Although the objection period is two years, work-related records must be kept for five (5) years from the date of the relevant tax return.

The three requirements for claiming a work-related tax deduction are:

1. The taxpayer must have spent the money themselves.
2. The expense must directly relate to the earning of the person’s income.
3. The person must keep a record (usually a receipt) to prove the claim.

Deductions may be disallowed if the correct record is not kept. Noting details on a bank statement may be insufficient without other records.

Many people believe that taxpayers can automatically claim $300 for work-related expenses without proof. While work-related expenses less than $300 may not need receipts, taxpayers must be able to show they spent the money and how the claim was calculated.

Record-keeping requirements for working-from-home expenses differ depending on the method used:

• Fixed Rate Method – taxpayers need a record of the actual number of hours worked from home for the full period from 1st July until 30th June. Taxpayers will also need one record for each of the running expenses included in the fixed rate. Separate records must be kept for any claims not covered by the fixed rate.
• Actual Cost Method – taxpayers need to keep records for running expenses they incurred, the depreciating assets they bought, and how they apportion work-related use for their expenses and depreciating assets.

Car Expenses – to claim a deduction, the taxpayer must:

1. Own or lease the car.
2. The expenses must be for work-related trips.
3. The taxpayer must have spent the money themselves and not been reimbursed.
4. The taxpayer must have the required records.

Vehicles with a carrying capacity of one tonne or more or a carrying capacity of nine or more passengers are not included in the definition of a car, so they must be claimed separately as travel expenses.

The required records for car expenses depend on the method used:

• Logbook Method – involves keeping a logbook that shows the work-related trips for a continuous period of 12 weeks. The 12 weeks should be representative of travel throughout the year. The logbook is valid for up to five years. Receipts or other records for expenses must be kept to calculate the work-related amount.
• Cents Per Kilometre Method – allows taxpayers to claim a set rate per kilometre (updated annually). The rate is all-inclusive of motor vehicle expenses and includes depreciation. Taxpayers are limited to 5,000 kilometres for each car they use. Trips directly between multiple workplaces or to perform work-related duties can be claimed. Trips from home to work are usually not claimable, except in limited circumstances. For instance, some medical professionals may claim where they are effectively on duty from the time they leave home. Some taxpayers may claim for transporting bulky goods; however, if storage facilities are available at work, this claim may be disallowed.