taxi driver, then you would qualify for a tax deduction. 

This would also be the case for other professions, like: 

• Truck driving
• Bus driving
• Courier driving
• Ride-share driving

It’s common for anyone learning to drive to ask: “can my driving lessons be tax deductible?”

If you’re taking driving lessons for personal reasons, like wanting to improve your driving skills or to pass a driving test, then you’re highly unlikely to be able to make a claim. 

Such driving lessons are not generally not tax deductible.

When Can I Claim Driving Lessons on Tax?

If driving lessons are required as part of your job, then their cost may be tax deductible as a work-related expense. 

However, you’ll need to keep a record of all your receipts and invoices to ensure you can claim them back on tax.

But for the self-employed who need driving lessons in order to earn money – the cost of driving lessons may come under the heading of a business expense as opposed to a work-related one.

You’ll need to be prepared to show evidence that the lessons were necessary for you to conduct your business.

You can prove this with a letter from a client, or evidence of the types of deliveries you’re making.

But if you definitely need driving lessons for your job – then that’s when you should be confident your driving lessons can be tax deductible.

Can You Claim Driving Lessons on Taxes?

If you’re a sole trader or partnership, you can claim money back for business-related expenses, like the cost of:

• Fuel
• Repairs
• Maintenance for your vehicle (as long as it’s the one being driven for your work)

But – if you drive the same vehicle for both personal and business purposes, you might have to separate both costs to determine the final amount that can be claimed back on tax. 

Are Driving Lessons Tax Deductible For Contractors? 

Driving lessons for contractors may be tax-deductible if the lessons are directly related to work. 

The Australian Taxation Office (ATO) does allow contractors to claim work-related expenses as deductions on their tax return, including the cost of courses or lessons necessary for them to bolster or keep up their skills. 

So, if you’re a contractor wondering: “Can I claim driving lessons on educational tax”, the answer is, in some cases, yes! 

For example, a courier or delivery driver may claim driving lessons if they’re required for maintaining or improving their driving skills.

The Final Word on Tax Deductions for Driving Lessons 

So, can driving lessons be tax deductible?

Whether or not you can claim driving lessons on tax in Australia depends on whether you need to drive a vehicle in order to earn your income. 

If you’re a taxi driver, truck driver, bus driver, courier driver or ride-sharing driver, then you should speak to your accountant about a tax deduction.

But if you’re taking driving lessons for personal reasons – that’s generally not tax deductible. 

If you’re still asking: “can driving lessons be tax deductible”, and this blog hasn’t addressed your special circumstances, then get in touch with the Australian Tax Office or a tax professional for a definitive answer.