INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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 |
If the exception in this Division lets you deduct, without getting written evidence or keeping travel records, expenses ( ``exempt expenses'' ) that are or include car expenses, or parts of car expenses, your use of the 4 methods for calculating deductions for car expenses for the car is affected.
9-9(2) You may elect not to use the exception.However, if you do not want your use of the 4 methods to be affected, you may elect not to use the exception in this Division 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.
9-9(3) ``Cents per kilometre'' method.You can still use the ``cents per kilometre'' method (see Division 3 of Schedule 2A ) 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.
9-9(4) ``12% of original value'' and ``one-third of actual expenses'' methods.You cannot use the `` 12% of original value'' method (see Division 4 of Schedule 2A ) or the ``one-third of actual expenses'' method (see Division 5 of Schedule 2A ) of deducting car expenses you incurred for the car in the income year.
9-9(5) ``Log book'' method.You can still use the ``log book'' method (see Division 6 of Schedule 2A ) 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 expense, Division 6 of Schedule 2A is applied to the whole of the car expense, without excluding the part that consists of an exempt expense.
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