If you’re like most tradies or small business owners, you’ve probably got a glovebox, shoebox, or desk drawer stuffed with faded, crumpled receipts. You tell yourself you’ll “sort it out later,” but later usually comes around in June — along with the panic of tax time.
The Australian Taxation Office (ATO) has clear rules about what a purchase receipt must show for it to be valid for tax deductions or GST claims. If even one key detail is missing, your claim could be rejected — and that’s money left on the table.
And here’s the kicker: you need to keep those receipts for at least 5 years. Paper fades, ink disappears, and receipts get lost, which is why going digital is no longer just a “nice to have” — it’s essential.
Why Compliant Receipts Matter
Your receipts are more than just proof of payment — they’re your defence if the ATO ever questions your deductions.
For a receipt to be tax-deductible in Australia, it needs to be legible, complete, and directly linked to an expense related to earning your income. If the receipt is missing key details, you can’t claim the GST — and you might not be able to claim the expense at all.
For trade-based businesses like builders, plumbers, and sparkies, purchases add up quickly — tools, materials, fuel, uniforms, and equipment. Missing out on deductions because of incomplete or damaged receipts can cost you thousands over time.
Don't let missing or incomplete receipts cost you thousands in lost tax deductions.
Contact Get Me Sorted today to start your secure digital receipt library.
Protect your claims by ensuring every receipt is compliant and stored safely for five years. Contact Get Me Sorted today to start your secure digital receipt library.
The 5 Must-Have Details on Every Receipt
Before you stuff that receipt into your wallet or toolbox, check it has these five essentials:
Supplier Name
The name of the business you purchased from must be clearly visible. Nicknames, abbreviations, or illegible handwriting won’t cut it.
ABN (Australian Business Number)
This proves the supplier is registered to operate in Australia. No ABN? They should provide a valid exemption note. Without this, you can’t claim GST.
Date of Purchase
The purchase date must match when the expense occurred. This matters for timing deductions in the correct financial year.
Description of Goods or Services
It’s not enough for a receipt to say “general goods.” It should specify “timber planks,” “copper piping,” or “impact drill.” The ATO needs to understand what was purchased.
Total Amount Paid (and GST if applicable)
The total should include GST as a separate line item or clearly state “Total price includes GST.”
Pro Tip: Always check your receipt before leaving the store. It’s easier to fix mistakes on the spot than weeks later.
How Long You Need to Keep Receipts in Australia
The ATO requires most businesses to keep records — including receipts — for five years from the date you lodge your tax return.
If you amend your return or are involved in a dispute, that five-year clock resets. And if you have assets subject to capital gains tax, you may need to keep records for much longer.
That’s a long time for a piece of paper to survive in the bottom of a work ute or office drawer.
From Crumpled to Compliant: Storing Receipts the Smart Way
The problem with paper receipts:
- Thermal paper fades within months
- Ink smudges with moisture or heat
- They’re easily lost or damaged
The smart solution:
Digitising your receipts not only preserves them but also makes them easy to find when you need them.
Options include:
- Scanning and saving to the cloud (Google Drive, Dropbox, OneDrive)
- Using a receipt scanning app with OCR (optical character recognition) so you can search by supplier or date
- Professional services like Get Me Sorted that handle scanning, indexing, and secure digital filing for you
Digital storage means your receipts are:
- Backed up and safe from loss
- Accessible from anywhere
- Organised for instant retrieval at tax time
- Compliant with ATO record-keeping rules
Common Receipt Mistakes to Avoid
- Faded receipts — especially from fuel stations or Bunnings
- No ABN — missing out on GST claims
- Handwritten receipts with missing details
- Unclear descriptions — “goods” won’t satisfy the ATO
- Lost receipts — no proof means no claim
Messy, incomplete receipts can cost you money. By checking for the five must-have details and storing them digitally for at least five years, you’ll protect your deductions and save time (and stress) at tax time.
Get Me Sorted can scan, organise, and store your receipts securely — so you’re always tax-ready.
If your receipts are currently stuffed in a glovebox, box, or drawer, now’s the time to turn that crumpled pile into a compliant, easy-to-access system.
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