Tax Deductions Without Receipts in Australia: What You Need to Know

Lost your receipts? Faded beyond recognition? Don’t panic! While keeping receipts is always the safest bet for tax deductions, there are still ways to claim certain expenses without them. 

Whether you are a small business owner, a freelancer, or work in an occupation that comes with certain related expenses, you may be able to reduce your tax burden even if you forget to keep receipts. 

This guide will walk you through tax claims without receipts in Australia, helping you maximise your refund while staying compliant with Australian Taxation Office (ATO) regulations.

What can I claim on a tax return without receipts in Australia?

The ATO generally requires receipts for tax deductions. However, there are some exceptions where you can claim without providing physical receipts. Note that you may still need to provide a justification and records of these expenses, which we will discuss in more detail later on in this article. 

Claims without receipts include $300 worth of small work-related business expenses as well as additional categories such as laundry and travel mileage. Below are some of the main categories for Australian tax claims without receipts. 

Clothing, laundry, and dry-cleaning expenses

You can claim $150 or less for laundry, dry-cleaning, or work clothing expenses without receipts. However, you must be able to explain how you calculated the amount if asked by the ATO. The rule of thumb is that each load of laundry can be claimed at a rate of $1. 

Example: John wears a company uniform and washes it twice a week. He calculates his laundry expenses to be $140 for the year based on the ATO’s guidelines. Since this is under $150, he can claim it without receipts, but he keeps a record of his calculations.

Protective equipment

For small expenses related to protective equipment, you can claim without receipts if the total doesn’t exceed $300. Again, you should still keep a record of these purchases.

Example: Sandy is a lifeguard and purchases sun-protection clothing with a UPF sun protection rating. In total, she spends $85. She can claim this amount without a receipt, but she should have a record of her purchase. 

Car expenses using the kilometre method

Commuters can use the cents per kilometre method to claim car expenses. For this, you don’t need to provide receipts, and the amount is in addition to the $300 worth of small claims. You can claim up to a maximum of 5,000 kilometres for work-related use. 

Example: Lisa uses her personal car for work travel, driving 4,000 km for work throughout the year. She keeps a logbook of these trips but doesn’t have fuel receipts. Using the cents per kilometre method (85 cents per km for 2023-24), she can claim $3,400 without needing receipts.

Education and training

You may be able to claim self-education expenses without receipts. This includes textbooks, stationery, home office expenses related to studies, or travel between your work and place of study. While specific receipts may not always be necessary, you should be prepared to explain how any claimed education expenses relate directly to your work.

Example: Alex buys second-hand textbooks for $100. There is no receipt, but they can still claim the amount provided it’s justified and relevant to their work. 

Membership and Union Fees

Membership and union fees can often be claimed without receipts if they are itemised on your income statement or another summary provided by your employer. 

Example: Alinta is an accountant in Melbourne and is a member of CPA Australia. Her employer pays her member fees and provides her with a letter to that effect. This can be used to claim the amount on her taxes. 

Professional Subscriptions 

You can claim all sorts of professional subscriptions to magazines, newspapers, and online resources without receipts, provided you have another type of record. 

Example: Michael pays for several work-related magazine subscriptions totaling $250 for the year. The charges appear on his credit card statement, which he uses as evidence instead of individual receipts.

Stationery and Computer Items

You can claim expenses for stationary and computer items without receipts if you have a bank or credit card statement showing the purchase. 

Example: Sarah works from home occasionally and purchases small office supplies like pens, notebooks, and printer ink throughout the year. She doesn’t keep receipts but tracks these expenses, which total $180 for the year. She can claim this amount as a work-related expense without receipts since it’s under $300.

Small Tools for Tradies

Tradespeople can claim expenses for small tools, up to $300 per year, without a receipt. 

Example: Emma is an electrician who occasionally buys small tools costing less than $10 each. Over the year, she spends $195 on these items. She keeps a written record of each purchase with dates and amounts but doesn’t have receipts. She can claim this total since it’s under $200 for small expenses.

What you can’t claim without receipts in Australia

While there are some exceptions, it’s essential to understand that most tax deductions require supporting documentation. Here’s a list of items you typically can’t claim without receipts:

• Large purchases over $300
• Home office expenses that exceed the standard rate
• Self-education expenses beyond the basics
• Donations to non-registered charities
• Investment property expenses
• Work-related travel exceeding standard allowances
• Personal services income deductions

What qualifies as a small expense and hard-to-get receipts?

The ATO recognises that it’s not always practical to obtain and keep receipts. That’s why it allows smaller expenses or purchases where a receipt cannot be issued to be claimed without a receipt. That said, the ATO expects that you will have records of these expenses. 

Small expenses

You don’t need to keep receipts for small work-related expenses that are $10 or less as long as your total claim for these expenses doesn’t exceed $200. This might include items like newspapers, small stationery, coffee during work trips, and so on. 

Make sure, however, that you keep a list of these expenses with dates and where they were purchased in case of an ATO audit. 

Hard to get receipts 

For expenses where it’s challenging to obtain a receipt, you can make a record of the expense instead. Hard-to-get receipt expenses can be more or less than $10 and are excluded from the $200 limit for small expenses. 

As such, this provision applies to expenses of any amount, but you must record specific details, including the supplier’s information, cost, nature of goods or services, purchase date, and record date. 

Methods for keeping records

While you don’t need a physical receipt for the expenses discussed above, you still need to keep detailed records to avoid any issues when making your tax claim. 

1. Written records

For small expenses (under $10 each, up to a total of $200), you can keep a written record instead of receipts. Your records should include:

• What you purchased
• Where you purchased it
• How much you spent
• The date of purchase
• The date the record was made

2. Bank statements

You can also use bank statements instead of bank receipts when these clearly show the purchase amount. You need to annotate the statement with details about the purpose of your purchase. 

3. Diaries or logbooks

Maintaining a diary or logbook where you record details of small expenses can be an effective way to track your spending. This is particularly useful for tracking car expenses using the cents per kilometre method.

4. Electronic records

You can also simplify record-keeping by using ATO’s myDeductions app. This tool allows you to record business income, expenses, and vehicle trips, and you can upload this data directly to your tax return.

5. Replacement receipts

If you lose a receipt, you can sometimes obtain a replacement from the retailer. For online purchases, check your email or online account for a copy of the invoice.

Essential considerations for tax record-keeping

When keeping tax records, make sure you consider the following. 

• Accuracy: Ensure that all records are accurate and detailed enough to justify the expenses if the ATO requests verification.
• Consistency: Regularly update your records to avoid missing any expenses.
• Backup: Keep backups of electronic records to prevent loss due to technical issues.
• Compliance: Make sure your records comply with ATO requirements, such as English receipts and secure storage. 

By following these practices, you can effectively manage and claim small expenses on your tax return without needing physical receipts. Even so, it is best to maintain meticulous records to avoid any taxation issues in the future. 

FAQ

What is a $300 tax deduction without receipts?

The ATO has set a threshold where individuals can claim up to $300 in work-related expenses without receipts. If your work-related expenses do not exceed $300, you’re not required to provide receipts. That said, you may still need to explain the expenses if asked.

What can tradies claim on tax without receipts?

Tradies can claim small tools and equipment under $300 without receipts. However, they should still keep a record of these purchases and be prepared to explain how they relate to their work.

Can I write off expenses without receipts?

Yes, in some cases, you can write off expenses without receipts. However, these purchases should satisfy certain criteria and be properly recorded. For example, the expense needs to be linked directly to your profession. You must also have paid it from your personal account. 

These expenses include work-related expenses below $300, travel expenses using the cents per kilometre method, and laundry and work clothing expenses below $150, among others. 

What are small expense receipts?

Small expense receipts refer to purchases of $10 or less. You don’t need to keep receipts for these as long as your total claim for small expenses doesn’t exceed $200. However, you should still keep a record of these purchases.

How long do I need to keep receipts for tax returns?

The ATO recommends keeping receipts and other records for five years from the date you lodge your tax return. This ensures you have documentation if the ATO requests it during this period.

Final thoughts

While you can claim some tax deductions without receipts in Australia, it’s always best to keep detailed records of your expenses. The ATO is becoming increasingly strict about claims, and having proper documentation can save you from potential audits and penalties. 

Remember, when in doubt, consult with a qualified tax professional who can guide you through the complexities of tax deductions. Lawpath can help you ensure tax compliance while maximising your tax refund. Get in touch today!