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Travel expenses – overnight travel

    • Evidence to support expense
    • Substantiation

Evidence to support expense

If you incurred work-related overnight travel expenses and wish to claim these as a deduction, the nexus has to be established. If your tax return is selected for a review or an audit, you may be asked to provide the following records to the ATO:

    • details of employment duties, including information about the requirements to undertake overnight travel for work-related purposes
    • a letter from your employer(s), including contact name and telephone number, to confirm:
      • why you were required to undertake overnight travel in the course of carrying out your employment duties
      • details of any relevant reportable fringe benefits, or reimbursements to compensate you for expenses incurred
      • details of specific travel allowances paid to you

Substantiation

If you received a bona fide travel allowance and your claim for a deduction does not exceed the Commissioner’s reasonable allowance amount, you may also be required to show the basis for determining the amount of your claim and provide information that shows that the expense was actually incurred for work-related purposes. The evidence required in these situations will vary according to individual circumstances and the nature of the expense.

Written evidence is required for overseas accommodation expenses regardless of the length of time spent overseas.

If you received a bona fide travel allowance and your claim for a deduction exceeds the Commissioner’s reasonable allowance amount, you must fully substantiate all travel claims by providing the following records:

    • details and evidence to support the type and specific amounts of allowance received for travel expenses, such as accommodation, meals and incidentals
    • details of specific overnight travel undertaken, including:
      • dates or period travel was undertaken
      • specific purpose of travel
      • where required, a travel record (diary) as specified in Subdivision 900-F of the ITAA 1997 (refer also Taxation Ruling TR 2004/6)
    • evidence that you actually undertook the travel and incurred the accommodation and meal expenses, such as receipts or other documents

If you did not receive a bona fide travel allowance and received a token travel allowance, you may be asked to keep the following records:

    • details of specific overnight travel undertaken, including:
      • dates or period travel was undertaken
      • specific purpose of travel
      • where required, a travel record or diary as specified in Subdivision 900-F of the ITAA 1997 (refer also Taxation Ruling TR 2004/6)
      • sufficient information to ascertain how specific expenses were incurred in the course of earning assessable income
      • list of all items included in the claim for travel expenses and receipts or other documentary evidence for each item.

Travel expenses – award transport payments

 

Evidence to support expense

To establish the nexus and substantiate your claim for a deduction, you may be asked to provide:

    • information to demonstrate receipt of an award transport payment under a specific award that was in force on 29 October 1986
    • if the claim exceeds the award transport payment, evidence to support the total claim
    • details of the expenses incurred that were covered by that award transport payment

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