You can claim up to $300 in work-related expenses on your tax return without receipts.
The Australian Taxation Office (ATO) has strict rules on claiming deductions, but also recognises that keeping a receipt for every expense isnโt always possible.
With our guide, come tax time, you’ll understand what you can claim for work expenses like car, laundry, small expenses, overtime meal claims, and uniform expenses.
How much can you claim on tax without receipts?
You can claim deductions totalling $300 or less for work expenses without a receipt. This is the total for the entire financial year, not $300 per item.
You still need additional records to show how you arrived at your total claim, including stationery, union fees, and small tools. Bank statements, diary records or a spreadsheet are all accepted by the ATO as a substitute record regarding tax deductibles.
If your total claim goes over $300, you need written evidence for every expense โ not just the amount above the threshold.
Hot tip: When you claim a deduction, it is best to do so with evidence. Make sure to keep all your receipts or other documents, especially as a sole trader.
Why should you keep receipts for expense claims?
Receipts are the best form of written evidence for your tax affairs. Without them, the ATO can reject your claim or even trigger an audit.
If a deduction is rejected, the amount goes back into your taxable income. You pay more tax and lose your tax refund. In serious cases, fines start at $330 per penalty unit.
Use accounting software to track and store your expense claims digitally throughout the year, which makes claiming much easier when you lodge your tax return if the ATO requires you to provide evidence.
How do you claim car expenses without receipts?
You can claim car expenses for work-related trips using the cents-per-kilometre method, which covers fuel, registration, insurance, maintenance, and other costs at a single rate.
How many kilometres can you claim on tax without receipts?
You can claim up to 5,000 business kilometres per car per financial year as a tax deduction.
You donโt need fuel receipts. But you do need a reasonable estimate of your work-related trips backed by diary records or a written record of how you calculated your business kilometres.
When can’t you claim car expenses?
You canโt claim car expenses for:
- Travel between home and your normal workplace, which is private use.
- Any expenses already reimbursed by your employer or claimed separately.
- Motorcycles or vehicles that arenโt a car, which fall under separate travel expenses.
If your employer needs you to use your own car for work, keep a record of every trip. Keep notes of the goods or services date, purchase date and purpose of travel.
You can use the ATOโs myDeductions tool to log your work-related trips throughout the year.
How do you claim laundry expenses without receipts?
You can claim up to $150 in laundry expenses without written evidence. And this amount counts toward your $300 total โ including washing, drying and dry-cleaning of work clothing only.
The ATO sets fixed rates of $1 per load of only work clothing, or 50 cents per mixed load. Dry cleaning expenses with a receipt can be claimed separately on top of these amounts.
You can claim laundry for distinctive uniforms, occupation-specific clothing and protective clothing. You canโt claim for everyday clothing like plain black pants, even if your employer needs you to wear black pants.
Repairing work-related clothing is also not covered under the laundry allowance.
Small expenses
You can claim small items like stationery and office supplies without a receipt as long as the expenses are under $10 and the total amount over the year does not exceed $200.
Hard to get receipts
The ATO considers hard-to-get receipts an exception, given the realities of proving purchase for every transaction. The eligible claim needs to be reasonable and business-related.
If you are unable to get a receipt, you must be able to produce a bank statement plus a written record of the purchase and the transaction.
This rule applies to purchases of roughly $10. Purchases that fall under hard-to-get receipts do not count toward the small expenses rule.
Claiming expenses without receipts
When you are ready to complete your tax return, it is better to err on the side of caution and use as many receipts as possible. When claiming tax deductions for work-related expenses without receipts, make sure you have the following on hand:
- Related to your business or work
- Calculated costs, supplier details, and the date and time of purchase
- Supplementary documents, i.e. bank statements, written evidence, expense diary records, etc.
Having dedicatedย accounting softwareย will help you record and track your expenses when filing your tax returns. If you’re unsure,ย consult a bookkeeperย or a registered tax agent.
