No one likes keeping receipts, so we often throw them away. Regrettably, throwing away your receipts can prove to be a problem when tax time arrives. That raises the question on everyone’s mind, can you still claim tax deductions without receipts?
In this blog, we will answer what is a tax deduction, what can you claim on tax without receipts, and how much can you claim on tax without receipts. If you are looking to get the most out of your tax return this year, this article is for you.
What is a tax deduction?
Utilising tax deductions to your advantage is important in minimising your tax liability to maximise your tax return. But what does the ATO consider a tax deduction?
There are 3 general rules to be met for an expense to be recognised as a tax deduction:
- The expense is work-related.
- You have paid for it, and you were not reimbursed by your employer.
- Have some type of record to prove it.
People often believe the rule of needing a record to prove a purchase means keeping a receipt. Although that is the easiest way to prove a purchase, it is not the only way. People can keep different records to prove they have incurred expenses over the year.
If you are still unsure of the tax deduction rules, read our blog “What tax deductions can I claim”.
What can you claim on tax without receipts?
If you do not have a receipt to prove your purchase, you may be able to use other records as proof. Here we look to answer the question, what deductions can I claim without receipts?
Here are some examples of records that can be used to claim deductions instead of using receipts:
Cents per kilometre
This involves maintaining a journal of the number of kilometres you have travelled for work purposes. For 2023-24 you can claim 85 cents per kilometre for car expenses incurred for work. You can claim up to a maximum of 5,000km for one year. You can only claim car expenses once, you cannot claim the cents per kilometre method and the logbook method at once.
Use this cents per km calculator to check you tax deduction. You can also this as a cents per km reimbursement calculator to check your employer is reimbursing you correctly.
To use this cent per km calculator, select the financial year you are calculating and enter in the number of kms you have travelled or expect to travel – remember this maxes out at 5,000 kms. You can then see the expected tax deduction for the cents per km method.
Working from home diary
You may claim working-from-home deductions if you have kept a record such as a work diary. You can claim a fixed working-from-home rate for every hour worked from home. In 2023, the fixed working-from-home rate is 67 cents per hour. For more information, check out our blog “Tax Deductions Working from Home”.
Uniform or protective clothing laundry
You can claim up to $150 for laundering your work uniform under certain circumstances using a logbook. Check out our blog for more information on uniform deductions.
Email receipts
Sometimes receipts may be emailed to you. If you do not have a physical copy of your receipt, it is worth checking your email to see if you were sent a digital copy.
Income statement
Your income statement can be used as a record for items such as union fees. Union fees generally do not require receipts as they show up on your PAYG summary or income statement.
Bank statements
Using One Click Life’s Simple Accounting Manager (SAM), you can quickly scan your bank statements to find hidden tax deductions related to your occupation. SAM makes it easy to find and claim deductions in your bank statement, making your life easier.
The ATO may grant you relief from keeping records if there is a reasonable explanation for not having records. For example, losing your records with no genuine way to reproduce a copy.
How much can you claim on tax without receipts?
Now you know what expenses can be claimed using alternatives to receipts, let’s look at how much you can claim on items without receipts. Total work expenses, small expense receipts, and total laundry expenses can be claimed without receipts.
Here we will have a deeper look into the maximum value you can claim without a receipt for each item.
Total work expense
The ATO states you are not required to have written evidence if you are claiming less than $300 in work expenses overall. That means you can claim a total of $300 without receipts, although you are required to show how you spent money on the item and how your claim was calculated. The total work expense limit does not include travel expenses, car expenses, or meal allowance.
Small expense receipts
You can claim up to $200 of work-related expenses without receipts for items that cost $10 or less. The ATO still requires you to make a record of the expenses that show:
- What item was bought
- The date it was bought
- Where the item is from
- The purchase price of the item
You can simply keep a record of your expenses and the items above in your work diary.
Total laundry expenses
You do not require written evidence if your laundry expense is $150 or lower. You are still required to show how you spent money and how you calculated the amount you are trying to claim. The $150 laundry expense also correlates with the total work expense. For example, if you claimed the full $150 of laundry expenses, you only have $150 left to claim other work-related expenses.
In summary, a tax deduction must be work-related, paid for by you, and have a record to prove it. You can use alternative records to receipts such as logbooks, and work-from-home diaries to claim certain tax deductions. It is important to check your emails, income statements, and bank statements to ensure you have compiled all the proof you can to claim your deductions.
In total, you can claim $300 of work-related expenses without written evidence. For items under $10, you can claim a total of $200. Lastly, you can claim a maximum of $150 for laundry expenses without written evidence.
Get more out of your tax return with One Click Life!
If are you still wondering, “What deductions can I claim without receipts?”, don’t stress, One Click Life can help you get the most out of your tax return this financial year. One Click Life makes it simple to claim your tax return online. One Click Life offers an experience run by tax experts that is easy to use and provides tax returns at your fingertips. You can organise, track and manage all your life admin in one place, so you can spend more time doing things you enjoy in life.