How Tax Deductions Work for Driving Instructors
Driving instructors may personally pay for lesson-vehicle running costs, dual-control equipment, insurance, fuel, phone use, professional training, and other expenses connected to delivering driving lessons.
To claim an expense, it generally must relate directly to earning your income, must have been paid by you without reimbursement, and must be supported by appropriate records.
This 2026 guide explains the main tax deductions driving instructors may be able to claim in Australia, whether they work as employees, contractors or driving-school business owners.
Driving Instructors in Australia: Employment Overview
- Average weekly pay: $1,380
- Employment size: 6,405
- Future growth: Very strong
- Skill level: Certificate III or IV
Driving Instructor Tax Deduction Checklist for 2026
| Expense | Potentially claimable? | Main condition |
|---|---|---|
| Fuel used for paid driving lessons | Potentially | Business or work-use portion only |
| Vehicle registration and insurance | Potentially | Must relate to lesson-vehicle use |
| Repairs, servicing and cleaning | Potentially | Must relate to earning driving-instruction income |
| Vehicle depreciation or lease costs | Potentially | Business-use portion only |
| Dual-control installation and maintenance | Potentially | Must be used for paid instruction |
| Travel between students or lesson locations | Potentially | Must form part of income-producing work |
| Ordinary travel to a regular workplace | Generally no | Usually considered private travel |
| Standard driver’s licence renewal | No | Treated as a private expense |
| Driving-instructor accreditation renewal | Potentially | Must relate to the current occupation |
| GPS, dashcam and phone mount | Potentially | Work-use portion only |
| Phone and mobile data | Potentially | Claim only the work-related percentage |
| Relevant training and seminars | Potentially | Must relate to the current role |
| Compulsory branded uniform | Potentially | Must meet the ATO uniform rules |
| Sunscreen and sunglasses | Potentially | Must relate to substantial outdoor work |
| General medical examinations | Generally no | Usually private unless a specific exception applies |
| Speeding and parking fines | No | Fines are not deductible |
| Employer-reimbursed expenses | No | You did not ultimately bear the cost |
Typical tax deductions include:
- Motor vehicle travel to and from work if having shifting places of work – working at more than one site each day before returning home.
- Motor vehicle travel between job sites or attending training courses.
- Motor vehicle expenses if providing the vehicle used for driving lessons -includes depreciation, interest, lease payments, fuel, insurance, repairs, and cleaning costs.
- Computers, tools and equipment – includes GPS, and vehicle maintenance tools.
- Union fees, licences, registrations and subscriptions.
- Phone and internet – work %.
- Medical checkup and drug testing fees.
- Compulsory work uniform branded with the employers logo.
- Sun protection costs including sunglasses, sunscreen and cosmetics.
- Courses, seminars and self-education expenses.
- Home office occupancy expenses if required by the employer to work from home – includes rent, mortgage interest, rates, insurance and repairs.
- Home office running expenses.
- Overnight travel expenses visiting clients or attending different workplaces.
Professional memberships.
Non-deductible expenses:
- Speeding and parking fines.
Tax Strategies we can assist you with.
- Self-education expenses
- Sunglasses, sunscreens and cosmetics
- Computers, tools, equipment and other assets
- Compulsory work uniform
- Logbook for motor vehicles
- Union fees, licences, registrations and subscriptions
- Phone and internet
- Home office running expenses
- Overnight travel expenses
Click here to see Tax Calculator for Dentists and Dental Assistants.
Driving Instructor Tax Deduction FAQs
Q1: What can driving instructors claim on tax in 2026?
Driving instructors may be able to claim eligible lesson-vehicle expenses, dual-control equipment, insurance, phone use, training, accreditation renewals and other costs directly connected to earning instruction income.
Q2: Can driving instructors claim fuel and vehicle expenses?
Yes, the work or business-use portion of eligible fuel, servicing, insurance, registration, repairs and other vehicle costs may be claimable. Private use must be excluded.
Q3: Can driving instructors claim their driver’s licence?
No. The cost of obtaining or renewing a standard driver’s licence is generally private, even when it is required for work.
Q4: Can driving instructors claim instructor accreditation fees?
An annual driving-instructor accreditation or authority renewal may be deductible when required to continue working in the current occupation.
Q5: Can driving instructors claim dual controls?
Dual-control installation, repairs and maintenance may be deductible to the extent the equipment is used to earn driving-instruction income.
Last updated: 14 July 2026
