Deductions for bicycles, motorcycles, and other vehicles for working holiday makers

Working holiday makers in delivery work, rideshare, and trades who use non-car vehicles routinely miss vehicle deductions because they assume only cars qualify. They do not.

What vehicles can give rise to deductions?

The main categories are:

• Cars (defined by the ATO as motor vehicles designed to carry fewer than 9 people and less than 1 tonne load): two simplified methods apply (cents-per-kilometre and logbook)
• Motorcycles and scooters: actual-cost method applies, with proportional claim for work use
• Bicycles (including e-bikes): running costs and capital costs can be claimed for work use
• Utility vehicles over 1 tonne load capacity: actual-cost method applies
• Vans and trucks: actual-cost method applies

The deduction method depends on the vehicle classification.

Bicycles for food delivery

A bicycle used for food delivery (Uber Eats, DoorDash, Menulog, Deliveroo) is an income-producing asset. Deductible costs include:

• The cost of the bicycle, claimed as depreciation over its effective life (typically 3 to 5 years)
• Repairs and maintenance (tyres, chains, brake pads, services)
• Cycling equipment used for the work (helmet, lights, lock, panniers)
• Insurance specifically covering the bicycle
• Registration if applicable (rare for bicycles)
• A proportion of running costs (cleaning supplies, replacement parts)

For an e-bike, the same costs apply plus electricity for charging, which can be claimed at a reasonable estimate of the work-related portion.

If the bicycle is used both for delivery work and personal transport, the deduction is limited to the work-related percentage. A bicycle used 80% for delivery and 20% for personal commuting would give an 80% deduction across all the costs above.

Motorcycles for rideshare and work travel

A motorcycle used for rideshare (where the platform allows it) or for work travel between job sites is treated similarly to a bicycle:

• Purchase cost claimed as depreciation over the effective life
• Fuel and oil
• Registration and CTP insurance (the work-related portion)
• Comprehensive insurance (the work-related portion)
• Maintenance and repairs
• Tyres
• Riding gear specifically required for the work (jacket, gloves, helmet)
• Tolls and parking incurred during work

The deduction is calculated on an actual-cost basis with apportionment for work use. There is no cents-per-kilometre simplified method for motorcycles in the same way there is for cars.

Cars: the two simplified methods

For cars (under 1 tonne load capacity, fewer than 9 passengers), the ATO provides two simplified methods:

1. Cents-per-kilometre method: a flat rate per work-related kilometre, up to 5,000 km per car per year. No detailed records of individual costs required, but a reasonable basis for the kilometre estimate must be kept (a few weeks of representative records is usually sufficient).

1. Logbook method: a 12-week logbook records the work-use percentage. That percentage is then applied to actual costs (fuel, services, registration, insurance, depreciation) for the year. The logbook is valid for 5 years before needing renewal.

The cents-per-kilometre method is simpler but capped at 5,000 km. For rideshare drivers and high-vehicle-use workers, the logbook method usually gives a larger deduction. See our article on vehicle expenses and logbooks for the detailed comparison.

What about utes and tray-back vehicles?

Utility vehicles with a load capacity of more than 1 tonne (heavier work utes) are not classified as "cars" for ATO purposes. They are treated under the actual-cost rules:

• Actual fuel costs
• Actual maintenance and registration
• Actual insurance
• Actual depreciation

The cents-per-kilometre method does not apply to heavy utes. Working holiday makers in construction, farm work, or trades who use a heavy ute should track actual costs.

What about cars that are not yours?

A car borrowed from a friend or rented occasionally for work is treated under different rules. If you pay for the use (rental fees, fuel contributions), those payments can be claimed at the work-related percentage. If the use is genuinely free, no deduction arises.

For a car you own with a partner or family member, the deduction is available on your share of the costs you actually paid.

What records do you need?

The records depend on the method:

Cents-per-kilometre method:

• A reasonable estimate of work-related kilometres for the year
• Some supporting evidence of the basis for the estimate (a few weeks of representative kilometres, for example)
• Maximum 5,000 km per car per year

Logbook method (cars):

• A 12-week logbook covering a representative period
• All receipts for fuel, services, registration, insurance for the year
• Records of depreciation
• The work-use percentage applied to total actual costs

Actual-cost method (motorcycles, bicycles, heavy vehicles):

• Records of every cost claimed (receipts or bank statements)
• A reasonable basis for the work-use percentage (diary, schedule of work trips)
• Depreciation records for the vehicle

What are the common deductions that working holiday makers miss?

The most frequently missed vehicle deductions are:

• Bicycle depreciation for delivery riders
• E-bike battery and charging costs
• Motorcycle riding gear required for the work
• Tolls during work trips (which add up significantly in Sydney, Melbourne, Brisbane)
• Parking fees during work activities
• Vehicle cleaning costs for rideshare drivers

Each of these is a legitimate deduction with the right records.

How does this fit with the $1,000 instant deduction rule from 2026-27?

From 1 July 2026, the new $1,000 instant deduction rule applies. If your total work-related expenses (including vehicle costs) are under $1,000 for the year, the flat $1,000 may be the better option. If your vehicle expenses alone exceed $1,000, you continue to use the substantiated actual-cost or logbook methods to claim the full amount. See our article on the $1,000 instant deduction rule for the framework.

How does our service handle vehicle deductions?

When we lodge a tax return through our service, our team:

• Identifies every vehicle used for income-producing purposes during the year
• Applies the correct method (cents-per-kilometre, logbook, or actual-cost) for each vehicle
• Calculates depreciation on bicycles, motorcycles, and other capital items
• Substantiates each claim against the ATO's substantiation rules
• Compares the result to the flat $1,000 instant deduction (from 2026-27) and applies the larger one

For working holiday makers in delivery, rideshare, trades, and any other vehicle-intensive role, the vehicle deduction is often the single largest claim on the return. Get in touch with our team to make sure every legitimate vehicle cost is being captured.