INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

SCHEDULE 2B  

Substantiation rules

TABLE OF DIVISIONS

1	Introduction
2	Substantiating work expenses
3	Substantiating car expenses
4	Substantiating business travel expenses
5	Written evidence
6	Travel records
7	Retaining and producing records
8	Relief from effects of failing to substantiate
9	Award transport payments

Division 2 - Substantiating work expenses  

SECTION 2-2   MEANING OF ``WORK EXPENSE''  

2-2(1)   General.  

A work expense is an expense you incur in producing your salary or wages.

2-2(2)   Travel allowance expenses included.  

Travel allowance expenses count as work expenses. A travel allowance expense is an expense you incur for travel that is covered by a travel allowance. The expense must:

(a) be for accommodation or for food or drink; or

(b) be incidental to the travel.

2-2(3)   [Definition]  

A travel allowance is an allowance your employer pays or is to pay to you to cover expenses:

(a) that you incur for travel away from your ordinary residence that you undertake in the course of your duties as an employee; and

(b) that are expenses for accommodation or for food or drink, or are incidental to the travel.

The travel may be within or outside Australia.

2-2(4)   Meal allowance expenses included.  

Meal allowance expenses count as work expenses. A meal allowance expense is an expense that you incur for food or drink that is covered by a meal allowance.

2-2(5)   [Meal allowance]  

A meal allowance is an allowance that your employer pays or is to pay to you as an employee to enable you to buy food or drink. However, an allowance is not a meal allowance if it is a travel allowance or part of one.

2-2(6)   Motor vehicle expenses excluded.  

An expense to do with a motor vehicle (including a four-wheel drive vehicle) is not treated as a work expense unless it is:

(a) an expense incurred, or a payment made, in respect of travel outside Australia; or

(b) a taxi fare or similar expense.

However, most motor vehicle expenses are covered by the rules about car expenses. See Schedule 2A and Division 3 of this Schedule.

2-2(7)   Other types of expense included.  

In addition to expenses within the general scope of subsection (1), any of the following is a work expense:

(a) depreciation of property you own and that is used, or is installed ready for use, by you in order to produce your salary or wages;

(b) an expense you incur that qualifies as a deduction under section 74 (Election expenses of candidates for Parliament) or 74A (Election expenses of candidates for local governments).

2-2(8)   Non-deductible expenses excluded.  

An expense is not a work expense unless it qualifies as a deduction under some provision of this Act outside this Schedule.

2-2(9)   ``Salary or wages'', ``employer'' and ``employee''.  

In this Division, ``salary or wages'' , ``employer'' and ``employee'' have the meanings given by section 221A .