INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision F - Substantiation of certain expenses of years of income up to and including 1993-94  

SECTION 82KZ   OTHER EXPENSES  

82KZ(1)   [Requirements for deduction]  

Subject to this Subdivision, a deduction is not allowable under this Act in respect of an expense incurred by a taxpayer, being -

(a) an eligible expense in relation to a meal allowance or in relation to a travel allowance; or

(b) an employment-related expense or a travel expense,

unless:

(c) if the expense is in respect of fuel or oil in relation to a motor vehicle:

(i) odometer records are maintained by or on behalf of the taxpayer for the period during which the motor vehicle is held by the taxpayer during the year of income; or

(ii) documentary evidence of the expense is obtained by or on behalf of the taxpayer; or

(d) in any other case - documentary evidence of the expense is obtained by or on behalf of the taxpayer.

82KZ(2)   [Travel expenses diary]  

Subject to this Subdivision, a deduction is not allowable under this Act in respect of an expense incurred by a taxpayer, being -

(a) an eligible expense in relation to a travel allowance; or

(b) a travel expense,

unless, in relation to each activity engaged in by the taxpayer -

(c) while undertaking the travel to which the expense relates; and

(d) in the course of producing assessable income of the taxpayer,

the taxpayer makes in the English language in a diary or similar document, before, at the time of, or as soon as reasonably practicable after, the conclusion of the activity, an entry setting out particulars of -

(e) the date on which the entry was made;

(f) the place where the activity was undertaken;

(g) the date and approximate time when the activity commenced;

(h) the duration of the activity; and

(j) the nature of the activity.

82KZ(3)   [Entry not made in diary]  

Where a taxpayer -

(a) while undertaking travel, engages in an activity in the course of producing assessable income of the taxpayer; and

(b) does not make as mentioned in subsection (2) an entry relating to the activity, being an entry of the kind referred to in that subsection,

then, for the purpose of determining -

(c) whether a deduction is allowable to the taxpayer under this Act in respect of a travel expense, or an eligible expense in relation to a travel allowance, being an expense that relates to the travel; and

(d) if a deduction is so allowable, the amount of the deduction,

the activity referred to in paragraph (a) shall be deemed not to have been engaged in by the taxpayer in the course of producing assessable income of the taxpayer.

82KZ(4)   [Overtime meal or travel allowance]  

Where -

(a) the amount of -

(i) an overtime meal allowance paid or payable to a taxpayer (in this subsection referred to as the relevant taxpayer ); or

(ii) a travel allowance that was paid or is payable to a taxpayer (in this subsection also referred to as the relevant taxpayer ) and relates solely to travel by the taxpayer within Australia,

(whether or not the allowance was paid or is payable under an industrial instrument) is, in the opinion of the Commissioner, reasonable having regard to the total of the amounts of the outgoings that it would be reasonable for a taxpayer to whom the allowance was paid or is payable to incur -

(iii) if subparagraph (i) applies - in respect of the food and drink to which the allowance relates; or

(iv) if subparagraph (ii) applies - in respect of the travel to which the allowance relates, in respect of accommodation, the purchase of food and drink, and expenditure incidental to the travel; and

(b) the total of the amounts of the eligible expenses in relation to the allowance incurred by the relevant taxpayer and claimed by the relevant taxpayer as deductions in respect of the year of income in which the expenses were incurred does not exceed the amount of the allowance,

this section and section 82KZA do not apply, and shall be deemed never to have applied, in relation to the relevant taxpayer in relation to any of the expenses referred to in paragraph (b).

82KZ(5)   [Reasonable travel allowances relating to overseas travel]  

Where:

(a) a travel allowance in respect of the purchase of food and drink and expenditure incidental to travel (whether or not the allowance is also in respect of accommodation) was paid or is payable (whether or not under an industrial instrument) to a taxpayer (in this subsection called the relevant taxpayer );

(b) the allowance relates solely or principally to travel by the relevant taxpayer outside Australia;

(c) the amount of the allowance in respect of the purchase of food and drink and expenditure incidental to travel is, in the opinion of the Commissioner, reasonable having regard to the total of the amounts of the outgoings that it would be reasonable for a taxpayer to whom the allowance was paid or is payable to incur, in respect of the travel to which the allowance relates, in respect of the purchase of food and drink and expenditure incidental to the travel; and

(d) the total of the amounts of the eligible expenses in respect of the purchase of food and drink and expenditure incidental to travel, in relation to the allowance, incurred by the relevant taxpayer and claimed by the relevant taxpayer as deductions in respect of the year of income in which the expenses were incurred does not exceed the amount of the allowance in respect of the purchase of food and drink and expenditure incidental to travel;

the following provisions have effect in relation to the relevant taxpayer in relation to the expenses referred to in paragraph (d):

(e) subsection (1) does not apply, and shall be deemed never to have applied;

(f) section 82KZA applies, and shall be deemed always to have applied, as if:

(i) paragraph (1)(a) of that section were omitted;

(ii) subsections (2) and (3) of that section were omitted and the following subsections were substituted:
``(2) Where subsection 82KZ(5) applies in relation to a taxpayer in relation to a travel allowance, the Commissioner may, except where subsection 82KZ(6) also applies in relation to the allowance, by notice in writing served on the taxpayer, require the taxpayer to produce to the Commissioner, within a specified period of not less than 28 days, the travel diary relating to the travel to which the expenses referred to in paragraph 82KZ(5)(d) relate.
(3) Where:

(a) at the time when the notice is served, the retention period in relation to any of the expenses has not ended; and

(b) the taxpayer does not produce the travel diary to the Commissioner within the period specified in the notice or such longer period as the Commissioner allows;

a deduction is not allowable, and shall be deemed never to have been allowable, under this Act in respect of the expense.'';

(iii) subsection (6) of that section were omitted; and

(iv) paragraph (7)(g) of that section were amended by omitting ``paragraphs (1)(c) and (3)(f)'' and substituting ``paragraph (1)(c) and subsection (3)'';

(g) section 82KZBB applies, and shall be deemed always to have applied, as if paragraph (1)(g) of that section were amended by omitting ``section 82KZ and paragraphs 82KZA(1)(a), (aa) and (c) and (3)(ba), (c), (d) and (f) do not apply'' and substituting ``section 82KZ, paragraphs 82KZA(1)(a), (aa) and (c) and subsection 82KZA(3) do not apply''.

82KZ(6)   [Crew members on international flights]  

Where:

(a) a travel allowance was paid or is payable to a taxpayer;

(b) the allowance relates solely or principally to travel outside Australia by the taxpayer as the pilot, flight engineer, flight attendant, or other member of the crew, of an aircraft; and

(c) the total of the amounts of the eligible expenses, in relation to the allowance, incurred by the taxpayer and claimed by the taxpayer as deductions in respect of the year of income in which the expenses were incurred does not exceed the amount of the allowance;

the following provisions have effect in relation to the taxpayer in relation to the expenses referred to in paragraph (c):

(d) subsections (2) and (3) do not apply, and shall be deemed never to have applied;

(e) section 82KZA applies, and shall be deemed always to have applied, (in addition to any application of that section to the taxpayer in accordance with subsection (5) of this section) as if paragraph (1)(c) of that section were omitted and, where apart from this subsection subsection (2) of that section applies, paragraph (3)(f) of that section were omitted.