You’ve got a valid tax deduction but can’t find the receipt. Sound familiar? Thankfully, there might still be some options for you. But there are rules, and the ATO expects you to be able to back up your claims with reasonable evidence.
Here’s what you need to know.
Three rules for claiming tax deductions in your individual tax return.
The Australian Taxation Office (ATO) has three rules when it comes to claiming tax deductions:
- You must have spent the money yourself and not been reimbursed;
- The expense must be directly related to earning your income;
- You must have a record to prove it.
In short, you can only claim a deduction for something you paid for yourself — and it must be directly connected to your work or business. You’ll also need to have some kind of record to back it up. Whether it’s accepted by the ATO often comes down to the type of expense and how clearly you can show it was work-related.
What counts as a receipt?
A receipt is the gold standard — ideally showing who you paid, what for, when, and how much.
Receipts are the required method of proof, however the ATO may grant relief from this requirement. Some of the other ways you could use to help demonstrate that you incurred a claimable expense are:
- Bank or credit card statements
- Invoices
- BPAY or online payment confirmations
- Vehicle logbooks
- Diary entries for small cash expenses (with sufficient details)
If you’ve lost the original receipt but can prove the expense in another way, you’re often still in the clear.
The $300 no-receipt rule
If you’re claiming work-related expenses, the ATO allows you to claim up to $300 in total (not each item) without needing to provide receipts. This means that if you don’t have your receipts for work-related purchases, you can still claim up to $300 worth on your tax return.
That $300 can cover things like:
- Work-related clothing (non-compulsory uniforms, laundry costs)
- Stationery or office supplies
- Tools or small equipment
- Union fees or subscriptions
While receipts aren’t required up to this limit, you do still need to have physically spent the funds and be able to show how you worked out the claim if the ATO asks.
What about work-related car expenses?
If you use your personal vehicle for work (generally excluding the commute to and from work), you may be able to claim deductions using the cents per kilometre method — currently 88 per kilometre (as of 2024-25).
Under this method, you can claim up to 5,000 km per year without needing written receipts, but you must be able to show:
- How you calculated the distance
- That the travel was work-related
- A reasonable pattern of usage (diary entries or calendar notes help)
Phone and internet expenses
You can claim a portion of your phone and internet bill if you use them for work. If you don’t have itemised bills, you’ll need to keep a 4-week representative diary to show your usage pattern — for example, if 30% of your phone use is work-related, you can claim 30% of the total bill for the year. If you are working from home you will also need to keep a daily diary of your recorded work hours.
Monthly tax invoices are required to demonstrate what the phone / internet plan is for and to confirm the owner of the plan.
When you do need receipts
Beyond the above, most deductions do require written records. This includes:
- Travel and accommodation expenses
- Training or self-education
- Equipment over $300 (which must be depreciated)
No matter the deduction, if you’re ever in doubt, assume that evidence is expected — even if it’s not in the form of a traditional receipt. A valid tax receipt should include a valid ABN, Name of Supplier, Location, Date, amount and description of the item being purchased. Not everyone has an ABN, however they can still supply you a receipt. Particularly take care when purchasing goods on the internet from places such as ‘Market Place’ or ‘Gum Tree’. It is important to be able to demonstrate to the ATO that you did actually make the purchase. If the seller is unwilling to supply, a written receipt, it may be difficult to prove the purchase with the ATO.
What the ATO wants to see
The ATO will expect that your claims are:
- Directly related to earning your income
- Personally paid for (not reimbursed by your employer)
- Supported by a record, whether that’s a receipt or an alternative
If you’re ever audited, being able to explain how you arrived at a claim is just as important as the documentation itself.
Do I need a receipt for small expenses?
Yes, generally, the ATO does require receipts for all work-related expenses, no matter how small.
However, there are some exceptions:
You don’t need a receipt if:
- The total of your work-related expenses is under $300. You can still claim this amount without written evidence, but you must be able to show how you calculated it.
- The expense was $10 or less, and you couldn’t get a receipt. In this case, you can use a diary note with details of the purchase (what, when, where, why). But this only applies for a maximum of $200 worth of such small expenses per year.
