Income Tax Assessment Act 1997

CHAPTER 5 - ADMINISTRATION  

PART 5-30 - RECORD-KEEPING AND OTHER OBLIGATIONS  

Division 900 - Substantiation rules  

Guide to Division 900  

SECTION 900-1   What this Division is about  

This Division sets out the substantiation rules that apply to certain types of losses or outgoings.

Subdivision 900-A - Application of Division  

SECTION 900-5   Application of the requirements of Division 900  

900-5(1)    
The requirements of this Division apply to an individual.

900-5(2)    
They also apply to a partnership that includes at least one individual, as if the partnership were an individual.

900-5(3)    
They do not apply to any other entity.

SECTION 900-10  

900-10   Substantiation requirement  
To deduct certain types of losses or outgoings, you need to substantiate them under this Division.


Item For this type of loss or outgoing: see:
1. Work expenses Subdivision 900-B
2. Car expenses Subdivision 900-C
3. Business travel expenses Subdivision 900-D

Note:

There are exceptions to these requirements:

  • • Subdivision 900-B has some specific exceptions about work expenses.
  • • Subdivision 900-H provides for relief from the effects of failing to substantiate.
  • • Subdivision 900-I has an exception about certain losses or outgoings related to award transport payments.
  • SECTION 900-12   Application to recipients and payers of certain withholding payments  


    Application to recipients

    900-12(1)    


    If an individual receives, or is entitled to receive, *withholding payments covered by subsection (3), this Division applies to him or her:


    (a) in the same way as it applies to an employee; and


    (b) as if an entity that makes (or is liable to make) such payments to him or her were his or her employer; and


    (c) as if the withholding payments covered by subsection(3) that he or she receives (or is entitled to receive) were salary or wages.



    Application to payers

    900-12(2)    


    This Division applies to an entity that makes, or is liable to make, *withholding payments covered by subsection (3):


    (a) in the same way as it applies to an employer; and


    (b) as if an individual to whom the entity makes (or is liable to make) such payments were the entity ' s employee.



    Withholding payments covered

    900-12(3)    


    This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table.


    Withholding payments covered
    Item Provision Subject matter
    1 Section 12-35 Payment to employee
    2 Section 12-40 Payment to company director
    3 Section 12-45 Payment to office holder
    3A Section 12-47 Payment to *religious practitioner
    4 Section 12-50 Return to work payment
    5 Subdivision 12-C Payments for retirement or because of termination of employment
    6 Subdivision 12-D Benefit and compensation payments


    Subdivision 900-B - Substantiating work expenses  

    SECTION 900-15   Getting written evidence  

    900-15(1)    
    To deduct a *work expense:


    (a) it must qualify as a deduction under some provision of this Act outside this Division; and


    (b) you need to substantiate it by getting written evidence.

    Subdivision 900-E tells you about the evidence you need.

    To find out whether an expense qualifies as a deduction under this Act, see Division 8 (Deductions).


    900-15(2)    
    If your expense is for fuel or oil, you have a choice of either:


    (a) getting written evidence of it under Subdivision 900-E ; or


    (b) keeping odometer records for the period when you owned or leased the *car in the income year.

    Subdivision 28-H tells you about odometer records.

    Note:

    In certain circumstances (for example, under a hire purchase agreement) the notional buyer of property is taken to be its owner (see subsection 240-20(2) ).


    SECTION 900-20  

    900-20   Keeping travel records  
    You need to keep travel records if your expense is for travel that involves you being away from your ordinary residence for 6 or more nights in a row.

    The travel may be within or outside Australia. Subdivision 900-F tells you about travel records.

    Note:

    Members of international flight crews may be exempt from keeping travel records for losses or outgoings covered by travel allowances: see section 900-65 .

    SECTION 900-25   Retaining the written evidence and travel records  

    900-25(1)    
    Once you have the material required by section 900-15 or 900-20 , you must retain it for 5 years. There is no need to lodge it with your *income tax return. The Commissioner may require you to produce it: see Subdivision 900-G . The period for which you must retain it is called the retention period .

    900-25(2)    
    The 5 years start on the due day for lodging your *income tax return for the income year. If you lodge your return later, the 5 years start on the day you lodge it.

    900-25(3)    
    However, the *retention period is extended if, when the 5 years end, you are involved in a dispute with the Commissioner that relates to the expense. See section 900-170 .

    900-25(4)    
    If you do not retain the material for the *retention period, you cannot deduct the expense. If you have already deducted it, your assessment may be amended to disallow the deduction.

    900-25(5)    
    If you lose any of the material, there are rules that might help you in section 900-205 .

    SECTION 900-30   Meaning of work expense  
    General

    900-30(1)    
    A work expense is a loss or outgoing you incur in producing your salary or wages.

    Note:

    This Division also applies to withholding payments that are not salary or wages: see subsection 900-12(3) .



    Travel allowance expenses included

    900-30(2)    
    Travel allowance expenses count as *work expenses. A travel allowance expense is a loss or outgoing you incur for travel that is covered by a *travel allowance. The loss or outgoing must:

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

    (b)    be incidental to the travel.

    900-30(3)    
    A travel allowance is an allowance your employer pays or is to pay to you to cover losses or outgoings:

    (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 losses or outgoings for accommodation or for food or drink, or are incidental to the travel.

    The travel may be within or outside Australia.

    Note:

    This Division also applies to individuals who are not employees: see section 900-12 .



    Meal allowance expenses included

    900-30(4)    
    Meal allowance expenses count as *work expenses. A meal allowance expense is a loss or outgoing that you incur for food or drink that is covered by a *meal allowance.

    900-30(5)    
    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.

    Note:

    This Division also applies to individuals who are not employees: see section 900-12 .



    Motor vehicle expenses excluded

    900-30(6)    
    A loss or outgoing to do with a *motor vehicle is not treated as a *work expense unless it is:

    (a)    a loss or outgoing incurred, or a payment made, in respect of travel outside Australia; or

    (b)    a taxi fare or similar loss or outgoing.

    However, most losses or outgoings to do with a *motor vehicle are covered by the rules about *car expenses. See Division 28 and Subdivision 900-C .



    Other types of losses or outgoings included

    900-30(7)    
    In addition to losses or outgoings within the general scope of subsection (1) , any of the following is a *work expense:

    (a)    

    the decline in value 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)    

    expenditure you incur that qualifies as a deduction under section 25-60 (Parliament election expenses) or section 25-65 (about local government election expenses);

    (c)    

    expenditure you incur that entitles you to a deduction under section 25-100 (transport expenses incurred in your travel between workplaces), other than *car expenses;

    (d)    

    a loss or outgoing you incur in relation to producing your salary or wages that entitles you to a deduction under section 25-125 (COVID-19 tests).
    Note 1:

    This Division also applies to payments that are not salary or wages, but are PAYE earnings: see section 900-12 .

    Note 2:

    In certain circumstances (for example, under a hire purchase agreement) the notional buyer of property is taken to be its owner (see subsection 240-20(2) ).

    Note 3:

    See Subdivision 900-C for car expenses that are also transport expenses incurred in your travel between workplaces.


    SECTION 900-35   Exception for small total of expenses  

    900-35(1)    
    If the total of all the *work expenses (including *laundry expenses, but excluding *travel allowance expenses and *meal allowance expenses) that you want to deduct is $300 or less, you can deduct them without getting written evidence or keeping travel records.

    Note 1:

    If the total is more than $300, you need to substantiate all the work expenses, not just the excess over $300.

    Note 2:

    Whether or not your work expenses total $300 or less, for certain expenses that are each $10 or less and total $200 or less you can get written evidence by making your own record, instead of getting a document from the supplier: see section 900-125 .


    900-35(2)    
    This limit can be increased from time to time by regulations made under section 909-1 .

    900-35(3)    
    A *transport expense that Subdivision 900-I (Award transport payments) lets you deduct without following the rules in this Division does not count towards this limit.

    SECTION 900-40   Exception for laundry expenses below a certain limit  

    900-40(1)    
    Even if the *work expenses you claim total more than $300, you can still deduct up to $150 of *laundry expenses without getting written evidence of them.

    900-40(2)    
    However, this exception does not increase the $300 limit in section 900-35 to $450: your *laundry expenses still count toward that limit.

    Example:

    You want to deduct laundry expenses of $140 and union dues of $200. These work expenses total more than $300, so the exception in section 900-35 doesn't apply. This means you must substantiate the union dues expense. However, because of the exception in this section, you don't need to get written evidence of the laundry expenses.


    900-40(3)    
    This limit can be increased from time to time by regulations made under section 909-1 .

    900-40(4)    
    A laundry expense is a *work expense to do with washing, drying or ironing clothes (but not dry cleaning).

    SECTION 900-45  

    900-45   Exception for work expense related to award transport payment  
    You may be able to deduct, without getting written evidence or keeping travel records, a *transport expense you incurred that is related to an allowance or reimbursement paid or payable to you by your employer under an *industrial instrument that was in force on 29 October 1986. Subdivision 900-I tells you about this.

    Note:

    This Division also applies to entities that are not employers, but pay (or are liable to pay) withholding payments covered by subsection 900-12(3) .

    SECTION 900-50   Exception for domestic travel allowance expenses  

    900-50(1)    
    You can deduct a *travel allowance expense for travel within Australia without getting written evidence or keeping travel records if the Commissioner considers reasonable the total of the losses or outgoings you claim for travel covered by the allowance.

    900-50(2)    
    In deciding whether the total of the losses or outgoings you claim is reasonable, the Commissioner must take into account the total of the losses or outgoings of the following kinds that it would be reasonable for you to incur for the travel:


    (a) accommodation;


    (b) food or drink;


    (c) losses or outgoings incidental to the travel.

    SECTION 900-55   Exception for overseas travel allowance expenses  

    900-55(1)    
    You can deduct a *travel allowance expense for travel outside Australia without getting written evidence under the same conditions as for domestic *travel allowances, except that you still have to get written evidence for losses or outgoings for accommodation.

    900-55(2)    
    Consequently, in deciding whether the total of the losses or outgoings you claim is reasonable, the Commissioner must disregard losses or outgoings for accommodation.

    900-55(3)    
    However, for overseas travel covered by a *travel allowance you must still keep travel records if the travel involves you being away from your ordinary residence for 6 or more nights in a row: Subdivision 900-F tells you about travel records.

    SECTION 900-60  

    900-60   Exception for reasonable overtime meal allowance  
    You can deduct a *meal allowance expense without getting written evidence if:


    (a) the allowance is to enable you to buy food or drink in connection with overtime that you work; and


    (b) the allowance is paid or payable to you under an *industrial instrument; and


    (c) the Commissioner considers reasonable the total of the losses or outgoings you claim that are covered by the allowance.

    SECTION 900-65  

    900-65   Crew members on international flights need not keep travel records  
    You can deduct a *travel allowance expense without keeping travel records if:


    (a) the allowance covers travel by you as a crew member of an aircraft; and


    (b) the travel is principally outside Australia; and


    (c) the total of the losses or outgoings you claim for the travel that are covered by the allowance does not exceed the allowance.

    Subdivision 900-C - Substantiating car expenses  

    SECTION 900-70   Getting written evidence  

    900-70(1)    


    For the " log book " method of deducting a *car expense, you need to substantiate the expense by getting written evidence. Subdivision 900-E tells you about the evidence you need.

    Subdivision 28-F tells you about the " log book " method.


    900-70(2)    
    (Repealed by No 162 of 2015)


    900-70(3)    
    If you are using the " log book " method and your expense is for fuel or oil, you do not need to get written evidence of it, because section 28-100 already requires you to keep odometer records for the period when you *held the *car in the income year.

    SECTION 900-75   Retaining the written evidence and odometer records  

    900-75(1)    
    Once you have the material required by this Subdivision, you must retain it for 5 years. There is no need to lodge it with your *income tax return. The Commissioner may require you to produce it: see Subdivision 900-G . The period for which you must retain it is called the retention period .

    900-75(2)    
    The 5 years start on the due day for lodging your *income tax return for the income year. If you lodge your return later, the 5 years start on the day you lodge it.

    900-75(3)    
    However, the *retention period is extended if, when the 5 years end, you are involved in a dispute with the Commissioner that relates to the expense. See section 900-170 .

    900-75(4)    
    If you do not retain the material for the *retention period, you cannot deduct the expense. If you have already deducted it, your assessment may be amended to disallow the deduction.

    900-75(5)    
    If you lose any of the material, there are rules that might help you in section 900-205 .

    Subdivision 900-D - Substantiating business travel expenses  

    SECTION 900-80   Getting written evidence  

    900-80(1)    
    To deduct a *business travel expense:


    (a) it must qualify as a deduction under some provision of this Act outside this Division; and


    (b) you need to substantiate it by getting written evidence.

    Subdivision 900-E tells you about the evidence you need.

    To find out whether an expense qualifies as a deduction under this Act, see Division 8 (Deductions).


    900-80(2)    
    If your expense is for fuel or oil, you have a choice of either:


    (a) getting written evidence of it under Subdivision 900-E ; or


    (b) keeping odometer records for the period when you owned or leased the *car in the income year.

    Subdivision 28-H tells you about odometer records.

    Note:

    In certain circumstances (for example, under a hire purchase agreement) the notional buyer of property is taken to be its owner (see subsection 240-20(2) ).


    SECTION 900-85  

    900-85   Keeping travel records  
    You need to keep travel records if your expense is for travel that involves you being away from your ordinary residence for 6 or more nights in a row. Subdivision 900-F tells you about travel records.

    SECTION 900-90   Retaining the written evidence and travel records  

    900-90(1)    
    Once you have the material required by section 900-80 or 900-85, you must retain it for 5 years. There is no need to lodge it with your *income tax return. The Commissioner may require you to produce it: see Subdivision 900-G . The period for which you must retain it is called the retention period .

    900-90(2)    
    The 5 years start on the due day for lodging your *income tax return for the income year. If you lodge your return later, the 5 years start on the day you lodge it.

    900-90(3)    
    However, the *retention period is extended if, when the 5 years end, you are involved in a dispute with the Commissioner that relates to the expense. See section 900-170 .

    900-90(4)    
    If you do not retain the material for the *retention period, you cannot deduct the expense. If you have already deducted it, your assessment may be amended to disallow the deduction.

    900-90(5)    
    If you lose any of the material, there are rules that might help you in section 900-205 .

    SECTION 900-95   Meaning of business travel expense  
    General

    900-95(1)    
    A business travel expense is a *travel expense, in so far as you incur it in producing your assessable income other than salary or wages.

    Travel expense

    900-95(2)    
    A loss or outgoing is a travel expense if you incur it for travel by you that involves you being away from your ordinary residence for at least one night. The travel may be within or outside Australia.

    Salary and wages travel expenses excluded

    900-95(3)    
    In so far as you incur *travel expenses in producing your salary or wages, the expenses are not treated as *business travel expenses. Instead, they are dealt with as *work expenses in Subdivision 900-B .

    Note:

    This Division also applies to withholding payments that are not salary or wages: see subsection 900-12(3) .



    Travel allowance expenses excluded

    900-95(4)    
    *Travel allowance expenses are not treated as *business travel expenses. They too are dealt with as *work expenses in Subdivision 900-B .

    Motor vehicle expenses excluded

    900-95(5)    
    A loss or outgoing to do with a *motor vehicle is not treated as a *business travel expense unless it is:


    (a) a loss or outgoing incurred, or a payment made, in respect of travel outside Australia; or


    (b) a taxi fare or similar loss or outgoing.

    However, most *motor vehicle expenses are covered by the rules about *car expenses. See Division 28 and Subdivision 900-C .


    Subdivision 900-E - Written evidence  

    SECTION 900-100   What this Subdivision is about  

    This Subdivision tells you how you must get written evidence to support a claim for a deduction.

    Operative provisions

    SECTION 900-105  

    900-105   Ways of getting written evidence  
    Each of the following sections has a set of rules for a particular way of getting written evidence to substantiate a deduction. Which ones you can use depends on the type of expense. You only need to use one set of rules to support an expense.

    SECTION 900-110   Time limits  

    900-110(1)    
    There is no time limit for getting written evidence of an expense (unless you want to record the expense yourself under section 900-125 or 900-130 ). But until you get written evidence of it, you are not entitled to a deduction for the expense.

    900-110(2)    
    If when you lodge your *income tax return for the income year you have good reason to expect to get written evidence of the expense within a reasonable time, you can deduct the expense without actually getting the evidence. But if you don't get the evidence within a reasonable time, your entitlement to the deduction ceases. If you have already deducted the expense, your assessment may be amended to disallow the deduction.

    900-110(3)    
    Even if you only get written evidence of the expense after the end of the income year, you deduct the expense for that income year, not the income year in which you get the evidence.

    SECTION 900-115   Written evidence from supplier  

    900-115(1)    


    You may use this set of rules for any type of expense except the decline in value of a *depreciating asset.

    900-115(2)   
    You must get a document from the supplier of the goods or services the expense is for. The document must set out:


    (a) the name or business name of the supplier; and


    (b) the amount of the expense, expressed in the currency in which it was incurred; and


    (c) the nature of the goods or services; and


    (d) the day the expense was incurred; and


    (e) the day it is made out.

    900-115(3)    
    There are 2 exceptions to these requirements:


    (a) if the document does not show the day the expense was incurred, you may use a bank statement or other reasonable, independent evidence that shows when it was paid;


    (b) if the document the supplier gave you does not specify the nature of the goods or services, you may write in the missing details yourself before you lodge your *income tax return for the income year.

    900-115(4)    
    The document must be in English. However, if the expense was incurred in a country outside Australia, the document can instead be in a language of that country.

    SECTION 900-120   Written evidence of depreciating asset expense  

    900-120(1)    
    You may use this set of rules only for a *depreciating asset expense.

    900-120(2)    
    You must get evidence of the original acquisition of the *depreciating asset. It must be a document that you get from the supplier of the asset and that specifies:


    (a) the name or business name of the supplier; and


    (b) the cost of the asset to you; and


    (c) the nature of the asset; and


    (d) the day you acquired the asset; and


    (e) the day it is made out.

    900-120(3)    
    However, if the document the supplier gave you does not specify the nature of the asset, you may write in the missing details yourself before you lodge your *income tax return for the income year in which you first claim a deduction for the decline in value of the asset.

    900-120(4)    
    If you don't get the document in time, for example because you only decided to use the asset for income-producing purposes several years after you acquired it, there are rules that might help you in Subdivision 900-H (Relief from effects of failing to substantiate).

    900-120(5)    


    The document must be in English. However, if you *imported the asset into Australia, the document can instead be in a language of the country from which the asset was originally exported.

    SECTION 900-125   Evidence of small expenses  

    900-125(1)    
    If your expense is small, and you have a small total of small expenses, you can make a record of the expenses instead of getting a document from the supplier.

    900-125(2)    
    Each expense must be $10 or less, and the total of all your expenses that:


    (a) are each $10 or less; and


    (b) you incurred in the income year and wish to deduct; and


    (c) you must get written evidence for under this Division;

    must be $200 or less. These limits can be increased from time to time by regulations made under section 909-1 .


    900-125(3)    


    If the expense is not the decline in value of a *depreciating asset, you must get a document with the same information as required by section 900-115 , except that you may create the document and record all the details yourself. You must do so as soon as possible after incurring the expense.

    900-125(4)    


    If the expense is the decline in value of a *depreciating asset, you must, as soon as possible after the last day of the income year, record in a document the following:


    (a) the nature of the property;


    (b) the amount of the decline in value;


    (c) who made the record;


    (d) the day the record is made.


    900-125(5)    
    A record must be in English.

    SECTION 900-130   Evidence of expenses considered otherwise too hard to substantiate  

    900-130(1)    
    If the Commissioner considers it unreasonable to expect you to have got written evidence of an expense in any other way permitted by this Subdivision, you can use the method in section 900-125 to get written evidence of your claim.

    900-130(2)    
    The expense may be more than $10 and does not count towards the $200 limit in section 900-125 .

    SECTION 900-135   Evidence on a payment summary  

    900-135(1)    


    If the nature and amount of a *work expense are shown on your copy of a *payment summary given to you by your employer, you can use the copy as written evidence of the expense.
    Note:

    This Division also applies to entities that are not employers, but pay (or are liable to pay) withholding payments covered by subsection 900-12(3) .


    900-135(2)    


    Expenses of the same nature need not be separately itemised; it is acceptable if they are totalled together on the *payment summary.

    Subdivision 900-F - Travel records  

    SECTION 900-140   What this Subdivision is about  

    This Subdivision tells you how to keep travel records. A travel record is a record of activities you undertake during your travel.

    SECTION 900-145  

    900-145   Purpose of a travel record  
    The purpose of a travel record is to show which of your activities were undertaken in the course of producing your assessable income, so that your losses or outgoings, or portions of them, can be attributed to income-producing purposes.

    Operative provisions

    SECTION 900-150   Recording activities in travel records  

    900-150(1)    
    You record an activity by specifying in a diary or similar document:


    (a) the nature of the activity;


    (b) the day and approximate time when it began;


    (c) how long it lasted;


    (d) where you engaged in it.

    900-150(2)    
    An activity must be recorded before it ends, or as soon as possible afterwards. Each entry must be in English.

    SECTION 900-155   Showing which of your activities were income-producing activities  

    900-155(1)    
    You need not record an income-producing activity. But if you don't, the activity cannot be taken into account in working out the extent to which you can deduct an expense you incur for the travel.

    Example:

    If you fly to Los Angeles for the sole purpose of attending a 7 day conference, but you don't record the conference in your travel record, you cannot deduct the cost of the air fare. This is so even if you have written evidence that you paid the fare (eg a receipt), as required by Subdivision 900-E .


    900-155(2)    
    You don't need to record any other kind of activity, although you may do so.

    Subdivision 900-G - Retaining and producing records  

    SECTION 900-160   What this Subdivision is about  

    This Subdivision tells you how long you need to retain records of an expense and when you have to produce those records.

    SECTION 900-165  

    900-165   The retention period  
    Whenever you are required to retain records of an expense under this Division or Division 28 , you need to retain the records for 5 years.

    Operative provisions

    SECTION 900-170  

    900-170   Extending the retention period if an expense is disputed  
    The *retention period is automatically extended if one of the following types of dispute relating to the expense is unresolved when the 5 years end:


    (a) an objection;


    (b) a review or appeal arising from an objection;


    (c) a request for amendment of an assessment.

    The extension lasts until the dispute is resolved.

    SECTION 900-175   Commissioner may tell you to produce your records  

    900-175(1)    
    The Commissioner may give you a written notice telling you to produce records of expenses specified in the notice. The records must be ones that you have to retain for the *retention period: you do not have to produce records if the retention period for those records is over.

    900-175(2)    
    The notice must give you 28 days or more to comply, starting on the day after the notice is given. The Commissioner may allow you more time to comply with the notice.

    SECTION 900-180   How to comply with a notice  

    900-180(1)    
    To comply with the notice, you must produce to the Commissioner, for each of the expenses, the material that this Division or Division 28 requires you to retain during the *retention period.

    900-180(2)    
    You must also produce a summary that, for each expense for which you produce written evidence (see Subdivision 900-E ):


    (a) notes the expense; and


    (b) has a cross-reference to the written evidence of the expense; and


    (c) summarises the particulars set out in the written evidence; and


    (d) if the expense was in a foreign currency - shows the amount of the expense in Australian currency.

    The summary must be in English in a form approved by the Commissioner.


    SECTION 900-185   What happens if you don't comply  

    900-185(1)    
    If you do not comply with a notice for a particular expense, you cannot deduct the expense. If you have already deducted it, your assessment may be amended to disallow the deduction.

    900-185(2)    
    You do not commit an offencemerely by not complying with the notice, despite section 8C of the Taxation Administration Act 1953 .

    Subdivision 900-H - Relief from effects of failing to substantiate  

    SECTION 900-195  

    900-195   Commissioner's discretion to review failure to substantiate  
    Not doing something necessary to follow the rules in this Division does not affect your right to a deduction if the nature and quality of the evidence you have to substantiate your claim satisfies the Commissioner:


    (a) that you incurred the expense; and


    (b) that you are entitled to deduct the amount you claim.

    SECTION 900-200  

    900-200   Reasonable expectation that substantiation would not be required  
    Not doing something necessary to follow the rules in this Division does not affect your right to deduct an amount if the only reason was that you had a reasonable expectation that you would not need to do it in order to be able to deduct that amount.

    SECTION 900-205   What if your documents are lost or destroyed?  

    900-205(1)    
    If you have a complete copy of a document that is lost or destroyed during the *retention period, it is treated as the original from the time of the loss or destruction.

    900-205(2)    
    If you don't have such a copy, but the Commissioner is satisfied that you took reasonable precautions to prevent the loss or destruction, the rest of this section explains what to do.

    900-205(3)    
    If the lost or destroyed document was a travel record, log book or other document that is not written evidence of an expense under Subdivision 900-E , you do not need to replace it; your deduction is not affected by your failing to retain or produce the document.

    900-205(4)    
    If the lost or destroyed document was written evidence, you must try to get a substitute document that meets all the original requirements (except the time limit for getting the original).

    900-205(5)    
    If you succeed, your deduction is not affected by your failing to retain or produce the original document. The substitute document is treated as the original from the time of the loss or destruction.

    900-205(6)    
    If it is not reasonably possible to succeed, your deduction is not affected by your failing to retain or produce the original document.

    900-205(7)    
    If it is reasonably possible for you to get a substitute document, but you don't get one, this section does not protect you from the consequences of failing to retain or produce the original.

    Subdivision 900-I - Award transport payments  

    SECTION 900-210   What this Subdivision is about  

    This Subdivision tells you when you can deduct an expense related to an award transport payment without getting written evidence or keeping travel records.

    Operative provisions

    SECTION 900-215   Deducting an expense related to an award transport payment  
    The exception

    900-215(1)    
    If:


    (a) you are paid one or more *award transport payments in the income year; and


    (b) the total of the *transport expenses, to the extent that they relate to the award transport payments, that you incur during any income year and claim as deductions for any income year is no more than the total amount of the payments; and


    (c) those transport expenses qualify as a deduction under some provision of this Act outside this Division;

    then you can deduct those transport expenses without getting written evidence or keeping travel records.

    To find out whether an expense qualifies as a deduction under this Act, see Division 8 (Deductions).



    Increases to amounts payable under industrial instrument must be ignored

    900-215(2)    
    For each *award transport payment, you can deduct no more than the amount you could have deducted if the *industrial instrument the payment is under were still in force as it was on 29 October 1986. If your claim exceeds this amount, you cannot use the exception for the expenses.

    SECTION 900-220   Definition of award transport payment  
    Award transport payment

    900-220(1)    
    An award transport payment is a *transport payment covering particular travel that was paid under an *industrial instrument that was in force on 29 October 1986.

    Transport payment

    900-220(2)    
    A transport payment is an amount your employer pays you, or is to pay you, for travel by you in the course of working for the employer that is:


    (a) an allowance (or part of an allowance) for the sole or main purpose of covering your *transport expenses; or


    (b) a reimbursement to which section 15-70 applies that is for the whole or a part of a *car expense. However, an amount is not a transport payment if it is, or is part of, a *travel allowance.

    Note:

    This Division also applies to entities that are not employers, but pay (or are liable to pay) withholding payments covered by subsection 900-12(3) .



    Transport expense

    900-220(3)    


    A transport expense is a loss or outgoing to do with transport, including the decline in value of a *depreciating asset used in connection with transport, but not including a loss or outgoing for accommodation or for food or drink, or expenditure incidental to transport.

    SECTION 900-225  

    900-225   Substituted industrial instruments  
    An *industrial instrument that comes into force in substitution for another industrial instrument is taken to be a continuation of the original instrument.

    SECTION 900-230   Changes to industrial instruments applied for before 29 October 1986  

    900-230(1)    
    Changes made to an *industrial instrument after 29 October 1986 are taken to have been made on 29October 1986 if they were made in response to an application made on or before 29 October 1986 that sought increases in *transport payments.

    900-230(2)    
    If the application was amended after 29 October 1986, the alterations made to the *industrial instrument count as being made on 29 October 1986 only if they did not result in increases in *transport payments that were greater than increases in those payments sought by the application as at 29 October 1986.

    SECTION 900-235  

    900-235   Changes to industrial instruments solely referable to matters in the instrument  
    Changes made to an *industrial instrument after 29 October 1986 are taken to have been made on 29 October 1986 if the whole amount of the change is determined solely by reference to matters that were contained in the industrial instrument on 29 October 1986.

    SECTION 900-240  

    900-240   Deducting in anticipation of receiving award transport payment  
    If:


    (a) you have incurred a *transport expense during an income year; and


    (b) when you lodge your *income tax return for the income year, you reasonably believe that you will later receive an *award transport payment to cover the expense;

    you may deduct the expense without getting written evidence or keeping travel records.

    900-240(2)    
    (Repealed by No 75 of 2010)


    SECTION 900-245  

    900-245   Effect of exception in this Subdivision on exception for small total of expenses  
    A *transport expense that section 900-215 lets you deduct without getting written evidence or keeping travel records does not count towards the $300 limit in section 900-35 .

    Note:

    Section 900-35 tells you that if the total of all the work expenses that you want to deduct is $300 or less, you can deduct them without getting written evidence or keeping travel records.

    SECTION 900-250   Effect of exception in this Subdivision on methods of calculating car expense deductions  

    900-250(1)    


    If the exception in this Subdivision lets you deduct, without getting written evidence or keeping travel records, losses or outgoings ( exempt losses or outgoings ) that are or include *car expenses, or parts of *car expenses, your use of the 2 methods for calculating deductions for car expenses for the *car is affected.

    You may elect not to use the exception

    900-250(2)    


    However, if you do not want your use of the 2 methods to be affected, you may elect not to use the exception in this Subdivision for the *award transport payments you are paid in the income year. If you so elect, the rest of this section does not affect you.

    " Cents per kilometre " method

    900-250(3)    
    You can still use the " cents per kilometre " method (see Subdivision 28-C ) of deducting *car expenses you incurred for the *car in the income year. However, the kilometres the car travelled during the income year in the course of travel covered by the *award transport payment or payments are not counted as *business kilometres.

    900-250(4)    
    (Repealed by No 162 of 2015)



    " Log book " method

    900-250(5)    
    You can still use the " log book " method (see Subdivision 28-F ) of deducting *car expenses you incurred for the *car in the income year. If you do:


    (a) the kilometres the car travelled during the income year in the course of travel covered by the *award transport payment or payments are not counted as *business kilometres; and


    (b) in working out the amount (if any) you can deduct for such a car expense that consists partly of an exempt loss or outgoing, Subdivision 28-F is applied to the whole of the car expense, without excluding the part that consists of an exempt loss or outgoing.

    PART 5-35 - MISCELLANEOUS  

    Division 905 - Offences  

    SECTION 905-5  

    905-5   Application of the Criminal Code  


    Chapter 2 of the Criminal Code applies to all offences against this Act.
    Note:

    Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

    Division 909 - Regulations  

    SECTION 909-1   Regulations  

    909-1(1)    
    The Governor-General may make regulations prescribing matters that:


    (a) this Act requires or permits to be prescribed; or


    (b) are necessary or convenient to prescribe for carrying out or giving effect to this Act.

    909-1(2)    
    The regulations may prescribe penalties for offences against the regulations. A penalty may not exceed a fine of 5 penalty units.

    Note:

    Section 4AA of the Crimes Act 1914 deals with penalty units.