When don’t you need to keep receipts?

Ah so you thought you always needed to keep receipts right? It’s 100% recommended but here are some reasons why you dont need them…

Total work expenses $300 or less

If your total claim for work expenses is $300 or less, you can claim a deduction without written evidence. You must be able to show you spent the money and how you calculate the amount of your claim. The $300 deduction limit for work expenses doesn’t apply to claims for car expenses, meal allowances, award transport payments allowance, or travel allowance expenses.

Total laundry expenses $150 or less

If your total claim for laundry expenses is $150 or less (excluding dry-cleaning expenses), you can claim a deduction without written evidence. You must be able to show you spent the money and how you calculate the amount of your claim.

Small expense receipts

If you are unable to get a receipt from a supplier, you may still be able to claim a deduction if you have evidence you incur the expense. Small expenses are expenses you incur that are $10 or less, as long as your total claim for small expenses is $200 or less.

You can still claim a deduction if you can make a record of the expenses. Your record must be made as soon as possible after incurring the expense and provide details of:

• the name or business name of the supplier
• the amount of the expense or cost of the asset
• the nature of the goods or services you buy
• the date you buy the goods or services
  the date the record was made.

Hard to get receipts

If you incur expenses where it is hard to get receipt, you can make a record of the expenses instead of getting a document from the supplier. Hard to get receipt expenses can be more or less than $10 and are excluded from the $200 limit for small expenses.

The record you keep must be made as soon as possible after the expense is incurred and provide details the same as above.

Unable to get a receipt from the supplier

The ATO may grant you relief from keeping records, if the nature and quality of your evidence shows you spent the money and are entitled to claim a deduction.

Your evidence may include:

• a bank or credit card statement that shows the amount that was paid
• when and to who amounts were paid
• other documents that outline the nature of the goods or services
• a written record in your work diary.

Reasonable expectation that records weren’t required

If you don’t have the records you need to claim a deduction, the ATO may grant relief from substantiation (keeping records) if:

• there is sufficient evidence to indicate that you incurred the expense and it is deductible
• you can show the only reason you didn’t keep records was a genuine belief that you did not need to keep records
• your belief that you did not have to keep records was reasonable in all the circumstances.

Lost or destroyed records

If your records are accidentally lost or destroyed, you may be able to claim a deduction for certain expenses. For example, your records are stolen during a burglary or destroyed in a disaster.

You can claim a deduction, if you can provide a complete copy of the lost or destroyed records – you can treat these records as the original from the time of the loss or destruction.

If you are unable to get a complete copy or a substitute document that meets all the original requirements for the record, the ATO may also grant relief from substantiation (keeping records).

This may occur where:

• there is sufficient evidence to indicate that you incurred the expense
• it is deductible
• you can provide evidence that the loss or destruction of your records occurred
• documents have been lost or destroyed despite your taking reasonable precautions.
• you have tried and get a substitute record that meets all the original requirements for the record, and
• you can show you made an effort, or there were reasonable grounds to believe your efforts wouldn’t be successful, to get a substitute document
• it was not reasonably possible for you to get a substitute document.