ATO CRACKDOWN ON WORK-RELATED EXPENSES
Substantiation of expense
Before an employee can claim a deduction for a work related expense, the employee must substantiate the expense by obtaining written evidence. This is a receipt or invoice or similar document that contains the prescribed information. The document must include;
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Date expense incurred
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Name of supplier
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Amount
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Nature of goods or serviced purchased
A credit card statement will include (a) to (c) and mostly (d). If the nature of goods or services provided is note clear on the credit card statement, you should make an annotation on the credit card statement each month and keep as your substantiation record of expenses to be claimed.
Rate per kilometer method
A taxpayer must have sufficient evidence to make a reasonable estimate of the business kilometres traveling during the year.
A diary record of regular trips would include the number of regular trips to specified locations and distance travelled.