Throughout the year we all try to remember to stash away work related receipts in readiness for Tax Time. But did you know this may not be necessary?
Work Related Expenses under $300
Fortunately if you claim less than $300 in total work related deductions you don't need to have written evidence of the expenses. In some cases the Australian Tax Office (ATO) may get in touch and ask how you came to the amounts you lodged. So while the ATO don't require any proof of purchase it's best to keep a breakdown of your expenses just in case.
Work Related Expenses over $300
Its fairly well known that you need to keep your receipts otherwise you can't claim your expenses at tax time, but that's a common misconception. Understandably keeping track of a years worth of receipts can be an arduous task. Trust me, I get it, I seem to lose my receipts in the journey from the checkout at Woolies to my kitchen bench. Thankfully the ATO is on our side with this one. While receipts are the holy grail of proof for expenses incurred they do accept the following other forms of documentation:
Photos or digital copies of the receipt
Bank statements
Credit card statements
BPAY reference numbers, combined with bank statements, or
BPAY reference numbers, combined with tax invoices.
Although bank and credit card statements don't provide detail on what expense was incurred, the ATO will allow you to write in the missing information.
In short, receipts are hard proof of your purchase but the ATO will also accept your bank and credit card statements as sufficient proof.
See below for a handy guide!
The ATO's guide on acceptable documentation for Work Related Expenses over $300
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