Substantiation rules


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 3 - Substantiating car expenses  


3-3(1)   [Retention period]  

Once you have the material required by this Division, 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 Division 7 . The period for which you must retain it is called the retention period .

3-3(2)   [Commencement of retention period]  

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.

3-3(3)   [Extension of period]  

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 7-2 .

3-3(4)   [Failure to retain]  

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.

3-3(5)   [Lost material]  

If you lose any of the material, there are rules that might help you in section 8-3 .


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