• • Evidence to support expense
  • Substantiation
    • Log book method
    • Cents per kilometre

Evidence to support expense

If you incurred work-related car expenses and wish to claim these expenses 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 your employment duties including information about:
    • the need to transport any bulky equipment to and from the workplace for work purposes
    • the requirement to travel to alternate work places
    • letter(s) from your employer(s) with a contact name and telephone number to confirm the details contained therein:
    • why you were required to use your car for the purpose of carrying out your employment duties
    • details of any reportable fringe benefits, allowances or reimbursement to compensate your expenses incurred
    • details of ownership, leasehold or hire purchase of the motor vehicles for which you have claimed a deduction

Substantiation

To substantiate the deduction you may be asked to keep the following records.

Log book method

Required records:

• • current logbook and odometer records completed by you that are representative of the pattern of use of the motor vehicle for the period for which expenses are being claimed
  • purchase or lease documents for the car for which you are claiming a deduction
  • car registration certificate or papers for the period that you are claiming car expenses
  • details of how the claim was calculated, a description of each item and the amount claimed
  • odometer records or receipts for fuel and oil costs
  • receipts for all other car expenses

Cents per kilometre

Records required:

• • purchase or lease documents for the car for which you are claiming a deduction
  • evidence, such as a diary, to show that business kilometres were reasonably calculated
  • car registration certificate or papers for the period that you are claiming car expenses
  • details of the business travel undertaken during the income year, from such sources as work time sheets or work diaries. These details may include the purpose of the travel undertaken, the frequency of any work-related travel, and the number of kilometres travelled for work-related purposes. If travel undertaken between your home and place of work is included, you must be able to show why such travel is deemed to be business travel