FBT – CAR EXPENSES UP TO $200 DO NOT HAVE TO BE SUBSTANTIATED
11 May 2006
The Tax Office confirmed that car cleaning costs would be covered by the definition of documentary evidence in Section 136(1) of the FBTAA to allow the $10/$200 concession in section 9(2)(e)(ii(B) of the FBTAA.
The following is noted:
It is accepted that car cleaning costs are a car maintenance expense and as such a ‘car expense’.
A ‘car expense’ (other than car expenses in respect of fuel and oil for the car, requires ‘documentary evidence’ and is obtained by the person incurring the expense and given to the employer before the declaration date.
‘Documentary evidence’ means a document that would be:
a document that would constitute written evidence of the expense obtained if the expense were a work expense.
There is a concession for small expenses which provides that you can make your own record of expenses that are less than $10 each to a total of $200 instead of getting a document from the supplier. The record must be created as soon as possible after incurring the expense and show all the details required.
There is a further concession for expenses where it is unreasonable to expect written evidence to be obtained. This section provides that you can make your own record of an expense, the expense may be more than $10 and does not count towards the $200 limit for small expenses.
Examples of where the Commissioner exercises this discretion include toll bridge fees, parking meter fees,
In relation to coin in the slot car wash expenses, the following documents could satisfy the conditions of ‘documentary evidence’:
the car wash expense is less than $10 and the total of all small expenses incurred by the taxpayer in the income year substantiated are less than $200. Instead of getting a receipt the taxpayer records the relevant details of the expense in a diary, and
the car wash operator does not provide receipts and it would be unreasonable to expect a receipt to be provided. The taxpayer records the relevant details of the expense in a diary.